Directors Reports


Dear Members,

Your directors have pleasure in presenting the 22nd Annual Report, of our Bank together with the Audited Balance Sheet, Profit & Loss Account and Auditor’s Report for the year ended 31st March, 2021.


The net membership had increased marginally from 6185 as on 31-03-2020 to 6204 as on 31-03-2021. Capital is nominally decreased by Rs.4.12 Lakhs, from Rs.332.65 Lakhs to Rs.328.53 Lakhs on 31-03-2021.


The break-up of the deposits are as under : (Rs. inLakhs)
As on 31.03.2020 As on 31.03.2021 % Growth
A.Current Deposits  Rs.  143.87 Rs.       276.98 92.52
B.Saving Deposits   Rs.  361.70 Rs.       513.77 42.04
C. Fixed and Other  Rs.   5224.04 Rs.     4904.48 -6.12
Total                       Rs.    5729.61 Rs.     5695.23 -0.60

The aggregate deposits are marginally decreased. However there is good increase in core deposits  / low cost deposits during the year under review.

The Current Deposits are increased by over  92 % and  Savings Deposits are increased by over 42 % which is  impressive.

Average cost of Deposits for the period is marginally decreased to 7.85% as against earlier period level of 8.07%. The deposits have been insured and DICGC premium fee is paid uptodate.

Mix of Deposits
As on 31.03.2020 As on 31.03.2021
A. Current Deposits 2.51% 4.86%
B. Saving Deposits 6.31% 9.02%
C. Fixed and Other 91.18% 86.12%
Total 100.00% 100.00%

The loans and advances of the Bank as on 31.03.2021 are Rs. 3494.21 Lakhs as against  Rs.3254.97Lakhs last year, recording a net increase of Rs.239.24 Lakhs. The Bank’s Credit Deposit Ratio is increased to 61.35% which indicates efficient  deployment  of lendable funds.



During this year your bank has done the overall aggregate Business of Rs.9189.44 Lakhs.


The bank held the following investments as on  31.03.2021

Government Securities   Rs.1381.99

Mutual Funds                Rs.  340.00

Fixed Deposits               Rs.1140.00

Total                             Rs.2861.99

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 are marginally reduced from 3.38% to 3.25% and Net NPAs Nil during 2020-21. In absolute terms, Gross NPA’s are Rs. 113.73  Lakhs against 110.09 Lakhs of last Year, Net  NPAs  are nil.


Gross NPA : 31.03.2020 Rs. 110.09 Lakhs 3.38%
31.03.2021 Rs. 113.73 Lakhs 3.25%
Net NPA : 31.03.2020 Rs. Nil Nil
31.03.2021 Rs. Nil Nil



Our Bank’s establishment expenses are Rs. 53,28,080/- as against                 Rs. 51,27,038/-   of last year.

Actuals as against Permissible


a) On Working Capital 0.81%             2%
b) ON Gross Profits 30.24%            30%

The expenses are in conformity with the see 45(2) and Sec.116(c) of the Telangana State Cooperative Societies Act, 1964.



Your Bank has earned a Net Profit before tax of Rs.55.51 Lakhs for the financial year 2020-2021 where as it was Rs.81.45 Lakhs last year. The net profit after tax stood at Rs.38.38 Lakhs in the Financial Year 2020-2021 as against  Rs.56.34 Lakhs of last year.

The  decline  in  Net Profit  is  due  to  Corona  Pandemic  and  deteriorated  market  conditions.


After proposed appropriation from the profit for the year 2020-2021, the position of Reserves and Funds of the Bank are as shown below :

(Amt. in Lakhs)

As on   Addition after As on     %
31.03.2020    proposed      appropriation 31.03.2021  Growth
1.Statutory Reserve Fund 285.87      9.60 295.47 3.36
2. General Reserve Fund 406.58      6.75 413.33 1.66
3. Other Funds   24.36     -0.41   23.95 -1.68
4. Special Reserve Fund u/s 36(1)(VIII) 23.15   23.15     0
Total 739.96    15.94 755.90  2.15

The Working Capital of the Bank is as under :

31.03.2020 31.03.2021
Share Capital Rs. 332.65 Lakhs Rs. 328.53 Lakhs
Reserves (Free) Rs. 739.96 Lakhs Rs. 755.89 Lakhs
Deposits Rs. 5729.61 Lakhs Rs.5695.23 Lakhs
Total Rs. 6802.22 Lakhs Rs.6779.65 Lakhs
Less : Fixed Assets Rs. 24.95 Lakhs Rs. 21.99 Lakhs
Total Rs. 6777.27 Lakhs Rs.6757.66 Lakhs

The working capital of our bank has marginally decreased by Rs.19.61 Lakhs due to de- crease in aggregate deposits. The Net Worth of the Bank is improved from Rs.1007.16 Lakhs to Rs.1024.66 Lakhs with a growth of 1.74%.

We are happy to mention that CRAR (Capital to Risk Assets Ratio) of our Bank for the year is maintained at 24.17% indicating more stability. As per RBI directives the mini- mum CRAR should be 9% and our capital adequacy ratio is much higher, which is very healthy sign.


Your directors have great pleasure in proposing a dividend of  8% for the year 2020-2021. This is subject to approval of shareholders. Our bank has not declared any dividend last year due to RBI Instructions. We hope next year our workings will improve further.


Concurrent audit is being carried out in the Bank, in addition to Statutory Audit. We have appointed M/s. Venkatappaiah & Co., Chartered Accountants to conduct Statutory Audit of the Bank for the year 2020-2021. Your directors are pleased to inform you that bank is classified as `A’ grade, in audit classification, continuously for the 21st year in a row.


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.


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’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, your Bank secured RBI permission to launch Mobile Banking. We are in the process  of implementing the same and complete the process before December  2021.


We mention below the important achievements of our bank.

  1. The CRAR (Capita to Risk Assets Ratio) under Basel II of our Bank as on 31.03.2021 is maintained at a level of 24.17% as against minimum norm of 9% stipulated by RBI.
  2. The Net Profit after tax is reached Rs.38.38 Lakhs which is
  3. The Profit per employee has reached to a satisfactory level of Rs.2.95


  1. The Productivity / Business per employee is improved considerably to 706.88 lakhs which shows impressive productivity.
  2. Our lending to Priority Sector is satisfactory and in conformity with RBI directives. Our lending to Priority Sector as at 31.03.2021 is improved to 2933.62 lakhs constituting 83.96% of aggregate advances, surpassing the RBI target of40%.
  3. The Net NPA is Nil during the current financial year also.

In view of the present economic scenario and policies of RBI, your directors have estimated a pre-tax profit of Rs.94.58 Lakhs and net profit after tax i.e. Rs.65.07 lakhs for the current year 2021-2022 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.

We also thank the Co-Operative Department for the smooth conduct of election of New Managing Committee /  Board of Directors.

The Board acknowledges the wonderful performance of the outgoing Managing Committee under the leadership of Shri Ajit Gupta  Chairman  and Shri Vinay C Agarwal Vice Chairman  for the overall growth of the Bank.

The Board also acknowledges and sincerely thank for the timely guidance rendered by the Telangana State Cooperative  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.