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Hon'ble Members of the Bank,thI welcome all of you at this 16 Annual General Meeting of the Bank, which is a befitting occasion to
take stock of the progress being made by your bank. I have the privilage to present before you the report for financial year ending 2012-13 and hope that you would be immensely pleased to note the progress of the bank at all fronts. It gives me immense pleasure to give you a bird's eye view of the financial performance of our bank with the help of key financial indicators :
Summarised Financial Results :
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
No. of Members
Share Capital
Reserves &
Accumulated Profit
Deposits
Term Deposits
Saving Deposits
Current Deposits
Total
Loans & Advances
Short Term Advances
Medium Term Advances
Long Term Advances
Total
% of Overdue Advances
to Total Advances
Priority Sector Advances
Ratio of Priority Sector
Advances to Total Advances
Investments
Term Deposits in Banks
In Govt., Approved
Securities & others
Total
Working Capital
Net Profit (Before Tax)
Net Profit (After Tax)
31-03-2012 dks 31-03-2013 dks o"kZ esa gqbZ ofºAs on 31.03.2012
(Rs. In Lacs)As on 31.03.2013
(Rs. in Lacs)% Growth
(Percentage)
lnL; la[;k
va'kiwath
dks"k ,oa
ladfyr ykHk
tekjkf'k
(d) fe;knh tek
([k) cpr [kkrk
(x) pkyw [kkrk
;ksx
Ω.k o vfxze
(d) vYikof/k
([k) e/;kof/k
(x) nh?kkZof/k
;ksx
vfrns; Ω.k dk
izfr'kr dqy Ω.k ls
izkFkfedrk ks= Ω.k
izkFkfedrk ks= Ω.k
dk dqy Ω.k ls izfr'kr
fuos'k
(d) cSadksa esa fe;knh tek
([k) ljdkjh] vuqeksfnr
izfrHkwfr;ksa esa ,oa vU;
;ksx
dk;Z'khy iwath
'kqº ykHk (vk;dj ls igys)
'kqº ykHk (vk;dj ds ckn)
7015
1163.36
520.42
18764.04
5167.91
646.16
24578.11
6616.79
2494.84
5407.12
14518.75
0.27%
5885.95
40.54%
2920.67
6850.82
9771.49
26812.78
274.75
201.85
9
7601
2236.64
604.97
24295.02
6021.61
1529.56
31846.18
10767.83
3226.81
8013.40
22008.05
0.52%
8911.00
61.37%
2386.05
7266.16
9655.21
35264.03
312.04
217.12
8.35%
92.26%
16.25%
29.48%
16.52%
136.72%
29.57%
62.73%
29.34%
48.20%
51.58%
92.59%
51.39%
51.38%
(-) 18.30%
6.06%
(-) 1.19%
31.52%
13.57%
7.57%
10
thAs is evident from the above, business of the Bank continued to grow in its 15 year of functioning
also. We had fixed for ourselves some ambitious targets for the just concluded financial year and you
would be delighted to know that we surpassed even those targets with considerable margin. Here
are the lighlights of bank's achievements and growth :
DEPOSITS
We have garnered deposits to the tune of 318.46 crores against the targetted figure of 300.00 crores.
Thus it is a growth of 29.57% over the previous year.
LOANS AND ADVANCES
Not willing to be left behind, our loans and credit portfolio registered a phenomenal growth rate of
51.58% - taking last year's figure of 145.18 crore to 220.08 crore. We have been able to maintain the
gross NPA at 0.23% which was 0.24% last year. Thus it is a growth not only in quantity but quality too.
With sufficient provisioning, our net NPA is nil.
PRIORITY SECTOR ADVANCES
Our bank is playing the role given to it by the nation's regulatory agencies including Reserve Bank of
India with full enthusiasm and initiative with the result that our Priority Sector advances are 61.37% of
total advances more than the obligatory 40% and stand at 8911.00 lacs.
FINANCIAL INCLUSION
While on the topic of priority sector advances, it seems in place to mention the admirable initiative
taken by our bank to do something worthwhile in the field of Financial Inclusion. Our Micro-finance
portfolio is a booming one and feeling happy with the experience and results achieved so far, we have
expanded the area and our commitment for the same. Not only our rural and semi urban branches
but also the urban and metro branches are offering micro finance to eligible self-help-groups.
SHARE CAPITAL
Over the year, Bank's share capital has grown from last year's Rs. 1163.36 lacs to 2236.64 lacs which
is an increase of 92.26% or an increase of 1073.28 lacs. This also explains why we are very
comfortably placed in view of RBI's norms of CRAR. As against 9% stipulated, our CRAR is 14.28%.
PROFIT AND INCOME TAX
Net Profit for the year after tax is Rs. 217.12. It is remarkable in view of the fact that in this year Bank
has invested into technology and saw major expenditure in opening of new branches with one
merger at Indore.
A Bank for Your Welfare
11
A Bank for Your Welfare
AUDIT AND INSPECTIONS
Statutory Audit
The statutory auditors M/s. G.P. Gupta & Co., Chartered Accountants have been quite appreciative of
the functioning of our Bank and have gone to the extent of saying that they have found our systems
and procedures much better compared to other cooperative banks audited by them.
Concurrent Audit
In compliance of the instructions of RBI, concurrent audit of all branches of the bank is done on
regular basis by retired senior bankers who had been working in different public sector banks.
Internal Audit
A well-qualified chartered accountant firm of Delhi has been engaged by the Bank as Internal Auditor/
Consultant to carry out internal audit and suggest improvements wherever necessary. Many
suggestions received from the firm have proved to be quite useful for the bank. In addition the
surprise internal audit of one branch is performed by the Manager of another branch. Audit of Loans
portfolio also is separately being done by a seasoned banker.
Inspections
Bank's senior officers visit different branches for surprise checks and for proper guidance.
BANK'S FUNCTIONING AND MISC. ASPECTS :
Core Banking Solution (CBS)
All branches of our bank as well as Head Office are functioning with CBS technology and this has
enabled us to offer various other technology - based services like ATM-cum-Debit Cards, ATMs at our
branches etc. Many more value added services like Mobile banking, Net banking are also in the pipe
line and will be launched soon.
ATM
After getting connected ourselves with Rupay i.e. NFS network as a sub-member, we have started
installing ATMs at all of our branches. ATMs at Noida, Meerut, Ghaziabad, Ansari Road and Chilkana
road are already providing service to the customers and members of general public. Besides On-site
ATMs at all of our 21 branches, we propose to install several off-site ATMs also in such areas where
we don’t have our branch yet.
12
A Bank for Your Welfare
NEFT / RTGS
The bank has also obtained IFS Code and is now participating in the RTGS / NEFT as a sub-member
of IDBI Bank Ltd.
