REPORT OF THE BOARD OF DIRECTORS COVERING PERIOD
FROM 1ST APRIL 2023 TO 31ST MARCH, 2024
Dear Members,
Your directors have pleasure in presenting the 25thAnnual Report, of our Bank together with the Audited Balance Sheet, Profit & Loss Account and Auditor’s Report for the year ended 31st March, 2024.
MEMBERSHIP AND SHARE CAPITAL
| Details | As on 31.03.2024 | Increase/Decrease |
|---|---|---|
| No. of Members | 6,306 | +41 |
| Amount of Share Capital (Rs. in Lakhs) | Rs. 412.30 | +58.17 |
BANK’S PERFORMANCE – DEPOSITS
| (Rs. In Lakhs) | ||
|---|---|---|
| Description | As on 31.03.2024 (+/-) | % Growth |
| A. Current Deposits | Rs. 117.51 (-69.56) | -37.18% |
| B. Saving Deposits | Rs. 439.54 (-9.10) | -2.03% |
| C. Fixed and Other Deposits | Rs. 6800.63 (+1526.57) | +28.94% |
| Total | Rs. 7357.68 (+1447.91) | +24.50% |
- Average cost of Deposits for the period is 7.47% as against earlier period level of 6.99%.
- Return on Advances for the period 2023-2024 is 12.39% as against earlier period 12.99%
- The deposits have been insured and DICGC premium fee is paid up-to-date.
MIX OF DEPOSITS
| Category | As on 31.03.2023 | As on 31.03.2024 |
|---|---|---|
| A. Current Deposits | 3.17% | 1.60% |
| B. Saving Deposits | 7.59% | 5.97% |
| C. Fixed and Other | 89.24% | 92.43% |
| Total | 100.00% | 100.00% |
- The level of core deposit CASA as of 31.03.2024 is 7.57%.
LOANS AND ADVANCES:
The loans and advances of the Bank as of 31.03.2024 are Rs.4980.31 Lakhs as against Rs.3710.05 Lakhs last year, recording a net increase of Rs.1270.26 Lakhs, recording growth of 34.24%. The Bank’s Credit Deposit Ratio is 67.69% which is satisfactory and indicates good deployment of lendable funds.
AGGREGATE BUSINESS:
During this year your bank has done an overall aggregate Business of Rs.12337.99 Lakhs, a growth of 28.26%.
INVESTMENTS:
The bank held the following investments as of 31.03.2024
| Amount (Rs. in Lakhs) | |
|---|---|
| Government Securities | 2293.80 |
| Non-SLR Securities | 404.48 |
| Fixed Deposits + Call Money | 708.50 |
| Total | 3406.78 |
mum stipulation of 18% in Government securities to meet the SLR is adhered to by our Bank. The entire investment are in government and other approved securities only.
The daily surplus funds were properly deployed in daily call money and short-term deposits for better yield there by our other income is maintained satisfactorily.
NPA’s :
Due to our best efforts and the present situation our gross NPAs decreased from 2.06% to 1.36% and Net NPAs Nil during 2023-24. In absolute terms, gross NPAs
decreased to Rs.67.60 Lakhs against Rs.76.32 Lakhs last year.
| 31.03.2023 | 31.03.2024 | |
|---|---|---|
| Gross NPA | Rs. 76.32 Lakhs (2.06%) | Rs. 67.60 Lakhs (1.36%) |
| Net NPA | Rs. Nil (Nil) | Rs. Nil (Nil) |
ESTABLISHMENT CHARGES :
Out Bank’s establishment expenses are Rs.78,43,556.00 as against Rs.65,47,703.00 of last year
| Permissible Limit | Actual | |
|---|---|---|
| On Working Capital | 2.00% | 0.90% |
| On Gross Profits | 30.00% | 28.07% |
The expenses are in conformity with Sec. 45(2) and Sec.116(c) of the Telangana State Co-operative Societies Act, 1964.
PROFIT & LOSS ACCOUNTS:
Your Bank has earned a Profit before tax of Rs.98.92 Lakhs for the financial year 2023-2024 where as it was Rs.82.44 Lakhs last year. The net profit after tax stood at Rs.73.99 Lakhs in the Financial Year 2023-2024 as against Rs.60.93 Lakhs of last year.
