CHAPTER-III ABOUT CHHATTISGARH GRAMIN BANK RAIPUR

Transcription

1 CHAPTER-III ABOUT CHHATTISGARH GRAMIN BANK RAIPUR

2 38 CHAPTER 3 ABOUT CHHATTISGARH GRAMIN BANK RAIPUR 3.1 ORIGIN AND DEVELOPMENT OF CHHATTISGARH GRAMIN BANK Before arriving at introducing the Chhattisgarh Gramin Bank Raipur, it is imperative to have a short introduction and understanding about the Rural banks in India. However going forward in this chapter, attempt is made to provide details reagarding establishment and development of Chhattisgarh Gramin Bank Raipur History of Gramin Bank in India Gramin banks were started in India on October 2nd, They were created based on the Recommendations of the Narsimham committee. The main reason was that our Economic planners knew well that regionally oriented rural banks will help in the growth of Rural economy. The 5 commercial banks that sponsor rural banks are 1. Punjab National Bank 2. State Bank of India 3. Syndicate Bank 4. United Bank of India 5. United Commercial Bank The Equities of Gramin banks are divided as 50:35:15 among the Central Government, above said sponsoring banks, state government. (This is the reason why a Gramin bank job is safe) There are now almost 100 Gramins with their branches in 593 districts Karnataka has a good base for Rural banking and Bihar has the worst track record for Gramin banks.

3 39 VISION STATEMENT OF CHHATTISGARH GRAMIN BANK Consolidation and Growth MISSION STATEMENT OF CHHATTISGARH GRAMIN BANK Strengthening Rural Economy through excellent Banking Service with total satisfaction of Banks Customers (Chhattisgarh Rajya Gramin Bank)

4 Establishment of bank (Chhattisgarh Rajya Gramin Bank) CHAIRMAN: MR. SARBESWAR LENKA Chhattisgarh Gramin Bank has been established on with the amalgamation of erstwhile Bilaspur-Raipur Kshetriya Gramin Bank, Bastar Kshetriya Gramin Bank and Raigarh Kshetriya Gramin Bank in terms of provisions of Regional Rural Banks Act This Bank is sponsored by State Bank of India. The shareholders of the Bank are Govt. of India (50%), State Bank of India (35%) and Govt. of Chhattisgarh (15%). The Bank is operating in 14 districts of Chhattisgarh State with its Head Office at Raipur (Capital of Chhattisgarh State). It covers Bilaspur, Kawardha, Korba, Raipur, Janjgir-Champa, Dhamtari, Mahasamund, Raigarh, Jashpur, Kanker, Narayanpur, Bastar, Dantewada and Bijapur districts. The bank has its Regional Offices at I (Bilaspur), II (Raigarh), III (Jagdalpur) and IV (Raipur).

5 41 Change of Name Chhattisgarh Rajya Gramin Bank has been established on with the amalgamation of erstwhile Chhattisgarh Gramin Bank, Durg Rajnandgaon Gramin Bank and Surguja Kshetriya Gramin Bank in terms of provisions of Regional Rural Banks Act From here the name of bank is Chhattisgarh Rajya Gramin Bank. Table 3.1: Snapshot of Chhattisgarh Gramin Bank (Chhattisgarh Rajya Gramin Bank) Date of establishment Source: Compiled from annual reports of bank (Amalgamation of erstwhile Bilaspur-Raipur Kshetriya Gramin Bank, Bastar Kshetriya Gramin Bank, and Raigarh Kshetriya Gramin Bank vide Govt. of India notification New Delhi F. No. 1/4/2006 RRB (ii), dated ) No of districts covered 14 Name of the districts covered Bilaspur, Kawardha, Korba, Raipur, Janjgir-Champa, Dhamtari, Mahasamund, Raigarh, Jashpur, Kanker, Narayanpur, Bastar, Dantewada and Bijapur Total Geographical areas covered Sq Kms R.O. Bilaspur Sq Kms R.O. Raigarh Sq Kms R.O. Jagdalpur Sq Kms R.O. Raipur Sq Kms Total Population Served 1,41,56,272 No. of Branches 246 Plus 37 Satellite offices Rural Branches 183 Semi- Urban Branches 49 Urban Branches 14 No. of staff (Including Sponsor Bank) 1030 Officers on deputation from SBI 7 Officers 494 Clericals 333 Messengers 196