FREE SMS
Our bank offers the facility of free SMS to all of its Savings Bank, CC and Current account holders.
Thus, whenever some transaction takes place in their account, they get an SMS instantly on their
mobile phone registered with us for this purpose.
OTHER ASPECTS
Bank continues to honour its decision not to grant any advance against the security of shares and
debentures. Similarly, bank does not invest in share market also. For the purpose of investments,
bank chooses only govt. and trustee securities, debt instruments and maintains its deposits with
various Scheduled banks only.
The Bank is enjoying 'A' rating from the Auditors.
The Bank continues to be a subscriber of DICGC (Deposit Insurance and Credit Guarantee
Corporation) scheme as per requirement of RBI and is thus extending the benefits of it to bank's
constituents also.
The Bank complies in letter and spirit, with the demands, suggestions, guidelines, instructions of
Reserve Bank of India as contained in their various letters and circulars.
All branches of the Bank and Head Office are fully air-conditioned and are a pleasure to the eyes for
the visiting public.
Home Banking scheme as implemented by the Bank places us a class apart from other banks and is
highly appreciated by the beneficiaries of the same.
In house training facility is available to all staff members.
OUR FUTURE PLANS
New Branches :
We have obtained permission of the Reserve Bank of India to open 6 more branches. Two of these
branches will be opened in Saharanpur city, one in Muzaffarnagar, one in Khatauli, one branch each
in Noida and Ghaziabad. Thus, we would be having 21 branches shortly.
13
A Bank for Your Welfare
Business :
Under the able guidance of our Board of Directors and due to great devotion of staff towards their
duties, we have been able to secure more and more business for the Bank. We hope to grow in leaps
and bounds in the days to come as we shall have stronger presence in western U.P. Out of which two
branches would be in NCR.
The Bank is fully computerized and is offering various services, some of which may be mentioned
hereinbelow:
1. Outward and Inward Remittances anywhere in India. No charges for NEFT / RTGS.
2. Free SMS about each financial transaction in their SB, CC and CD Accounts.
3. Loans and advances at very competitive interest.
4. Easily available lockers.
5. Extended business hours, 10.00 a.m. to 5.00 p.m. (during weekdays) and 10.00 a.m. to 2 p.m.
(Sat.) without any lunch break.
6. CBS Banking.
7. Fast collection of outstation instruments at very low rates.
8. Issue of ATM-cum-Debit Cards to customers holding SB or Current Account with us.
All of our branches are air conditioned, CBS compliant and are situated very conveniently and are
attractively decorated.
We have started providing finance against gold ornaments also with minimal paper work and
formalities. This scheme is gaining popularity among our customers and after successful trial at local
branches in Saharanpur, we have extended the area of operation to more and more branches.
I am confident that if we continue to get the same kind of highly valuable cooperation and kind
blessings of all of you, we would be scaling new heights in the days to come.
CONTINGENT PROV. AGAINST DEPRECIATION IN INVESTMENTS 2,54,016.00
A Bank for Your Welfare
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2013
INTEREST AND DISCOUNT
(I) INTEREST ON LOANS & ADVANCES
(ii) INTEREST ON INVESTMENTS
COMMISSION, EXCHANGE & BROKERAGE
OTHER RECEIPTS
(I) LOAN PROCESSING CHARGES
(ii) INCIDENTAL CHARGES
(iii) LOCKER RENT
(iv) DIVIDEND FROM MUTUAL FUNDS
(v) PROFIT ON REDEMPTION/ SALE OF INVESTMENTS
(vi) BAD DEBTS RECOVERED
(vii)MISCELLANEOUS INCOME
GRAND TOTAL
INCOMECURRENT YEAR
31-03-2013PREVIOUS YEAR
31-03-2012
(1)
(2)
(3)
TOTAL
TOTAL
Contd...
13,86,52,385.80
7,86,04,629.89
21,72,57,015.69
11,61,658.82
48,32,392.00
18,59,190.74
7,98,600.00
4,56,383.37
55,02,445.06
-
24,28,119.85
1,58,77,131.02
23,42,95,805.53
20
(Amount in Rs.)
22,66,97,796.75
8,63,60,257.06
31,30,58,053.81
9,25,950.00
79,47,102.00
22,65,292.25
12,37,100.00
-
82,99,370.74
10,03,400.00
25,98,755.95
2,33,51,020.94
33,73,35,024.75
As per our report of even date attachedFor G. P. Gupta & Co. (Chartered Accountant)
Sd/-(G.P. Gupta)PARTNER
Sd/-(Sudhakar Agarwal)
DIRECTOR
Sd/-(Sarvesh Singhal)
DIRECTOR
Sd/- (Suveer Kumar Gupta)
MD & CEO
Sd/-(Shiv Puran Gulati)VICE CHAIRMAN
Sd/-(Yashvir Kumar Gupta)
CHAIRMAN
EXPLANATORY NOTE
TRANSFER FROM IFR 2,54,016.00–
A Bank for Your Welfare
21
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 1 : CAPITAL
AUTHORIZED CAPITAL
50,00,000 Shares of Rs. 100/= each
SUBSCRIBED CAPITAL
22,36,644 Shares or Rs. 100/= each
AMOUNT CALLED UP
On 22,36,644 Shares at Rs.100/= each
Of (iii) above, held by
(a) Individuals & others
(b) Co-operative institutions
(c) Government
STATUTORY RESERVE(A) Statutory Reserve(B) Add : Statutory Reserve from Erstwhile Malwa Bank, Indore.
INVESTMENT FLUCTUATION RESERVE(A) INVESTMENT FLUCTUATION RESERVE(B) Add : IFR from Erstwhile Malwa Bank, Indore.
OTHER FUNDS AND RESERVES(a) SHARE TRANSFER FUND(b) PROVISION ON STANDARD ASSETS(c) SPECIAL RESERVE U/S 36(1)(viii) OF I.T. ACT(d) CONTINGENCY RESERVE(e) Add : Prov. on STD Assets from Malwa Bank, Indore
GRAND TOTAL
(i)
(ii)
(iii)
50,00,00,000.00
11,63,36,200.00
11,63,36,200.00
11,63,36,200.00
-
-
SCHEDULE 2 : RESERVE FUNDS & OTHER RESERVES
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(i)
(ii)
(iii)
TOTAL
TOTAL
TOTAL
(Amount in Rs.)
Contd...
