SINDHUDURG BANK - C-PEC | Centre for Professional ...bird-cpec.in/wp-content/uploads/2018/02/3-Best-Practices...Sindhudurg District Central Co-operative Bank Ltd., (SDCC) Sindhudurg

SINDHUDURG BANKSindhudurg District Central Co-Op Bank Ltd., Sindhudurg

STATE – MAHARASHTRA.

Map of Sindhudurg District

Sindhudurg District Central Cooperative Bank Ltd.

SINDHUDURG DISTRICT

• Southern part of the greater tract known as

'Konkan'

• Historically famous for its long coastline

and safe harbors.

• It was a part of Ratnagiri district,

• For administrative convenience Ratnagiri

district was divided into Ratnagiri and

Sindhudurg with effect from 1st May 1981.

• Sindhudurg district comprises the eight

tahasils

Geographical area of 5087 sq. km

Population 8.69 lakhs.


• 136 Branches of Nationalised Banks including State

Bank of India,

• 16 Branches of Vidarbha Konkan Gramin Bank

• 98+1 branches of Sindhudurg District Central Co-op

Bank,

• 7 Branches of Land Development Bank

• 1 Branch of MSFC.

• 2 branches Local Urban Banks

• 27 branches of other Co-op Bank.

SINDHUDURG DISTRICT – Banking Sector


Banking Business in District

Particular 31/03/15 31/03/16 31/03/17 %

Total Deposit 4945.84 5539.70 6245.87 12.75

A) Commercial & Other Bank 3592.71 4030.48 4568.22 13.34

B) Rural Bank 149.30 161.39 176.57 9.41

C) Co-op Bank – DCC 1203.83 1347.83 1501.08 11.37

Total Loan 2488.08 2867.13 2988.29 4.23

A) Commercial & Other Bank 1494.30 1725.67 1812.00 5.00

B) Rural Bank 115.57 121.40 113.99 -6.10

C) Co-op Bank - DCC 878.21 1020.06 1062.30 4.14

CD Ratio- Commercial Bank 42% 43% 40% -6.98

CD Ratio - DCC Bank 73% 75% 71% -5.33

Total Bank Branches 270 286 285 -0.35

DCC Bank Branches 99 99 99 0.00


Sindhudurg District Central Co-operative Bank Ltd.,

(SDCC) Sindhudurg

• SDCC Bank came into existence bifurcating from RDCC Bank

on 1st July 1983, with

Total Deposits at Rs. 632.00 lacs

Working capital at Rs. 1228.45 lacs

Network of 26 branches and

225 as staff

• At this backdrop, within just 30 years, it has reached to a level

Deposits at Rs. 150107.59 lacs

Working Capital at Rs. 177577.09 lacs

Loans and Advances at Rs. 106229.88 lacs

99 branches with 628 staff

Bank is in pace with techno physical advancements in

providing services to customers.


Corporate Governance in Cooperative

Board of Directors 19

Chairman

Chief executive officer

Dy.Chief executive officer

Manager

(Admin)

Manager

(Loan &

Develpment)

Manager

(Field &

Recovery

Manager

(Accounts)

Manager

(IT)

Manager

(Audit)

Dy.Manager

(Admin &

property)

Dy.Manager

(Loan &

Develpment)

Dy.Manager

(Field &

Recovery

Dy.Manager

(Accounts)

Dy.Manager

(IT)

Dy.Manager

(Audit)

Dy.Manager

Vigilance

Section



• Our Board of Directors consists of 19 members

• 2 of which are expert in Law and Economics.

• Policy to place before the Board all the factual aspects of

each case in respect of sanction of loan.

• The Boards takes the decision in the interest of Bank

• With wilful defaulters, the directors used their good

offices to recover these loans.

Corporate Governance

Interest Rate Revision

• The rate of interest on Deposits & Loans are revised time to

time.

• Bank has formed ALCO committee which held meeting once

in every two months.

• The rates are first decided in ALCO and then BOD confirms

the rates.