RESERVES AND OWN FUNDS :
After proposed appropriation from the profit for the year 2023-2024, the position of Reserves and Own Funds of the Bank are as shown below:
Statement of Own Funds :- share capital , Reserves and Provisions ( In Lakhs )
| Particulars | As on 31.03.2023 | Addition after Proposed Appropriation | Deduction During the Year | As on 31.03.2024 | % Growth |
|---|---|---|---|---|---|
| Statutory Reserve Fund | 329.61 | 20.39 | 0.00 | 350.00 | 6.19 |
| General Reserve Fund | 443.22 | 14.30 | 0.00 | 457.52 | 3.22 |
| Education Fund | 21.93 | 0.01 | 0.18 | 21.76 | 0.78 |
| Investment Fluctuation Reserve | 19.13 | 45.17 | 0.00 | 64.30 | 236.12 |
| Special Reserve Fund (U/s36(1) (VIII)) | 23.15 | 9.09 | 0.00 | 32.24 | 39.27 |
| Total | 837.04 | 88.96 | 0.18 | 925.82 | 10.61 |
WORKING CAPITAL:
The Working Capital of the Bank is as under:
| Particulars | As on 31.03.2023 (Rs. Lakhs) | As on 31.03.2024 (Rs. Lakhs) |
|---|---|---|
| Share Capital | 354.13 | 412.30 |
| Reserves | 818.74 | 954.90 |
| Deposits | 5909.77 | 7357.68 |
| Total | 7082.64 | 8724.88 |
| Less: Fixed Assets | 26.61 | 40.67 |
| Total | 7056.03 | 8684.21 |
The working capital of our bank has increased by Rs.1628.18 Lakhs due to increase in aggregate deposits and Reserves. The Capital Funds of the Bank are improved from Rs.1358.47 Lakhs to Rs.1360.79 Lakhs with a growth of 0.17%. The CRAR (Capital to Risk Assets Ratio) of our Bank for the year is 25.01%. As per RBI directives the minimum CRAR should be 9% and our capital adequacy ratio is much higher, which is very healthy sign.
DIVIDEND:
The last year Bank has declared and paid dividend of 7% on the share capital as on 31.03.2023. Financial Year 2023-2024 board recommend dividend on pro rata basis @ 10% and requested the General Body to approve unanimously.
AUDIT:
Concurrent audit is being carried out in the Bank, in addition to Statutory Audit. We have appointed M/s. ANANT RAO & MALLIK, Chartered Accountants to conduct Statutory Audit of the Bank for the year 2023-2024 after obtaining permission from RBI. Your directors are pleased to inform you that bank is classified as `A’ grade, in audit classification, continuously for the 24 year in a row.
HELP TO NEEDY (SOCIAL BANKING) :
Maintaining the tradition, our Bank extended help by a way of donations to various philanthropic organizations who are extending help to the needy persons as well as widows, orphans, students and weaker sections of the Society.
TRAINING AND DEVELOPMENT:
All the staff members were given training in various subjects to equip themselves and to achieve higher skills. The staff were also deputed to Seminars and training programs conducted by Telangana Federation for Co-operative Banks and external training institutes like Vaikunth Mehta National Institute, College of Agriculture Banking, Pune. In house training is imparted to the staff on Regular Basis.
CUSTOMER SERVICE:
We have designated exclusively an Officer to respond to the needs of customers on phone and at bank To give special attention. Chairman will be available along with other Directors on all Wednesdays in the bank’s premises from 11.30a.m. to 2.30 p.m. Thus we could bridge the gap between bank and the customers. In order to meet the customers’ requirements in digital banking towards technological updation.
We are glad to inform that the long waited Mobile Banking is available.
OTHERS:
We mention below the important achievements of our bank.
- The CRAR (Capital to Risk Assets Ratio) under Basel II of our Bank as on 31.03.2024 is 25.01% as against minimum norm of 9% stipulated by RBI.
- Our lending to Priority Sector is satisfactory and is in conformity with RBI directives. Our lending to Priority Sector as at 31.03.2024 is Rs.3098.08 lakhs constituting 62.21% of aggregate advances, surpassing the RBI target of 40%.
- The Net NPA is Nil during the current financial year also.
- Bank never failed in maintain CRR/SLR as per RBI
OUTLOOK FOR CURRENT YEAR:
In view of the present economic scenario and policies of RBI, your directors have estimated a pre-tax profit of Rs.115.38 Lakhs and net profit after tax i.e. Rs.86.44 lakhs for the current year 2024-2025 as per Budget proposal for your approval.
DIGITIZATION:
- Rupay Debit Card: Bank has Rupay Debit Card: – Customer can undertake all types of E-Com transactions and all bill payments.
- IMPS (Mobile Banking): We are glad to inform that long waited IMPS (Mobile Banking App) is ready with bank, customer can use their Registered Mobile to undertake IMPS Transactions at any time of the day, customer can get their account statement details of their deposits available with bank.
- UPI: We have immense pleasure to inform that our bank is live on UPI. The most popular payment mode like G pay, Phonepe, whatsapp pay, Airtel pay.
- POS Machine: Bank has issued POs Machine to our valued customers.
- SMS Alerts: SMS Alerts are sent on registered mobile of customer for the transaction.
- Customer are hereby requested to register correct mobile number to get
- Transaction Alerts.
- To avoid any Fraudulent Transactions.
- All Customers are requested to register correct email ID to get periodic Account statement.
ACKNOWLEDGEMENT:
Board acknowledges its deep gratitude to Reserve Bank of India and Department of Co-operation Government of Telangana State for their valuable support, guidance and encouragement.
The Board also acknowledges and sincerely thank for the timely guidance rendered by the Telangana State Co-operative Urban Banks’ Federation Limited. Thanks to valued customers and members for their continued support, confidence and trust reposed in our Bank.
The Board also wish to place on record it’s appreciation for the services rendered by the Officers and Members of Staff.
I will be failing in my duty if I do not thank my Co-Directors, Vice-Chairman and Advisor who have contributed in the growth of the Bank.
| Hyderabad Dt: 14.05.2024 |
(Ratan Gupta) Chairman |