50,00,00,000.00
22,36,64,400.00
22,36,64,400.00
22,36,64,400.00
-
-
2,71,16,947.0012,76,215.00
2,83,93,162.00
27,45,984.007,89,640.00
35,35,624.00
50,00,000.0072,38,988.0030,20,894.0044,92,880.00
9,903.00
1,97,62,665.00
5,16,91,451.00
2,20,31,778.00-
2,20,31,778.00
2,45,984.00-
2,45,984.00
50,00,000.0047,38,988.0019,11,390.0024,74,365.00
-
1,41,24,743.00
3,64,02,505.00
A Bank for Your Welfare
22
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 3 : DEPOSIT & OTHER ACCOUNTS
FIXED DEPOSITS
(a) INDIVIDUALS & OTHERS
(b) CENTRAL CO-OPERATIVE BANKS
(c) OTHER SOCIETIES
SAVING BANK DEPOSIT
(a) INDIVIDUALS & OTHERS
(b) CENTRAL CO-OPERATIVE BANKS
(c) OTHER SOCIETIES
CURRENT DEPOSITS
(a) INDIVIDUALS & OTHERS
(b) CENTRAL CO-OPERATIVE BANKS
(c) OTHER SOCIETIES
MONEY AT CALL AND SHORT NOTICE
GRAND TOTAL
1,87,64,03,616.38
-
-
1,87,64,03,616.38
51,67,90,707.18
-
-
51,67,90,707.18
6,46,15,710.70
-
–
6,46,15,710.70
-
2,45,78,10,034.26
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(i)
(ii)
(iii)
(iv)TOTAL
TOTAL
TOTAL
TOTAL
(Amount in Rs.)
Contd...
Contd...
SCHEDULE 4 : OTHER LIABILITIES & PROVISIONS
(i) BILLS PAYABLE (DDs/POs ISSUED BUT NOT YET
PRESENTED FOR PAYMENT)
(ii) UNCLAIMED DIVIDENDS
(iii) SUNDRIES
(iv) PROVISION FOR BONUS
(v) PROVISION FOR INCOME TAX
(vi) DEFERRED TAX LIABILITY
(vii) TAX DEDUCTED AT SOURCE
(viii) PROVISION FOR AUDIT FEES
(ix) PROVISION FOR BAD & DOUBTFUL DEBTS (NPA)
(x) PAID-UP CAPITAL (COLLECTION ACCOUNT) OF
ERSTWHILE BHOJ NAGRIK SAHAKARI BANK LTD.
DHAR, M.P.
(xi) PAID-UP CAPITAL (COLLECTION ACCOUNT) OF
ERSTWHILE MALWA COMMERCIAL CO-OP BANK
LTD., INDORE, M.P.
(xiI) CONTINGENT PROV. AGAINST DE. IN INVESTMENTS (IDR)
2,29,83,880.81
1,78,686.00
3,52,380.00
7,53,200.00
72,61,151.00
2,93,089.00
11,991.00
80,899.00
4,28,102.20
19,33,900.00
–
2,54,016.00
3,45,31,295.01
2,42,95,02,025.30
-
-
2,42,95,02,025.30
60,21,60,727.91
-
-
60,21,60,727.91
15,29,55,622.60
-
–
15,29,55,622.60
-
3,18,46,18,375.81
67,83,143.70
2,01,193.00
31,80,768.00
10,34,265.00
92,67,366.00
5,17,465.00
67,511.00
1,21,349.00
52,77,621.20
17,90,000.00
69,81,200.00
2,54,016.00
3,54,75,897.90
A Bank for Your Welfare
23
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 5 : PROFIT & LOSS
PROFIT AS PER LAST BALANCE SHEET
Loss of Malwa bank for the year till date of merger
LESS :APPROPRIATIONS OF PROFIT FOR
LAST YEAR
STATUTORY RESERVE
CO-OPERATIVE EDUCATION FUND
SHARE TRANSFER FUND
CONTINGENCY RESERVE
INVESTMENT FLUCTUATION RESERVE
BAD & DOUBTFUL DEBTS RESERVE
CONTINGENT PROVISION ON STD. ASSETS
DIVIDEND @ 12%
ADD: SURPLUS FROM MALWA COMMERCIAL
CO-OP BANK, INDORE (NET OF NON-
STATUTORY RESERVES, AS FAR AS REQUIRED)
ACCUMULATED LOSSES OF MALWA BANK
TILL DATE OF MERGER (31.08.2012)
LESS : PROVISION FOR STAFF BENEFIT
LESS : CO-OP. EDUCATION & STAFF TRAINING FUND
ADD : PROFIT OF THE YEAR B/F FROM P&L A/C
GRAND TOTAL
2,63,91,283.67
2,63,91,283.67
27,07,820.00
1,08,313.00
-
10,83,128.00
-
-
-
68,52,060.00
(1,07,51,321.00)
-
-
-
-
2,01,85,147.96
3,58,25,110.63
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(i)
(ii)
(iii)
(iv)
(Amount in Rs.)
Contd...
Contd...
TOTAL
TOTAL
TOTAL
3,58,25,110.63
(20,019.99)
3,58,05,090.64
50,46,287.00
2,01,851.00
-
20,18,515.00
25,00,000.00
45,00,000.00
25,00,000.00
1,02,35,473.00
(2,70,02,126.00)
(84,462.81)
5,000.00
82,421.00
2,958.19
2,17,12,164.27
3,05,18,087.10
A Bank for Your Welfare
24
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 6 : BALANCE WITH OTHER BANKS
CURRENT DEPOSITS
(a) DISTRICT CO-OPERATIVE BANK LTD.
(b) SBI & SUBSIDIARY BANKS
(c) OTHER PUBLIC SECTOR BANKS
(d) OTHER SCHEDULED BANKS
SAVING BANK DEPOSITS
FIXED DEPOSITS
(a) DISTRICT CO-OPERATIVE BANK LTD.
(b) SBI & SUBSIDIARY BANKS
(c) OTHER PUBLIC SECTOR BANKS & SCHEDULED BANKS
GRAND TOTAL
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(i)
(ii)
(iii)
TOTAL
TOTAL
(Amount in Rs.)
Contd...
Contd...
