FROM THE CHAIRMAN'S DESK

I am honoured to address you for the first time as Chairman of Himachal Pradesh Gramin Bank, having assumed charge on 17 July 2026. I consider it a privilege to lead an institution that has consistently earned the trust and confidence of its customers and has played a significant role in promoting financial inclusion, rural prosperity and socio-economic development across the State of Himachal Pradesh.

Although I joined the Bank after the close of the financial year ended 31 March 2026, I am pleased to share the Bank's performance during FY 2025–26. The achievements of the year reflect the collective efforts of the Board of Directors, management and employees, as well as the unwavering trust reposed in the Bank by its customers and stakeholders. I compliment everyone associated with the Bank for their valuable contribution in achieving these milestones.

The financial year 2025–26 witnessed steady business growth, improved asset quality and continued progress in strengthening the Bank's operational and financial performance. These achievements provide a strong foundation for the Bank's future growth and reaffirm its commitment to creating sustainable value for all stakeholders.

During the year, the Bank achieved a total business of Rs.14,987.54 crore, registering a growth of 10.07% over the previous financial year. Deposits increased by 8.23% to Rs.10,053.46 crore, while advances recorded a healthy growth of 14.04%, reaching Rs.4,934.08 crore as on 31 March 2026. These encouraging results demonstrate our continued focus on sustainable growth, prudent business expansion and customer-centric banking.

The Bank further strengthened its asset quality during the year by reducing the Gross NPA ratio from 3.18% to 2.55% and the Net NPA ratio from 0.69% to 0.32%. This improvement reflects disciplined credit monitoring, focused recovery efforts and sound risk management practices adopted across the Bank.

Performance of the Bank under Key Business Parameters as on 31 March 2026

The Bank presently operates through a network of 278 branches, covering all twelve districts of Himachal Pradesh. In addition to its branch network, the Bank continues to promote financial inclusion through Bank Mitra and Bank Sakhi initiatives, ensuring accessible banking services to customers residing in remote and underserved areas.

The banking industry continues to evolve rapidly with technological advancements and changing customer expectations. Himachal Pradesh Gramin Bank remains committed to embracing digital transformation by strengthening its digital delivery channels and providing secure, convenient and customer-centric banking services. The Bank continues to promote digital banking through UPI, Mobile Banking, Internet Banking, RuPay Debit Cards, RuPay Credit Cards and other digital payment solutions, thereby enhancing customer convenience and financial accessibility.

The Bank continued to play a significant role in implementing the Government of India's flagship Social Security Schemes, namely Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY). The Bank maintained a strong presence in the State under these schemes and continued to extend financial security to a large number of beneficiaries.

Social Security Schemes as on 31.03.2026

Amount in Rs. Lacs

The Bank also continued to strengthen its fee-based income through the distribution of insurance and other third-party financial products, while offering comprehensive financial solutions to customers and creating sustainable non-interest income.

Strategic Priorities for FY 2026–27

As we move forward, our strategic priorities shall include:

• Strengthening the Credit-Deposit Ratio through quality credit expansion.
• Increasing CASA deposits through focused customer acquisition and relationship management.
• Further improving asset quality by preventing fresh slippages and accelerating recovery in stressed assets.
• Strengthening Capital Adequacy through prudent lending and improved profitability.
• Accelerating digital transformation and enhancing customer experience through technology-driven banking solutions.
• Promoting financial inclusion and expanding banking outreach across rural and underserved areas.
• Maintaining robust governance, regulatory compliance and effective risk management.

The Bank reported a decline in net profit during FY 2025–26, primarily due to provisions towards Mark-to-Market (MTM) losses on Government securities in accordance with the applicable RBI guidelines. While this had an impact on the financial results for the year, the Bank's core business fundamentals remain strong. We remain committed to improving profitability through sustainable business growth operational excellence and prudent financial management.

As I begin this new responsibility, my focus will be on strengthening the Bank's financial position, accelerating digital transformation, enhancing customer service, promoting financial inclusion and fostering a culture of transparency, innovation and operational excellence. I look forward to working closely with our employees, customers, regulators and all stakeholders to build upon the strong foundation laid over the years and to take Himachal Pradesh Gramin Bank to greater heights.

Customers remain at the heart of everything we do. We shall continue to strengthen customer relationships by delivering efficient, technology-enabled and accessible banking services while creating long-term value for all our stakeholders.

I express my sincere gratitude to our valued customers, shareholders, Board of Directors, employees, Government of India, Government of Himachal Pradesh, our Sponsor Bank—Punjab National Bank, the Reserve Bank of India, NABARD, and all other stakeholders for their continued trust, guidance and support.

Together, we shall continue our journey towards building a stronger, more resilient and future-ready Himachal Pradesh Gramin Bank.