• The comparative position of Cost of Fund & Yield on Assets

for last 3 years is as under –

Year Cost of Fund Yield on Assets Net Interest Margin

2014-15 7.18% 10.40% 3.22%

2015-16 6.88% 10.71% 3.83%

2016-17 6.47% 10.09% 3.62%

Steps to Increase Profitability


Reduction in NPA –

• Every month the review of recovery is taken at Head office.

• NPA identification on ‘On Going basis’

• Review of NPA recovery is taken in every monthly BOD meeting.

• Necessary legal action is taken for recovery of critical cases.

Year % of Gross NPA % of Net NPA

2014-15 3.78% 0.00%

2015-16 3.16% 0.00%

2016-17 3.08% 0.00%


Steps to Increase Profitability

Increase in Productivity

• Branch wise targets for Deposit Mobilization and Loan

disbursement are set

• Review is taken on taluka bases every month by Manager

and quarterly review of all staff is taken by CEO.

• Bank made teller made loan scheme

• Nivas Nyahari Yojana for tourism,

• Baliraja Education loan scheme for farmer’s child

• Wider publicity is given through FLC, Exhibition camp, Local

news papers, Local T.V. channels etc.

• Bank has increase micro Business by delegating Loan

sanctioning powers to BM.

• BM can Sanction loan for Car up to Rs.15 lacs


Increase in Productivity

YearPer Branch

Productivity

Per Employee

Productivity

2014-15 2103.07 318.35

2015-16 2391.82 370.56

2016-17 2589.27 408.18


• Position of Productivity for last 3 years is as under –

(Rs in Lakh)

Comparative position of profitability for last 5 years

(Rs in Lacs)

Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Total Income 9376.51 10924.06 12591.97 13809.98 14912.11 16159.07

Total Expenditure

(Excl. Provisions)8413.13 9909.60 11170.10 12874.37 13619.44 13337.25

Gross Profit963.38 1014.46 1421.87 935.61 1292.67 2821.82

Provisions made413.38 414.46 816.87 325.61 642.67 1971.82

Net Profit550.00 600.00 605.00 610.00 650.00 850.00


Profitability for last 5 years –

Financial Position

Particulars Amount

(31-03-2016)

Amount

(31-03-2017)

Share Capital 3384.48 3647.59

Reserves & Surplus 7767.06 8587.03

Deposits 134783.81 150107.59

Loans & Advances 102006.75 106229.88

Investments 50959.63 59926.40

CRAR 9.05 % 11.31%

Gross NPA % 3.16 % 3.08%

Net NPA % 0 % 0%

Recovery % 83.49% 90.76%

Statutory Audit Class A A

NABARD Rating A A


(Rs in Lacs)

The bank had made a remarkable progress in financial as well as

technology sector.

Business Diversification –

• Instead of concentrating on financing ‘On lending’ basis, our

bank has diversified its loans portfolio and entered into retail

banking granting direct loans to individuals.

• At present out of the total loans more than 60% loans are

granted to individuals.

Year Society Loan % Individual Loan %

2007 51.98% 48.02%

2017 38.80% 61.20%

Milestones achieved by the Bank


• Investment of surplus fund in different types of investments.

Trading in Government Securities of GoI and State

Development Loans since 2012.

In 2016-17, bank has earned profit of Rs.437.93 Lakhs

from Government Securities trading.

Investment in Treasury Bills, Cash Management Bills,

Call money, Mutual funds etc.

• 31 branches are working as PAN Service Centre.

• Safe Deposit Locker facility through various 23 branches.



CBS Implementation and Adoption of Banking Technology-

• Implemented CBS Project in 2012 establishing its own ISR

data center with own staff.

• Implemented new concepts of banking like ABB, IBT,

NEFT/RTGS, ATM Centers etc.

• Implemented new concepts of modern banking since

November 2015 like e-banking, POS, IMPS, Mobile App.