SCHEDULE 7 : INVESTMENTS
(i) IN CENTRAL & STATE GOVERNMENT SECURITIES
MARKET VALUE
FACE VALUE
(ii) OTHER TRUSTEE SECURITIES
(iii) SHARES IN CO-OPERATIVE INSTITUTIONS
(iv) OTHER INVESTMENTS
GRAND TOTAL
1,61,60,120.14
2,85,11,906.04
7,16,33,103.17
3,43,64,505.15
15,06,69,634.50
2,14,24,073.00
-
21,71,80,742.00
23,86,04,815.00
38,92,74,449.50
39,14,335.74
93,55,898.85
5,82,13,973.79
4,65,81,065.54
11,80,65,273.92
-
2,73,58,140.00
24,96,914.00
26,22,11,611.00
29,20,66,665.00
41,01,31,938.92
72,66,15,632.00
72,69,57,500.00
72,50,00,000.00
-
2,000.00
4,94,72,000.00
77,60,89,632.00
68,50,82,412.00
65,78,38,200.00
68,45,00,000.00
-
1,000.00
49,72,000.00
69,00,55,412.00
A Bank for Your Welfare
25
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 8 : ADVANCESSHORT TERM LOAN, CASH CREDITOVERDRAFT AND BILLS DISCOUNTEDOF WHICH SECURED AGAINST(a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)
MEDIUM TERM LOANS OF WHICH SECURED AGAINST(a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)
LONG TERM LOANSOF WHICH SECURED AGAINST (a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)
GRAND TOTAL
INTEREST RECEIVABLE ON INVESTMENTS (ACCRUED)
(a) GOVERNMENT SECURITIES(b) BANKS FDRs(c) OTHER INVESTMENTS TOTAL
INTEREST RECEIVABLE ON NPA (OVERDUE)
TOTAL
SCHEDULE 9 : INTEREST RECEIVABLE
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(i)
(ii)
(iii)
(i)
(ii)
(Amount in Rs.)
Contd...
Contd...
66,16,78,596.47
-66,16,78,596.4766,16,78,596.47
93,110.00-
24,94,83,663.29
-24,94,83,663.2924,94,83,663.29
11,38,880.46-
54,07,11,759.57
-54,07,11,759.5754,07,11,759.57
27,54,876.00-
1,45,18,74,019.33
1,07,67,82,776.89
-1,07,67,82,776.891,07,67,82,776.89
25,23,189.44-
32,26,81,279.84
-32,26,81,279.8432,26,81,279.84
32,07,865.5211,24,121,00
80,13,40,533.83
-80,13,40,533.8380,13,40,533.83
56,62,400.0095,531.00
2,20,08,04,590.56
91,81,796.006,96,54,466.44
1,02,588.00
7,89,38,850.44
4,21,095.00
7,93,59,945.44
77,52,399.005,86,30,811.64
36,392.00
6,64,19,602.64
3,73,088.00
6,67,92,690.64
A Bank for Your Welfare
26
SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013
SCHEDULE 10 : FIXED ASSETS
AS ON 01-04-2012
ADDITIONS DURING THE YEAR
LESS : SALE/ ADJUSTMENTS
LESS : DEPRECIATION FOR CURRENT YEAR
WRITTEN DOWN VALUE AS ON 31.03.2013
SCHEDULE 11 : OTHER ASSETS
(i) REFUNDABLE SECURITIES
(ii) STOCK OF PRINTED STATIONARY
(iii) MISCELLANEOUS RECEIVABLES
(iv) TAX DEDUCTED AT SOURCE
(v) INCOME TAX REFUNDABLE
(vi) ADVANCE INCOME TAX PAID
TOTAL
CURRENT YEAR31-03-2013
PREVIOUS YEAR31-03-2012
(Amount in Rs.)
As per our report of even date attachedFor G. P. Gupta & Co. (Chartered Accountant)
Sd/-(G.P. Gupta)PARTNER
Sd/-(Sudhakar Agarwal)
DIRECTOR
Sd/-(Sarvesh Singhal)
DIRECTOR
Sd/-(Suveer Kumar Gupta)
MD & CEO
Sd/-(Shiv Puran Gulati)VICE CHAIRMAN
Sd/-(Yashvir Kumar Gupta)
CHAIRMAN
Contd...
96,07,199.00
55,30,698.78
(4,71,355.00)
(28,66,259.73)
1,18,00,283.05
1,18,00,283.05
2,88,89,112.54
(31,166.00)
(50,77,558.00)
3,55,80,671.59
8,40,320.00
4,42,220.96
75,64,614.00
4,47,321.00
32,20,875.00
90,00,000.00
2,15,15,350.96
10,12,545.00
7,75,082.39
41,71,717.33
73,158.00
54,06,014.00
95,00,000.00
2,09,38,516.72
A Bank for Your Welfare
27
(A) BACKGROUND AND OPERATIONS:
1. Shivalik Mercantile Co-operative Bank Ltd. was registered in 1997 under Uttar Pradesh Co-operative Societies Act 1965 and started operations in September, 1998. After achieving a deposit base of Rs. 100 crores on 31.03.2010, the Bank became a Tier II bank and expanded its area of operation to whole of the state of Uttar Pradesh. Subsequently Bhoj Nagrik Sahakari Bank Maryadit, Dhar, Madhya Pradesh was merged into Shivalik Bank with effect from 1st November, 2010. Consequent upon this inter-state merger, Shivalik Mercantile Co-operative Bank Ltd. was deregistered under Uttar Pradesh Co-operative Societies Act, 1965 and was re-registered under the Multi State Co-operative Societies Act 2002, in September 2010, as a Multi-State Urban Co-operative Bank. The Bank again merged erstwhile Malwa Commercial Co-operative Bank Ltd., Indore with effect from 1st September, 2012. The Bank also continues to open new branches and presently has fifteen branches, ten in District Saharanpur, one each in Meerut, Ghaziabad & Noida, U.P., and one each in Indore & Dhar, M.P. The Bank provides complete retail and corporate banking services.
2. Merger of Malwa Commercial Co-operative Bank Ltd. with our bank:Malwa Commercial Co-operative Bank Ltd., Indore, M.P. (Target Bank) merged with Shivalik Mercantile Co-operative Bank Ltd. (Acquirer Bank) with effect from 1st September, 2012. As per the scheme of merger, the Share Capital of the Target Bank is being treated as Collection Account in the books of the Acquirer Bank and will remain so for a period of 1 year from the date of merger. During this period any share-holder of the Target bank desiring to withdraw his/her shares shall be paid back the amount at par. After the expiry of 1 year's period, the amount remaining unpaid shall be forfeited.
3. Merger of Bhoj Nagrik Sahakari Bank with our bank:a. Bhoj Nagrik Sahakari Bank Maryadit, Dhar, M.P. (Target Bank) merged with Shivalik
Mercantile Co-operative Bank Ltd. (Acquirer Bank) with effect from 1st November, 2010. As per the scheme of merger, the Share Capital of the Target Bank is being treated as Collection Account in the books of the Acquirer Bank and will remain so for a period of 10 years from the date of merger. During this period any share-holder of the Target
st(Schedule annexed to and forming part of the Balance Sheet as on 31 March, 2013 and st
Profit & Loss Account for the year ended 31 March, 2013)
SIGNIFICANT ACCOUNTING POLICIES, DISCLOSURES AND NOTES ON ACCOUNTS
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28
bank desiring to withdraw his/her shares shall be paid back the amount at par. After the expiry of 10 years' period, the amount remaining unpaid shall be converted to the share capital of the equivalent amount of Shivalik Bank.
b. As a part of the prudential practice the non-performing loans of the Target Bank which remained unrealized till 31st March, 2012 were written off as bad debts in last F.Y. During the current year, Rs 10.03 Lacs has been recovered and credited in Profit & Loss Account. The efforts for recovery of these loans will continue and recoveries, if any, shall be considered as income for the year in which they are made.