6 Objectives of Chhattisgarh Gramin Bank (Chhattisgarh Rajya Gramin Bank) The prime objective of the Bank, as spelt out in Regional Rural Bank Act. 1976, is to develop the rural economy by providing credit and other facilities for the development of Agriculture, trade, Commerce, Industry and other productive activities in the rural areas, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs and along with this, to promote saving habit in them. In view of the relaxations granted by the Reserve Bank of India subsequently, the Bank has been extending financial assistance for both priority as well as non-priority sectors. The bank is dedicated to meet the ever increasing credit requirements of the people of the area and to sustained development of improved banking facilities. Our goal is the extension of efficient credit and rural development through institutional credit. The Bank is determined to achieve the objective set before it.

7 Business Philosophy of the bank The bank was established with an objective to provide financial assistance to the weaker section of society through its financial products. It aims at granting loans to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs. It aims at increasing the financial status of village people through its financial assistance so as to increase the overall development of the country. Table Total Business of CGB Bank Year Amount in Crores Source: Compiled from annual reports & records of bank

8 44 Graphical representation of table Amount in Crores It is evident from the graph that the rural bank is doing very well and a continuous positive increase in the overall business trend has been notified. The profits are increased from Rs 1440 crores to 4048 crores between the years 2005 to 2013 showing a positive sign.

9 Profits of the Bank Table 3.3 shows the total profits of the bank from year to It could be seen that there is a considerable improvement in the performance of bank and the profits of the bank are continuously increasing. However a decline has been observed from the year but thereafter again the bank is picking up in terms of increased profits. Table-3.3- Profits of CGB Year Amount in Crores Source: Compiled from annual reports & records of bank

10 46 Graphical representation of table Amount in Crores It could be seen that in the beginning, in the year the profits are very less because of the amalgamation of than existing three rural banks viz., erstwhile Bilaspur-Raipur Kshetriya Gramin Bank, Bastar Kshetriya Gramin Bank and Raigarh Kshetriya Gramin Bank in terms of provisions of Regional Rural Banks Act The highest profits can be seen in the year with Rs crores.

11 Area of Operation and branch Network of CGB by the end of As per discussion with branch managers it has been found that as per the financial inclusion plan of government of having a branch on every 15 K.M. the bank is trying its best to fulfill that objective by increasing its area of operations through its wide network. Table-3.4- Branch Network of CGB Total S. No. Regional Office Urban Semi Urban Rural Branches 1 Raipur Bilaspur Janjgir-Champa Jagdalpur Raigarh Dhamtari Source: Compiled from annual reports & records of bank

12 48 Graphical representation of table Branch Netowrk of CGB Urban Semi Urban Rural Total Branches In accordance with the three tier structure of Regional Rural Banks, the Bank has its Head Office at Raipur, the capital city of Chhattisgarh State. There are 322 branches spread over 19 districts of Chhattisgarh State. By the end of the financial year there were 235 branches. No of branches increased to 322 by the end of year It is also clear from the graph that the ratio of rural branches is also increasing year by year and thus fulfilling the objective of bank for poor.