• Sindhudurg Bank Mobile App

• IMPS fund transfer (P2A)

• RTGS/NEFT fund transfer

• EMV-RuPay ATM cum DEBIT CARD

• EMV- Kisan Credit Card

• POS-Issuer service

• Miss call alert service for balance enquiry

• DBTL/APB and other subsidy transfer

• BNA – For cash deposit

• Mobile ATM Van

• IRCTC Railway ticket booking & Mobile, DTH Recharge

through Pay point service


Goals achieved by the Bank

Direct Membership under CPS of RBI -

• Bank has availed Direct Membership (‘A’ Class) for

RTGS/NEFT under Centralised payment system of

RESERVE BANK OF INDIA. in the year 2016.

Aadhar enrolment facility -

• First DCCB who is empanelled with UIDAI to provide Aadhar

enrolment fFacility to people. Bank has enrolled near about

2.5 Lacs Aadhar enrollment through its own Aadhaar centers.

ATM centers -

• Bank has 38 ATM centers throughout the district.

CCIL membership -

• Received CCIL Direct membership for the Security Segment.



Bank’s own Training Centre –

• Training Centre at Kudal. Bank has conducting various

training programmes for its employees and customers as

well as for other cooperative societies staff and workers.

Computerisation of PACs -

• For computerisation of PACs bank has granted interest free

loan to PACs from its own funds. Necessary Technical aid

also provided to PACs wherever required. (Out of 226 PACs,

92 PACs are computerised )

Reduction in Imbalance -

• Bank granted interest free loan to PACs up to Rs.10 lacs to

reduces imbalances (In last 10 year no. of societies in

imbalance reduces from 25 to 2)



• Umbrella Programme on Natural Resource Management

(UPNRM) is a joint project successfully implemented by the

Bank and Bhagirath Prathistan (NGO) in India.


Implementation of UPNRM Project


• Dhanvardhini Deposit scheme (MMD)

• ‘Super Saving’ Deposit Scheme

• Fixed Deposit Scheme

• ‘Suvarna Thev’ Deposit Scheme

• ‘Hariyali’ Damduppat Deposit Scheme

• ‘Dnyanada’ & “Vidyadhan’ Deposit scheme specially for

student

• ‘Sadaphuli’ Monthly Deposit Scheme

• ‘DISHA” Daily Deposit Scheme

• ‘Saving Account’, ‘Current Account'

• ‘Recurring’ & ‘Small Saving’ Schemes


Deposit Schemes-

Loan Schemes


• Gold Loan

• ‘Baliraja” Education loan

for farmer’s children

• ‘Dnyan Sadhana’

Education Loan

• “Sindhu Niwas Nyahari’

Tourism Loan

• Govt. sponsored Loan

schemes

• S.H.G. Loans

• Cash Credit Loans

• Short Term Crop Loan

• ‘Sindhu’ Pension Loan Scheme

• Medium Term Loan

• ‘Sindhu Gharkul’ House Loan

• Long Term Loan

• Personal Loan Scheme

• Special Loan For Sugar Cane

• Sindhu Samruddhi’ Loan

Scheme

• ‘Sindhu’ Salary Loan Scheme

• ‘Computer-Tab’ Loan

• Vehicle Loan

Various Policies

• Deposit Policy

• Loan Policy

• Investment policy

• IT Policy

• Information Security policy

• The Business Continuity

Plan (B.C.P)

• Staff Recruitment Policy

• Staff Promotion Policy

• Staff Transfer Policy

• Staff Training Policy

• Internal Audit Policy

• OTS Policy

• Gold Loan Policy,

• K.Y.C. Policy,

• TPM Policy,

• Demand Draft Policy,

• Complaint Redressal

Policy


• Checker Maker system is mandatory follow in CBS.

• Internal Inspecting officer has been assigned to internal

inspection periodically

• For the inspection of Gold loan, Inspecting officer having

experience in gold verification are appointed. Hence gold

loan risk due to fake ornaments is minimized.

• Quarterly Internal audit at head office level is carried out by

Chartered Accountant appointed by the bank.

• In CBS environment, Bank has also conducting branches

online audit (Concurrent) on day to day basis.