The financial statements have been prepared in accordance with the historical cost convention and on going concern concept and in accordance with the generally accepted accounting principles and the statutory provisions prescribed in Banking Regulation Act 1949, the Multi State Co-operative Societies Act 2002, circulars and guidelines issued by the Reserve Bank of India from time to time, and the Accounting Standards issued by the Institute of Chartered Accountants of India and practices prevailing within the banking industry in the country, except as otherwise stated.
2. Use of estimates
The preparation of the financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revisions to the accounting estimates are recognized prospectively
3. Foreign Exchange TransactionsThe bank has not done any foreign exchange business, nor does it have any foreign exchange assets/ liabilities.
4. Investments 4.1. In accordance with the extant instructions issued by Reserve Bank of India for the
purpose of valuation of Investments, the Bank has classified its Investment portfolio
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29
as at 31st March, 2013 into the following two categories: a) Held to Maturity: Investments under this category are carried at their book
value. Any premium on acquisition of a security is amortized over the balance period to maturity.
(b) Available for Sale: Investments in the category are valued at market rate and net depreciation in the category, if any, is provided for. Net appreciation, if any, is ignored.
4.2. The Investments have been disclosed in the Balance Sheet as under: (a) Central and State Government Securities (b) Shares of Co-operative Institutions (c) Other Trustee Securities (d) Other Investments
4.3. Market Value of Central and State Government Securities is determined in terms of Yield to Maturity method indicated by Fixed Income Money Market Dealers Association (FIMMDA).
4.4. The Amortization of premium on investments in Held to Maturity category is calculated on days basis to maturity.
4.5. Nil provision is required to be made for Depreciation on Investment under Available for Sale category as on 31st March, 2013 (previous year Rs. 2,54,016.00).
4.6. Investment Fluctuation Reserve is being created as per the extant instructions of RBI.
5. Loans and Advances 5.1. (a) The classification of advances into Standard, Sub-standard, Doubtful & Loss
assets as well as provision on non-performing advances has been arrived at in accordance with the extant instructions issued by the Reserve Bank of India with regard to Income Recognition and Assets Classification (IRAC) from time to time and as applicable for preparation of this Balance Sheet.
(b) In addition to this, a general provision on standard assets is also made as per the
extant instructions issued by Reserve Bank of India i.e. @0.40% of the outstanding amount on a portfolio basis except in the case of direct advances to agricultural and SME sector which has been @0.25%. The bank does not have any advance under Commercial Real Estate sector, which would have attracted provisioning @1%.
5.2. The overdue interest in respect of non-performing advances is provided separately
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30
under “Overdue Interest Reserve” in accordance with the extant instructions issued by Reserve Bank of India.
6. Fixed Assets and Depreciation 6.1. Fixed Assets are stated and carried in the Balance Sheet at written down value,
purchase/ additions during the year less depreciation for the year thereon. Cost includes incidental expenses incurred on acquisition of assets.
6.2. Fixed Assets are depreciated at the rates mentioned below :(a) Furniture and Fixtures : 15%(W.D.V.)(b) Office Equipments: 15%(W.D.V.)(c) Office Vehicles: 15%(W.D.V.)(d) Safe, Locker Steel Almirah: 2.5%(W.D.V.)(e) Computer Hardware & Software: 33.33% (Straight Line)(f) Temporary Structures: 100%
6.3. Depreciation on assets purchased in the first 6 months of the year is provided at full rates. Depreciation at 50% rates is provided for fixed assets purchased in the last 6 months of the financial year. Depreciation on assets sold during the year is charged up to the date of sale.
6.4. Depreciation on assets, where cost of each item is under Rs.5,000/- is provided @ 100% in the year of purchase itself.
6.5. There has been no change in method and rates of providing depreciation as compared to the previous year.
7. Revenue Recognition (Accounting Standard AS-9)7.1. Items of income and expenditure are generally accounted for on accrual basis. 7.2. Income from non-performing assets is recognized to the extent realized, as per the
extant instructions issued by Reserve Bank of India. 7.3. Dividend received from shares of co-operative institutions is accounted on receipt
basis.7.4. Interest on overdue fixed deposits is provided on ad-hoc basis in accordance with the
extant instructions of RBI. Actual interest expense is accounted for at the time of renewal of FDR
7.5. There are no material prior period item's included in Profit and Loss account.7.6. Certain items of income such as Locker Rent, loan processing fee are recognized on
cash basis. The quantum of such income is not material. 8. Non-Performing Assets
8.1. Non-Performing assets of the bank have been identified and provision thereon has
A Bank for Your Welfare
31
been made as per the extant instructions of Reserve Bank of India.8.2. Any advance including Bills Discounted, which became Non Performing Assets at the
close of the year, interest accrued and credited to income account is reversed or provided for, if the same is not realized.
8.3. Interest accrued on NPA is not shown as income but shown as “Overdue Interest Reserve” in the Balance-sheet.
9. Employee Benefits (Accounting Standard AS-15)
9.1. The liability towards gratuity is assessed and calculated on actuarial valuation and paid every year to L.I.C. of India as Employees Group Gratuity Scheme.
9.2. Bank's Contribution towards provident fund is paid every month to Commissioner of Provident Fund in accordance with the provisions of Employees Provident Fund Scheme, 1952 and Employees Pension Fund Scheme, 1995.
9.3. Leave encashment is accounted on actual payment basis.9.4. The bank does not have any scheme of LTC for its employees, however a regular
taxable allowance in this regard is being paid as a part of salary. 10. Reserve Fund and Other Reserves
10.1. Dividend remaining unclaimed over 3 years are transferred to Statutory Reserve Fund a/c.
10.2. Nominal Membership and Entrance Fees are transferred to Statutory Reserve Fund every year.
11. Taxation
11.1. Income Tax expense comprises of Current Tax. Current Tax is provided on the Taxable Income using applicable Tax Rates and Tax Laws.
