Dharmapuri District Central Co-operative Bank, Dharmapuri, Tamil Nadu.

Transcription

1 Dharmapuri District Central Co-operative Bank, Dharmapuri, Tamil Nadu..

2 Date of Registration Date of Commencement Date of RBI License obtained No.of Branches Area of operation : : : : 41 No of Member Societies.: 596 : Dharmapuri and Krishnagiri. Districts of Tamil Nadu Major Occupation in the area of operation of the bank : Agriculture

3 Profile of the Area of operation Name of the District Date of Formation Population Extent of cultivation Dharmapuri ,02, Hect. Krishnagiri ,83, Hect. Note: 1. Dharmapuri District was bifurcated from Salem District on Krishnagiri District was bifurcated from Dharmapuri District. on

4 As per circular No.RPCD.CO.RF. BC.40/ / , dated : , RBI, instructed StCBs/DCCBs to disclose their level of CRAR, as on , there after every year as Notes on Accounts to their Balance Sheets. However no % of CRAR was prescribed.

5 As on , Dharmapuri District Central Co-operative Bank had a CRAR level of 1.37% and paid-up capital of Rs lakh. Bank started gearing up its endeavor to improve its level of CRAR and mobilization of Share Capital

6 Bank earned continuous Net Profit from the year Bank followed Dividend payout ratio as prescribed by RBI, for declaration of dividend in order to appropriate more Net Profit to Free Reserves there by to increase its Tier-I Capital.

7 As per circular No. RPCD. RCB. BO.73/ / , dated: , RBI prescribed minimum CRAR for StCBs/DCCBs as 7% and 9% to be achieved as on and respectively.

8 Dharmapuri DCC Bank s Success Story

9 1.Under STCCS revival package, as implemented by Govt. of India, Bank s share of loss Rs lakh, as arrived at, in the Special Audit carried out for this purpose was debited to Profit and Loss account and appropriated to capital account to improve the Tier-I capital of the Bank.

10 2. Share linking to borrowings of PACSs from the bank was enhanced from 6.00% to 8.33% to accelerate the mobilization of Share Capital. Thus, Share Capital of Rs lakh as mobilized from PACSs up to had increased to Rs lakhs as on Similarly Associate member fee of Rs.5/- collected from individuals to avail various loans from the bank was enhanced to Rs.50/- and the same was capitalized instead of treating them as miscellaneous income, as it was accounted in the previous years.

11 4. Keeping major portion of CRR in the form of cash in chest, instead of keeping in current account of other banks, to minimize Risk weight on the portion of Bank balances. 5. Total required SLR investments made in the form of Govt. securities, to minimize Risk weight on the other form of investments, like Fixed deposits in scheduled banks.

12 Bank had diversified its lending portfolio to Non-Farm Sector (NFS), especially issued more loans to Employees Thrift & Credit Societies (EMPCS). Hence, the Share Capital of Rs lakhs mobilized from EMPCS up to , had increased to Rs lakh as on Issued more jewel loans to the loan value of below Rs.1.00 lakh to assign 50% Risk weight on the jewel loan exposure.

13 Bank used only 20% of its Net Profit for declaration of dividend in order to control the quantum of distributed profit with a view to preserve/appropriate major portion of Net Profit in the Free Reserves of the Bank, so as to increase the level of Tier-1 Capital.

14 Growth of Paid -up Capital Amt. in Lakhs

15 Growth of Tier-I Capital Amt. In Lakhs

16 Growth of Tier-II Capital Amt. in Lakhs

17 Growth of Total Capital Funds (Tier-I + II ) Amt. In Lakh

18 Growth of Risk Weighted Assets Amt. in Lakhs

19 CRAR prescribed by RBI to StCBs/DCCBs as on was 9.00% In view of implementation of foregoing best practices, Dharmapuri District Central Co-operative Bank has Achieved CRAR of 15.29% (Subject to NABARD inspection) as on

20 Out of the total capital elements (100%), % of Tier-wise Capital available as on Tier -I Capital Comprises % Tier -II Capital Comprises % Paid-up Capital alone Comprises % of the total capital elements

21 Amount Sl.No. Description % of CRAR (in Lakhs) 1 Paid up capital alone % 2 Other Reserves forming part of Tier-I Capital % 3 Total of Tier-I Capital(1+2) % 4 Tier-II Capital % 5 Total Capital Elements (Tier-I+Tier-II) % Total Risk Weighted Assets as on : - Rs Lakhs

22 % of Break-up of Capital Elements to Aggregate Capital Elements Tier-II Capital Rs (8.18%) Amt. in Lakhs Tire I Capital - Reserve Fund & Other Reserves Rs (46.40%) Tier-I Capital Paid up capital Rs (45.42%) Tier-I Capital : Rs Tier-II Capital : Rs Total Capital Elements: Rs

23 Amt. in Lakhs % of Increase over the year Average (ie. between growth Description the period of 9 years) (Audited) (Audited) per year Amount (3-2) % (4/2x100) (Col.5/ 6 years) Paid-up Capital % 17.85% Tier-1 Capital % % Tier-II Capital % 87.67% Total of Tier I+II % % Risk adjusted value % 10.32% % of CRAR 1.37% 15.29% 13.92% % % Note: Accumulated losses of Rs lakh as on was subtracted from the. paid up capital to arrive Tier-I capital for the year Hence Tier I capital is. less than the outstanding of Paid-up Capital

24 18.00% 16.00% 14.00% GROWTH OF % OF CRAR 12.86% 15.29% 12.00% 10.00% 8.00% 8.14% 9.55% 10.30% 12.75% 6.00% 4.00% 2.00% 0.00% 1.37%

25 Thank You! Dharmapuri District Central Co-operative Bank Ltd., Dharmapuri , Tamil Nadu.