Directors Reports


Dear members,
Your directors have pleasure in presenting the 20th Annual Report, of our Bank together with the Audited
Balance Sheet, Profit & Loss Account and Auditors’ report for the year ended 31st March 2019.
The Banking industry in general was in very difficult situation and many of the fundamentally strong banks
were in losses due to various reasons. Our Bank also faced such difficult circumstances / situations and
overcome the situations.


The membership has increased by 1 New Members from 6202 as on 31.03.2018 to 6203 as on 31.03.2019. Capital is increased by Rs. 14.05 Lakhs, from Rs. 314.92 Lakhs to Rs. 328.97 Lakhs as on 31.03.2019.



The break-up of the deposits are as under:
(`in Lakhs)
As on 31.03.2018 As on 31.03.2019 % Growth
A. Current Deposits                                   Rs.           626.29 Rs.         207.49 66.87
B. Saving Deposits                                     Rs.         620.98 Rs.         380.69 -38.69
C. Fixed and Other

Term Deposits                                            Rs.        3679.36


Rs.       3856.03



Total                                                            Rs.         4926.63 Rs.       5444.21 10.51

The increase in current deposits are due to marketing of our technologically upgraded products like SMS Alerts, RTGS, NEFT, Tax Payments, introduction of Debit Cum ATM Cum Privilege Card, Seeding of Aadhaar Card etc and customer Service.

Average cost of Deposits for the period is improved to 9.91 % as against earlier period level of 8.07 %. The deposits have been insured and DICGC premium fee is paid upto date

Mix of Deposits
31.03.2018 31.03.2019
A. Current Deposits 12.71 % 3.81%
B. Saving Deposits 12.60 % 6.99%
C. Term Deposits 74.69 % 9.20%
Total 100.00 % 100.00 %


Your Directors are striving very hard to increase low cost deposits to improve the profitability of the Bank and more efforts shall be put in the current year to have a very healthy mix of the deposits.


The loans and advances of the Bank as on 31.03.2019 are Rs. 3564.54 lakhs as against Rs. 3486.42 lakhs last year, recording a increase of Rs. 78.12 lakhs with a growth rate of 2.24 % due to increase in qualitative advances and large borrowal accounts. The Bank’s Credit Deposit Ratio is 65.47 %, which indicates efficient deployment of lendable funds.


During this year your bank has the overall aggregate Business of Rs. 9008.75 lakhs.


The Bank held the following investments as on 31.03.2019

Government Securities Rs. 17.08.21 lakhs
Mutual Funds. Rs. 520.00 lakhs
Fixed Deposits Rs. 210.71 lakhs





2438.92 lakhs


The minimum stipulation of 19.5 % 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 improved considerably.


Due to our best efforts, our Gross NPAs are considerably decreased from 2.55% to 1.89% and Net NPAs Nil NPAs during 2018-19. In absolute terms, Gross NPAs are considerably decreased to Rs. 67.73. lakhs against Rs. 89 lakhs of last year and Net NPAs are nil. The reductions in NPAs is mainly on account of materilisation of Public Auction of securities.

Gross NPA : 31/3/2018 Rs. 89 lakhs 2.55%
31/3/2019 Rs. 67.23 lakhs 1.89%
Net NPA 31/3/2018 Rs. Nil Nil
31/3/2019 Rs. Nil Nil



Our Bank’s establishment expenses are: Rs. 54,12,495/- as against Rs. 48,12,600/- of last year.

Actuals as against Permissible limit
a). On Working Capital 0.84 % 2 %
b). On Gross Profit



23.61 % 30  %


Your Bank has earned a Net Profit before tax of Rs. 97.74 lakhs for the financial year 2018-2019 where as it was Rs. 97.47 lakhs last year . The net profit after tax stood at Rs. 66.78 lakhs in the Financial year 2018-2019 as against Rs. 67.16 lakhs of last year.