11.2.Deferred Tax Liability in accordance with AS-22 (Accounting for Taxes on Income) has been recognized, as per the details given below:
Due to Depreciation
For period up to 31st March 2012
For the year 2012-13
As on 31st March 2013
2,93,089
2,24,376
5,17,465
(C) DISCLOSURES AND NOTES ON ACCOUNTS:
1.Disclosure As Per the extant instructions of Reserve Bank of India:
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1.5 Advances of Rs. 2,20,08.05 Lacs (Previous year Rs. 1,45,18.74 Lacs) shown in the
Balance Sheet include:
1.1
1.2
1.3
1.4
Sr. No. Particulars 31.03.2013 31.03.2012
Capital to Risk Asset Ratio (CRAR)
a. Movement of CRAR (Basic Points)
b. Risk Weighted Assets
Values of Investments are as under:
A. Government / Approved Securities (SLR)
a. HELD TO MATURITY
Face Value
Book Value
b. AVAILABLE FOR SALE
Face Value
Book Value
Market Value
B. Other Investments (Non SLR)
Shares of Co-operative Institution
Other (Book Value)
Other (Market Value)
Advances against Shares & Debenture
14.28%
0.76%
20375.02
5,625.00
5,640.16
1,625.00
1,625.99
1,653.59
0.02
494.72
497.61
NIL
13.52%
0.17%
13189.38
5,300.00
5,313.69
1,545.00
1,537.13
1,534.02
0.01
49.72
50.57
NIL
Amount in Rs./Lacs
ParticularsFUND BASED NON FUND BASED
31.03.13 31.03.12 31.03.13 31.03.12
i) Advances against Real Estate,
Construction Business, Housing
ii) Advance to Directors
iii) Advance to Relatives of Director
& Companies / firms in which
they are interested
iv) Advances to Chairman
6,017.31
Nil
Nil
Nil
3,777.44
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
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33
1.6
1.7
1.8
1.9
1.10
Sr. No. Particulars 31.03.2013 31.03.2012
Average Cost of Deposits
a. Gross NPAs
b. Net NPAs
Movement in NPA
Opening Balance
Add : Additions during the year
Less : Closed/ Recovered/ Written off
Closing Balance
a. Interest income as a percentage of working funds
b. Non-interest income as a percentage of working
funds
c. Operating profit as a percentage of working funds.
d. Return on Assets
e. Business (Deposits + Advances) per employee
f. Profit per employee (Before Tax)
g. Profit per employee (After Tax)
a. Provision on NPAs required to be made
b. Provision on NPAs actually made
C. Provisions on depreciation in investments
required to be made
d. Provisions on depreciation in investments
actually made
e. Provision on Standard Assets required to be made
f. Provision on Standard Assets actually made
8.13%
50.99
-
34.71
156.57
140.28
50.99
10.66%
0.53%
1.07%
1.03%
345.22
2.06
1.39
7.61
52.77
-
-
70.93
72.49
7.40%
34.71
30.43
181.54
46.74
193.57
34.71
9.30%
0.73%
1.22%
1.17%
403.06
2.83
2.08
4.28
4.28
2.54
2.54
47.39
47.39
2. Related Party Disclosure (Accounting Standard AS-18)A. List of the related parties and their relationship
Name of the party Relationshipa. Key Managerial Personnel 1. Shri Yashvir Kumar Gupta Chairman
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34
b. Relatives of the Key Managerial Personnel 1. Shri Suveer Kumar Gupta Son of Shri Yashvir Kumar Gupta2. Smt. Swarn Lata Gupta Wife of Shri Yashvir Kumar Gupta3. M/s Yashvir Kumar Gupta HUF HUF of Shri Yashvir Kumar Gupta
B. Details of transactions with the related parties carried out on an arm's length basis.
S. No.
Salary paid
Rent paid
1.
2.
Nature of the transaction
Relatives of Key Managerial Personnel
Relatives of Key Managerial Personnel
31st March 2013
11,78,240
9,43,500
31st March 2012
10,86,440
9,30,000
3. Leases (Accounting Standard AS-19)The bank has cancelable operating lease and the disclosures under AS 19 on 'Leases' issued by ICAI are as follows:i) Lease rent payments of Rs. 65,76,542/- (Previous Year Rs. 41,22,324/-) have been
recognized in the statement of profit and loss for the year ended March, 2013.ii) The lease agreements entered into pertain to use of premises by the bank. The lease
agreements do not have any undue restrictive or onerous clauses other than those normally prevalent in similar agreements.
4. Intangible Assets (Accounting Standard AS-26)
Details of Computer Software included in Other Assets in accordance with AS-26 on Intangible Assets issued by the ICAI are as under:
Opening balance as on 01.04.2012
Additions during the year
Less : Amortization/ Depreciation
Closing balance as on 31.03.2013
0.89
31.20
6.02
26.07
5. Impairment of Assets (Accounting Standard AS-28)The process of ascertaining the value of impaired assets, if any, in accordance with Accounting Standard 28 is under progress at the bank and these shall be impaired & written off with the approval of the Board in current financial year.
(Amt. in Rs./ Lacs.)
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6. Provisions, Contingent Liabilities & Contingent Assets (Accounting Standard AS-29)
(Amount in Rs./Lacs)
(Bank Guarantees are 100% secured against tangible securities.)
7. Segment reporting (Accounting Standard AS-17):There is only one segment namely “Banking”.
8. Details of Other Investments:8.1.Other Investments of the bank comprise the following items:
Bank Guarantees
1.
2.
3.
4.
5.
Particulars
Particulars
31/03/2013
Amount (Rs)
31/03/2012
Remarks
149.44 120.65
S. No.
HDFC Debt Cancer Fund
IDBI Liquid Growth Fund
Shares of District Co-operative
Bank Ltd., Saharanpur
Shares of Indore Premier Central
Co-operative Bank Ltd., Indore
8.30% Tax-free Bonds issued by
National Highways
Authority of India
50% of the dividend declared in
this Mutual Fund is utilized
torwards helping cancer patients.
5,00,000
4,65,00,000
1,000
1,000
24,72,000
8.2. All the investments under this head are within limits defined as per the extant instructions of RBI.
8.3. Investments under this head have been valued at the lower out of book value and market value.
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As per our report of even date attachedFor G.P. Gupta & Co.Chartered Accountants
9. Statutory Liability The Bank had a statutory liability, towards Education Fund of Rs. 2,01,851/- which had to be paid to The National Co-operative Union of India Ltd., New Delhi under The Multi-State Co-operative Societies Act, 2002 towards appropriation made for the same in the year. The payment was made on 26th Sep., 2012.
10. Previous year figures have been regrouped and recasted wherever considered necessary to make them comparable with those of current year.