• Vigilance officer give surprise visit to the branches. He

reports his observations directly to C.E.O.

• ALCO committee of our Bank is regularly taking review of

various risks viz. Interest risk, liquidity risk, Market risk,

Operational risk etc.


Internal Control, Internal Audit, Statutory Audit

Bank’s CRAR percentage for last 3 years was as under-

Sr. No. Financial Year % age of CRAR

1. 2014-15 9.21%

2. 2015-16 9.05%

3. 2016-17 11.31%

Problem of low CRAR

• The increase of share capital depend upon share linking to

the loan of Co-operative societies.

• Bank, has limited scope to disburse loans to co-operative

societies

• Our Bank finances to individuals by nominal membership

resulting into low increase in share capital.


CRAR improvement and share capital mobilization

Measures taken to Increase % of CRAR

• Sindhduurg District is small in size and having limited

Number of societies. There is no any Industry in District.

• Bank had taken special efforts to increase coverage of

members Resultantly bank share capital is increased asunder.

Sr. No. Financial Year Increased in Share

capital

1. 2014-15 183.88

2. 2015-16 245.85

3. 2016-17 263.11


(Rs in lacs)

Measures taken to Increase % of CRAR

• To facilitate raising of capital funds (Tier I and Tier II) for

complying with the prescribed CRAR, RBI vide its letter

dated 07/01/2014 had permitted to issue Long Term

(Subordinated) Deposits (LTD) and Innovative Perpetual

Debt Instruments (IPDI) with prior permission of RBI.

• With the Prior sanction from RBI and RCS Bank has raised

LTDs of Rs.20.00 Crore during F.Y. 2016-17 resulted in to

percentage of CRAR as on 31/03/2017 was 11.31%.


Bank has diverted from the traditional method of investing its

excess funds in Fixed deposits of other banks. We are investing in

various profitable avenues of investments. Since 2012 our Bank

is investing in Govt. securities and Treasury Bills resulting in

1. To minimize the risk weightage in order to increase CRAR. (for

Deposit 22.5% were as in Gov. Sec. is 2.5%)

2. To Diversify the Investment Portfolio to minimised risk in

particular segment.

3. To deploy available fund to earn maximum income to increase

its profitability


Diversification of Investment Portfolio

Particulars 2013-14 2014-15 2015-16 2016-17

F.D. with MSCB 17358 3558 958 1558

F.D. with other

Bank21307 19625 9659 21103

Govt. Securities 11791 12893 25174 20116

Treasury Bills 3229 4257 11977 16958

Mutual Fund 0 0 0 0

Call Money 0 0 3000 0

Shares in other

Institution192 192 192 191

Total 53878 40525 50960 59926

Diversification of investments

(Rs. in Lacs)


• ‘Vainkunth Mehata Best Performance’ 1st rank Award from

Maharashtra State Co-op Banks Association. (2004-05, 2005-06,

2016-17)

• ‘Vikas Ratna’ award from All India Business Association, New Delhi

(2008-09)

• ‘Best Compliance of Financial Parameters’ award from Maharashtra

State Co-op Bank (2007-08 , 2008-09, 2009-10)

• BANCO Award (2012-13, 2015-16, 2016-17)

• ‘Best Implementation of SGSY Scheme’award from Maharashtra

State Govt. (2010-11)

• ‘Sahakar Nishtha” award from Maharashtra State Govt. Co-op

Department (2013-14)

• ‘Best Data Center Upgradation’,’Best acquier ATM Transaction’ &

‘Best C.E.O’ award from F.C.B.A. (2015-16)

• ‘Best e-payments-Phase 2’, ‘Leadership Award-Best IT Head’ award

from F.C.B.A. (2016-17)

Awards Received to the Bank


Documents

SINDHUDURG BANK - C-PEC | Centre for Professional ...bird-cpec.in/wp-content/uploads/2018/02/3-Best-Practices...Sindhudurg District Central Co-operative Bank Ltd., (SDCC) Sindhudurg