Dear Members,

Your directors have pleasure in presenting the 24^thAnnual Report, of our Bank together with the Audited Balance Sheet, Profit & Loss Account and Auditor’s Report for the year ended 31st March, 2023.

     MEMBERSHIP AND SHARE CAPITAL

The net membership had increased marginally from 6210 as on 31-03-2022 to 6265 as on 31-03-2023. Capital is nominally increased by Rs.25.91 Lakhs, from Rs.328.22 lakhs to Rs.354.13 Lakhs on 31-03-2023.

BANK’S  PERFORMANCE DEPOSITS
The Break-up of the deposits are as under:		(Rs. inLakhs)
As on 31.03.2022	As on 31.03.2023	% Growth
A. Current Deposits                                      Rs.     369.83	Rs.   187.07	-49.41
B. Saving Deposits                                         Rs.     496.23	Rs.    448.64	-9.59
C. Fixed and Other                                        Rs.   5706.61	Rs.   5274.06	-7.58
Total                     Rs.   6572.67	Rs.   5909.77	-10.09

Average cost of Deposits for the period is 6.99% as against earlier period level of  7.85%.

Return on Advances for the period 2022-2023 is 12.99%

The deposits upto Rs.5,00,000 have been insured and DICGC premium fee is paid up-to-date.

MIX OF DEPOSITS
	As on 31.03.2022	As on 31.03.2023
A. Current Deposits	5.63%	3.17%
B. Saving Deposits	7.55%	7.59%
C. Fixed and Other	86.82%	89.24%
Total	100.00%	100.00%

The level of core deposit as on 31.03.2023 are 10.76%.

LOANS AND ADVANCES:

The loans and advances of the Bank as on 31.03.2023 are Rs.3710.05 Lakhs as against Rs.3673.47 Lakhs last year, recording a net increase of Rs.36.58 Lakhs. The Bank’s Credit Deposit Ratio is 62.78% which is satisfactory and indicates good deployment of lendable funds.

AGGREGATE BUSINESS:

During this year your bank has done the overall aggregate Business of Rs.9619.82Lakhs.

INVESTMENTS:

The bank held the following investments as on 31.03.2023

Government Securities                                  Rs.2185.41 lakhs

Non SLR Securities                                            Rs.  405.04 lakhs

Fixed Deposits+call money                          Rs.  431.82 lakhs

        ________________                  

Total                                                                          Rs.3022.27 Lakhs

                                                                                                                                          

 

The minimum stipulation of 18% in Government securities to meet the SLR is adhered to by our Bank, it may be observed that the entire investments are in government and other approved securities only.

The surplus funds were properly deployed for better yield thereby our other income is maintained satisfactorily.

NPA’s :

Due to our best efforts and due to present situation our gross NPAs marginally increased from 1.84% to 2.06% and Net NPAs Nil during 2022-23 also. In absolute terms, Gross NPA’s are

Substantially increased to Rs.76.32 Lakhs against Rs.67.60 Lakhs of last Year.

 

Gross NPA :	31.03.2022	Rs.   67.50 Lakhs	1.84%
	31.03.2023	Rs.   76.32 Lakhs	2.06%
Net NPA :	31.03.2022	Rs. Nil	Nil
	31.03.2023	Rs. Nil	Nil

ESTABLISHMENT CHARGES :

Out Bank’s establishment expenses are Rs.65,47,703.00 as against Rs.57,89,992.00 of last year

Permissible Limit                     Actual

On Working Capital                                                  2.00%                                  0.85%

On Gross Profits                                                      30.00%                                27.71%

The expenses are in conformity with the 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.82.44 Lakhs for the financial year 2022-2023 where as it was Rs.116.44 Lakhs last year. The net profit after tax stood at Rs.60.93 Lakhs in the Financial Year 2022-2023 as against Rs.75.54 Lakhs of last year.

RESERVES AND FUNDS :

After proposed appropriation from the profit for the year 2022-2023, the position of Reserves and Funds of the Bank are as shown below:

(Amt. in Lakhs)

As on                                                                                                                                                                                                     31.03.2022		Addition after Proposed appropriation	Deduction During the Year	As on 31.03.2023	% Growth
1. Statutory Reserve Fund	314.35	15.23	0.00	329.58	4.85
2. General Reserve Fund	437.82	5.42	0.00	443.24	1.24
3.Other Funds	27.34	1.22	6.02	22.54	–
4.Special Reserve Fund-U/s36(1) (VIII)	23.15	–	0.00	23.15	0.00
Total	802.66	15.87	6.02	818.52	1.98

WORKING CAPITAL:

The Working Capital of the Bank is as under:

	31.03.2022	31.03.2023
Share Capital	Rs. 328.22   Lakhs	Rs.354.13 Lakhs
Reserves	Rs. 802.66   Lakhs	Rs.818.74 Lakhs
Deposits	Rs. 6572.66 Lakhs	Rs.5909.77Lakhs
Total	Rs. 7703.54 Lakhs	Rs.7082.64Lakhs
Less : Fixed Assets	Rs. 23.16     Lakhs	Rs.26.61 Lakhs
Total	Rs. 7680.38 Lakhs	Rs.7056.03 Lakhs

The working capital of our bank has decreased by Rs.­­­­­­­624.35 Lakhs due to decrease in aggregate deposits and Reserves. The Capital Funds of the Bank are improved from Rs.­­1109.17 Lakhs to Rs.1358.47 Lakhs with a growth of 22.48%. We are happy to mention that CRAR (Capital to Risk Assets Ratio) of our Bank for the year is also substantially improved from 28.83% to 29.84%, indicating more stability. 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 Bank has Declared and paid dividend of 12% on the share capital for the year ending 31.03.2022. For 2022-23 Financial Year dividend is proposed @ 7%.

AUDIT:

Concurrent audit is being carried out in the Bank, in addition to Statutory Audit. We have appointed M/s. DASA & SHAH, Chartered Accountants to conduct Statutory Audit of the Bank for the year 2022-2023 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 23  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, while continuing in the bank premises to attend to the customers. 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, bank has applied to RBI for Mobile Banking and submitted documents to NPCI to Launch UPI.

OTHERS:

We mention below the important achievements of our bank.

1. The CRAR (Capital to Risk Assets Ratio) under Basel II of our Bank as on 31.03.2023 is improved from 28.83% to 29.84% as against minimum norm of 9% stipulated by RBI.
2. Our lending to Priority Sector is satisfactory and is in conformity with RBI directives. Our lending to Priority Sector as at 31.03.2023 is Rs.2319.56 lakhs constituting 62.52% of aggregate advances, surpassing the RBI target of 40%.
3. The Net NPA is Nil during the current financial year also.

 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.99.75 Lakhs and net profit after tax i.e. Rs.73.58 lakhs for the current year 2022-2023 as per Budget proposal for your approval.

ACKNOWLEDGEMENT:

Shri D Lakshman Rao has resigned bank services and was relived on 14.12.2022, he was being paid al the retirements benefits.  Shri Nandkishor Baheti was appointed as CEO w.e.f 14.12.2022. He has banking experience of 47 years of which 17 years as CEO of various cooperative banks in Hyderabad.

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                                                                                                                                            (Ratan Gupta)

Dt:10.09.2023                                                                                                                                         Chairman