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37
Proposed Appropriation :
APPROPRIATION OF PROFITS FOR THE YEAR 2012-13
Accumulated Profit of previous years
Loss from Malwa Bank of Indore
Profit for the year 2012-13
Total profit available for appropriation
88,22,984.63
(17,061.80)
2,17,12,164.27
3,05,18,087.10
OpeningBalance*
RemarksProposed
AppropriationClosingBalance
Statutory Reserves
Education Fund
Contingency Reserve
Investment Fluctuation Reserve
Share Transfer Fund
BDDR (NPA)
Contingent Provision on
Proposed Dividend @ 12%
Total Appropriation Amount
Accumulated Profit C/F to
Standard Assets
next year
2,83,93,162.00
-
44,92,880.00
35,35,624.00
50,00,000.00
52,77,621.00
72,48,891.00
-
-
-
54,28,041.00
2,17,122.00
21,71,216.00
-
-
-
-
1,49,31,528.00
2,27,47,907.00
77,70,180.10
3,38,21,203.00
2,17,122.00
66,64,096.00
35,35,624.00
50,00,000.00
52,77,621.00
72,48,891.00
1,49,31,528.00
25% of current year's Profit(Mandatory as per Multi-StateCo-operative Societies Act, 2002
1% of current year's Profit(Mandatory as per Multi-StateCo-operative Societies Act, 2002
10% of current year's Profit(Mandatory as per Multi-StateCo-operative Societies Act, 2002
Last year's dividend amount wasRs. 1,02,35,473 @ 12%
Opening Balance of Reserves includes the balance transferred from Malwa Bank, Indore*
38
BUDGET OF THE BANK FOR F.Y. 2014-15
Expenditure
Interest on Deposits & Borrowing
Salary
Rent, Electricity, Telephone, Insurance
Repair, Maintenance, Depreciation
Publicity, Stationary
Audit, AGM, Consultancy
Miscellaneous Exp.
Income Tax & Provisions
Net Profit
TOTAL
Rs. in Lacs
AmountAmountIncome
Interest on Loans
Interest on Investments
Miscellaneous Income
TOTAL
A Bank for Your Welfare
4,400
1,600
350
6,350
3,850
750
400
150
70
95
155
280
600
6,350
TARGETS OF THE BANK FOR F.Y. 2014-15(Rs. in Crores)
Branches
Deposits
Loans & Advances
Share Capital
Membership
New Schemes
Net Profit (after Tax)
DescriptionTargets approved forcurrent year 2013-14
in last AGM
Proposed revision ofTargets for current
year 2013-14
Proposed Targetsfor the year 2014-15
As per Requirement
400
240
14
9000
As per Requirement
4
21
600
400
40
10000
As per Requirement
6
18
450
300
35
9000
Forex, Direct RTGS, Net Banking
4
Shivalik Mercantile Co-operative Bank Ltd. was registered as a Co-operative Society under Uttar Pradesh
Co-operative Societies Act, 1965 in 1997. It was granted the license to conduct banking business as a Primary
Urban Co-operative Bank in the district Saharanpur by Reserve Bank of India in September, 1997. The Bank
started operations on 5th September, 1998 and has registered constant growth since then. Presently the bank is
rated amongst the best Urban Co-operative Banks in the state.
Subsequent to achieving a deposit base of more than Rs. 100 crores on 31st March, 2010, the bank was
recognized as a Tier-II bank and was allowed to extend its area of operation to entire state of Uttar Pradesh.
The bank has constantly been endeavouring to expand and had taken over an Urban Co-operative Bank by
the name of Bhoj Nagrik Sahakari Bank Maryadit at Dhar, Madhya Pradesh. As a result of this merger, which was
effective on 1st November, 2010, the bank was de-registered from the state Government (UP Co-operative
Societies Act, 1965) and was re-registered under the Central Government (Multi-state Co-operative Societies
Act, 2002) under the overall control of the Central Registrar of Co-operative Societies, Ministry of Agriculture &
Co-operation, New Delhi. Shivalik Bank thus became the first Multi-state Urban Co-operative Bank of the state
of UP.
Continuing the saga of inter-state expansion, Shivalik Bank again took over a weak co-operative bank,
Malwa Commercial Co-operative Bank Ltd. in Indore, MP. The merger was made effective on 1st September,
2012. Thus Shivalik Bank got a second branch in the state of Madhya Pradesh.
The Bank is fully computerized under CBS environment and has fifteen branches at present, out of which ten
are located within District Saharanpur, one each at Meerut, Ghaziabad and Noida, and one each at Indore &
Dhar in Madhya Pradesh.
The Bank is managed by a Board, which is well diversified, reputed and experienced in their field. The Board
comprises persons from all walks of society viz. Industrialists, Agriculturists, Traders, Professionals, Chartered
Accountants, Retired Senior Bank Personnel etc. The phenomenal growth & excellent reputation of the bank is
much accredited to the personal reputation and fame enjoyed by its Chairman & the Board of Directors, apart
from the professional management style of the Bank.
The bank has its head-quarters at Saharanpur, which is located at the junction of UP, Uttrakhand, Haryana &
Himachal Pradesh. The population of Saharanpur is approximately 5 lakhs as per census 2001. The main
activities include trading, agriculture, handicrafts & small industries. Saharanpur is famous for its wood carving
work and wooden articles are exported all over the world from here. Some very reputed industries like I.T.C. and
Star Paper Mills Ltd. are also located here.
A few of our major achievements are as follows.
39
OUR PROFILE AND ACHIEVEMENTS
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A Bank for Your Welfare
40
MANAGEMENT:
wThe Bank has maintained highest norms of account keeping and has been very prompt in finalizing its
annual accounts and getting it audited. The bank feels pride that the Balance-Sheet of the bank is ready on
1st of April every year after finalizing annual accounts.
wThe IT awareness is very high in our bank. This is also due to the fact that the Chairman and the CEO of the
Bank are engineers with work experience with M/s Hindustan Aeronautics Limited and M/s Tata
Consultancy Services respectively.
wThe bank tends to manage its business in a very professional and transparent manner. We are regularly
publishing our results/policies/interest rates/charges etc. on our website apart from displaying them in our
branches.
wAll the senior personnel of the bank are IT conversant and make extensive use of technological
communication modes such as email and video conferencing, which enables fast and cheap
communication. The bank is gradually moving towards the 'paperless office' concept.
TECHNOLOGY INITIATIVES & INNOVATION:
wWe have professionalized our management by having full computerization, and by employing well-qualified
staff. We have successfully implemented 'Core Banking System', thereby providing any branch banking to
all our customers. At one time our bank was the first fully computerized bank of District Saharanpur. Further
the installation of CBS and use of technology has also enabled the bank to provide Internet Banking to its
customers. Very soon, Mobile Banking is also going to be launched.
wThe Bank is successfully connected to the country-wide ATM network, 'Rupay' managed by NPCI. As a
result, the customer of Shivalik Bank can use their ATM cards not only at our own ATMs but also at the ATMs
of all other banks. Incidentally, all branches of the bank are (/going to be) equipped with ATMs and cash
deposit machines.
wThe bank is also participating directly in the RTGS/NEFT transactions as a sub-member of IDBI Bank Ltd.
wThe bank constantly looks forward to innovations in banking. Apart from participation in RTGS/NEFT
network, the bank has arrangements with leading private commercial banks for issue of 'at-par cheques' to
facilitate remittances for its customers and for speedy collection of outstation instruments of its customers.
wAn I.T. department has also been set up at the Bank and we are providing computer training to our staff
officers also to keep them abreast of all relevant innovations and advancements in technology.