After proposed appropriations from the profit for the year 2018-2019, the position of Reserves and Funds of the Bank are as shown below:

(Amt In Lakhs)

As on 31.03.2018 Addition after proposed appropriation As on 31.03.2010 %


1. Statutory Reserve Fund 255.09 16.70 271.79 6.55
2. General Reserve Fund 354.34 7.29 361.63 2.06
3. Other Funds 21.44 1.91 23.35 8.91
4. Special Reserve fund U/s 36(1)(VIII) 19.49 3.66 23.15 18.78
Total 650.36 29.56 679.92 4.54


20th Annual Report – 2018-19


The Working Capital of the Bank is as under:

31.03.2018 31.03.2019
Share Capital Rs. 314.92 Lakhs Rs. 328.97 Lakhs
Reserves (Free) Rs. 650.36 Lakhs Rs. 679.92 Lakhs
Deposits Rs. 4926.63 Lakhs Rs. 5444.21 Lakhs
—————— ——————
Total: Rs. 5891.91 Lakhs Rs. 6453.10 Lakhs
—————— ——————
Less: Fixed Assets Rs. 29.70 Lakhs Rs. 24.15 Lakhs
Total: Rs. 5862.21 Lakhs Rs. 6428.95 Lakhs

The working capital of our bank has increased by Rs. 566.74 Lakhs due to reduction is aggregate deposits. The Net Worth of the Bank is improved from Rs. 956.10 lakhs to Rs. 998.47 lakhs with a marginal growth  of 4.43 % .

We are happy to mention that CRAR (Capital to Risk Assets Ratio) of our Bank for the year is 25.36 % indicating more stability. As per RBI directives the minimum CRAR should be 9 % and our capital adequacy ratio is much higher, which is a very healthy sign.


Your directors have great pleasure in proposing a DIVIDEND @ 14 % for the year 2018-2019. This is subject to approval of share holders. Our Bank declared a dividend of 14 % last year. We hope next year our working will further improve.


Concurrent audit is being carried out in the Bank, in addition to Statutory Audit. We  have appointed  M/s. B. Nagaraja Rao & Associates, Chartered Accountants to conduct Statutory Audit of the Bank for the year 2018-2019. Your directors are pleased to inform you that bank is classified as ‘A’ grade, in audit classification, continuously for the 18th year in a row.


Maintaining the tradition, our Bank extended help by way of donations to various philontropic organsations who are extending help to the needy persons as well as widows, orphans, students and weaker sections of the Society.


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 programmes conducted by Telangana Federation for Co-operative Banks and external training institutes like Vaikunth Mehta National Institute, College of Agriculture Banking, Pune.


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 premises from 3 PM to 5 P.M. Thus we could bridge the gap between bank and the customers.


The Bank has tried to fully follow the KYC Norms as prescribed by RBI.


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 03.2019 is improved to

25.36 % as against minimum norm of 9% stipulated by RBI.

  1. The Net Profit after tax is reached Rs. 78 lakhs which is satisfactory.
  2. The Profit per employee has reached to a level of Rs. 45 lakhs.
  3. The Productivity/Business per employee is at satisfactory level of Rs. 58 lakhs which shows good productivity.
  4. Our lending to Priority Sector is satisfactory and in conformity with RBI directives. Our lending to Priority Sector as at 31.03.2019 was Rs. 12 lakhs constituting 78.89 % of aggregate advances, surpassing the RBI target of 40 %.
  5. The gross P.A. is reduced from 2.55% to 1.89%, Net NPA is Nil which are well within the RBI norms.


In view of the present economic scenario and policies of RBI, your directors have estimated a pre-tax profit of Rs. 106.85 lakhs and net profit after tax i.e., Rs. …………. lakhs for the current year 2019-2020 as per Budget Proposal for your approval.


The 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 Coop Urban Bank” federation limited. Thanks to valued customers and members for their continued support, confidence and trust reposed in our Bank.

The Board also wishes to place on record its 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 and for the guidance and unstinting support.

Hyderabad                                                                                      (AJIT GUPTA)
Date: 23-08-2019                                                                          Chairman