13 Branch Expansion of CGB True to its name, the bank has 229 rural centers out of 322 branches. Table 3.5 shows the branch expansion progress of Chhattisgarh Gramin Bank. The increase in the number of new branches in rural banks is appreciable; however there are continuous efforts made to maximize the services. The number of branches has shown a good increment in its numbers. The emphasis here is clear from the table that increase in the number of rural branches is more compared to urban. Table-3.5- Branch Expansion of Chhattisgarh Gramin Bank during the years S. No. Particulars No. of Districts Covered No. of Branches Rural Branches Semi Urban Branches Urban Branches Source: Compiled from annual reports & records of bank

14 50 Graphical representation of table No. of Districts Covered No. of Branches Semi Urban Branches Urban Branches Rural Branches It is evident from the graph that the bank is doing extremely well in all the parameters viz., No. of districts covered, No of branches, Rural branches, Semi urban branches and urban branches as well. The focus is more on increasing the number of rural branches as per the objective and it is evident from the table and graph that 71.12% (229 out of 322) of the total branches are situated in rural areas, thus doing justice to its name.

15 Share Capital The authorized capital of the Bank is Rupees Five Crores divided into Five lacs shares of Rs. 100 each. Issued and paid up capital of the Bank if Rupees Three Crores. The share capital of the Bank is subscribed by the Govt. of India, State Govt. and State Bank of India in the ratio of 50:15:35. As a part of restructuring and revamping exercise the Govt. of India, State Govt. and State bank of India have provided Rs thousands and thousands to erstwhile Bilaspur-Raipur and Raigarh units respectively totaling Rs thousand towards equity support in the ratio of 50:15:35. After amalgamation, the share holders have again provided the equity support of Rs thousands in the proportion of their respective shares as follows- Table 3.6: The present structure of total share capital of the Bank(Amount in Thousands) Share Paid up Share Capital S. No Holder Share Capital Deposit A/c Total Govt. of 1 India 50% State Govt. 15% State bank 3 of India 35% Total 100% Source: Compiled from annual reports & records of bank

16 52 Graphical representation of table 3.6 Share Holding State Bank of India 35% Govt. of India 50% State Govt. 15% There are three major stakeholders viz., SBI (The Sponsor Bank) with 35%, Govt. of India with maximum of 50% and State Govt. shares 15% of the Banks shares.

17 MANAGEMENT SYSTEM OF CHHATTISGARH GRAMIN BANK Table 3.7: Board of Directors Chairman Nominated Nominated by Nominated Non Official by Central State Sponsor by State Directors Government Bank Government Assistant Deputy General Collector Shri Basant General Manager Raipur Yadav Manager Operations and R.E.S. Colony, Reserve Credit Charama Bank of State Bank of District- India India Kanker (C.G.) Deputy Deputy General Director Shri Mithilesh General Manager Agri Directorate Swarnkar Manager Business Unit of Indira Ward NABARD State Bank of Institutional No. 1, India Finanace Jagdalpur Chhattisgarh District- Baster Govt. (C.G.) Source: Various Annual Reports of Chhattisgarh Gramin Bank, Raipur

18 ORGANISATONAL STRUCTURE OF BANK Figure-3.1- Organizational Structure of CGB at Head Office Head Office Regional Office Raipur Regional Office Bilaspur Regional Office Jagdalpur Regional Office Raigarh Branch Office Branch Office Branch Office Branch Office Source: Various Annual Reports of Chhattisgarh Gramin Bank, Raipur

19 55 Figure-3.2- Organizational Management System of CGB at Head Office CHAIRMAN General Manager (Adm.) General Manager (Operations) Chief Manager (Vigilance) Chief Manager (Operations) Chief Manager (IT) Office-In-Charge ( Audit & Inspection) Manager General Banking Manager Planning Manager Accounts Manager Secretariat Manager Personal Manager Advances Manager (IT) Source: Various Annual Reports of Chhattisgarh Gramin Bank, Raipur

20 56 Figure-3.3- Organizational Management System of CGB at Regional Office Manager Advances Management System at Regional Office Regional Manager Manager Administration Source: Various Annual Reports of Chhattisgarh Gramin Bank, Raipur

21 57 Figure-3.4- Organizational Management System of CGB at Branch Level Management System at Branch Level Branch Manager Officer Clerk/Cashier/Office Assistant Messenger Source: Various Annual Reports of Chhattisgarh Gramin Bank, Raipur