OPERATIONS:
wWithin a short span of about 15 years, the total business of the bank has grown to approximately Rs. 650
crores with the deposits at Rs. 320 crores, the advances at Rs. 220 crores and investments at Rs. 110
crores.
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41
wThe Owned Funds of the bank have grown from Rs. 15.50 lacs as on 5th September, 1998, the bank's
opening day, to a net worth of more than Rs. 30 crores as on 31th March, 2013. This shows the trust our
shareholders and the public have in the bank.
wThe Bank has been in profit from the very first year of its working and has shown constant growth. The bank
has continuously been paying a dividend of 12% to its members.
wThe share of Government or large institutions in the deposit base of the Bank is very little. The Bank relies on
the trust and confidence that individual investors have placed in it. As a result the customer base of the Bank
has well exceeded 40,000 in number.
REGULATORY COMPLIANCE:
wThe Bank has been strictly following the guidelines issued by RBI in all of its operations and the working of
the bank was highly appreciated by the officials of RBI during the course of RBI inspections, the latest being
in April, 2012. The Inspection reports received from RBI have been highly satisfactory and very appreciative
of bank's overall performance.
wThe Bank neither makes any investments in the shares/debentures nor does it give any advances against
the security of shares/debentures i.e. the exposure of the bank towards share/debentures market is Nil.
wThe Capital to Risk Assets Ratio of the bank, has constantly remained more than 12% and presently is
14.28% as on 31.03.2013.
wThe audit classification of the bank has continuously been "A" since inception.
wThe bank has successfully met the targets for maintenance of SLR through investments in Government and
Approved Securities as per RBI norms.
wThe Bank is regularly maintaining the required ratio of 40% of total financing to Priority Sector.
FINANCIAL INCLUSION:
wThe bank is pioneering in the Co-operative Sector towards efforts made for Financial Inclusion. We have
taken a great initiative by starting micro-finance to self-help groups. To run this efficiently we have entered
into partnership with an NGO, which provides livelihood development trainings to members of SHG apart
from training them in better money management. Almost all members of these groups are women belonging
to BPL category with many groups inhabited by women belonging to minority community.
wTill date the bank has linked 3000 SHGs comprising app. 35,000 individuals to its microfinance program. The
total amount disbursed by the bank to these SHGs is Rs. 6.50 crores as on date with almost nil NPA. These
figures are increasing at a rapid rate.
wThe bank has initiated a program to appoint BCs in rural areas to provide banking services to rural masses.
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OUR CUSTOMER SERVICE INITIATIVES
The Bank has earned an excellent reputation for providing good customer service and
utilization of latest technological enhancements. The bank is providing some very innovative and
customer friendly services to its clients. Some of these are home banking, tele-banking, prompt issue
of remittance instruments, same day payment of local clearing instruments, promptness in outstation
collection, extended working hours etc.
A List of Customer Service initiatives taken by the bank is as follows:
Extended working hours: Our branches are open for customer dealing and locker operations
from 10 am to 5 pm on weekdays and from 10 am to 2 pm on Saturdays. Also, all the staff at a branch
does not take lunch/tea breaks together, so that the customer service does not stop even during
lunch hours.
Entertaining of late customers: If a customer walks in after 5 pm (close of business hours), we
entertain him by marking his transactions for the next business day. Such transactions are recorded
in the registers/systems duly provided to the branches and are executed after day open on next
business day.
May I Help You counters: All our branches are equipped with a 'May I Help You'/'Inquiry' counter,
which help the new customers to get their work done without any delay or confusion. The staff sitting
at these counters are well trained to handle inquiries, suggestions and help in filling up forms etc
Drop-box for Clearing Cheques: All our branches have installed a drop-box where a customer
can drop a cheque intended for clearing/transfer 24 hours a day. This box is securely locked and is
taken care of by the 24 hour guard. All cheques received during the night are taken up for
clearing/transfer the next day. This way the customers can save one day in clearing transactions.
Passbook Printer: All our branches are equipped with passbook printers, so that customers get
neat and legible passbooks updated instantly.
Currency counting machines: All our branches are equipped with adequate number of
currency-counting machines so that the work of the customer is attended to within the shortest time
possible.
SMS Alerts facility: We provide free SMS alerts to our customers for all transactions made in
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their accounts. The information provided in the alerts includes transaction type, amount, date, closing
balance and transaction information.
Camera for customer's photo: All our branches have been provided with a portable camera so
that customers need not submit their passport size photographs. The branch officials directly click
their photographs and get it printed.
Photocopy machine: The branches are equipped with photocopy machines so that customers
do not have to go out to get copies of their documents done.
Availability of Stamp papers: For use in loan documentation, the bank directly purchases
stamp papers from the Government Treasury and gets the cost reimbursed from the customer. This
way the customers neither have to run around in search of stamp papers nor do they have to pay
commissions to private vendors to purchase stamp papers.
Personalized service: The bank keeps a track of its good customers and provides personalized
services to suit individual needs. We try to delight the customer by bonding with him strongly. The
bank wishes its good customers on their birthdays, anniversaries and special occasions.
Home/Telephone banking: We entertain our customers over telephone and take their
telephonic requests. Based on their telephonic requests their account statements/ drafts/ cheques/
other documents are delivered/ picked up from their homes/ offices. We also accept service requests
over e-mail. We also arrange to get the accounts opened/ documentations done at customers' homes
in case customer is unable to come to the bank.
Branch infrastructure: It may also be noted that we have provided excellent branch
infrastructure to enhance customer satisfaction. Our branches are equipped with air conditioning,
clean toilets, proper waiting lounges, availability of drinking water etc.
Technology: We have installed suitable CBS software to enhance customer satisfaction. The
software provides any counter operation, any branch banking etc. We are also connected with the
'Rupay' network for ATMs and to NFS for RTGS/NEFT as a sub-member through a leading bank.
Customer oriented banking procedures: We have strong customer oriented banking
procedures that ensure that the customer feels pleasure in dealing with us. For example whenever a
new customer approaches the bank we get his KYC formalities done once and later whenever he/she
approaches the bank again, we refer to his earlier ID and do not ask for documents again & again.
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Security: We take utmost care to instil faith and trust in our customers by keeping all our
premises safe & secure. We have taken the services for Ex-Army-men Welfare Association to
provide strong and capable security guards, all our premises are CCTV enabled and are closely
monitored.
The Bank has achieved a high level of satisfaction for all its stakeholders viz. the Shareholders,
the Customers, the Staff and the Regulating Authorities.