CHAPTER-III ABOUT CHHATTISGARH GRAMIN BANK RAIPUR

CHAPTER-III ABOUT CHHATTISGARH GRAMIN BANK RAIPUR

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. 3.1.1. History of Gramin Bank in India Gramin banks were started in India on October 2nd, 1975. 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.

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)

40 3.1.2. Establishment of bank (Chhattisgarh Rajya Gramin Bank) CHAIRMAN: MR. SARBESWAR LENKA Chhattisgarh Gramin Bank has been established on 30.06.2006 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 1976. 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).

41 Change of Name Chhattisgarh Rajya Gramin Bank has been established on 02.09.2013 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 1976. 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 30.06. 2006(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 30.06.2006) 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 96239 Sq Kms R.O. Bilaspur 22944 Sq Kms R.O. Raigarh 12024 Sq Kms R.O. Jagdalpur 39114 Sq Kms R.O. Raipur 21257 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

42 3.1.3. 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.

43 3.1.4. 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-3.2 - Total Business of CGB Bank Year Amount in Crores 2005-06 1440 2006-07 1627 2007-08 1926 2008-09 2310 2009-10 2690 2010-11 3055 2011-12 3451 2012-13 4048 Source: Compiled from annual reports & records of bank

44 Graphical representation of table 3.2 4500 4048 4000 3500 3451 3055 3000 2690 2500 2310 1926 2000 1500 1440 1627 1000 500 0 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.

45 3.1.5. Profits of the Bank Table 3.3 shows the total profits of the bank from year 2005-06 to 2012-13. 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 2010-11 but thereafter again the bank is picking up in terms of increased profits. Table-3.3- Profits of CGB Year Amount in Crores 2005-06 1.20 2006-07 5.85 2007-08 20.08 2008-09 41.09 2009-10 69.16 2010-11 51.95 2011-12 49.06 2012-13 52.84 Source: Compiled from annual reports & records of bank

46 Graphical representation of table 3.3 80.00 69.16 70.00 60.00 52.84 51.95 49.06 50.00 41.09 40.00 30.00 20.08 20.00 10.00 5.85 1.20 0.00 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Amount in Crores It could be seen that in the beginning, in the year 2005-06 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 1976. The highest profits can be seen in the year 2009-10 with Rs. 69.16 crores.

47 3.1.6. Area of Operation and branch Network of CGB by the end of 2012-13 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 13 8 34 55 2 Bilaspur 9 11 28 48 3 Janjgir-Champa 2 14 29 45 4 Jagdalpur 4 8 40 52 5 Raigarh 5 7 57 69 6 Dhamtari - 12 41 53 Source: Compiled from annual reports & records of bank

48 Graphical representation of table 3.4 80 Branch Netowrk of CGB 70 69 60 50 40 30 34 55 48 28 29 45 40 52 57 41 53 20 10 0 13 8 9 11 2 14 8 7 4 5 0 12 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 2007-08 there were 235 branches. No of branches increased to 322 by the end of year 2012-13. 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.

49 3.1.7. 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 2007-2013 S. No. Particulars 31.03.07 31.03.08 31.03.09 31.03.10 31.03.11 31.03.12 31.03.13 1 No. of Districts Covered 12 14 14 14 14 19 19 2 No. of Branches 237 235 239 246 266 294 322 3 Rural Branches 181 179 199 202 217 208 229 4 Semi Urban Branches 48 48 26 26 27 58 60 5 Urban Branches 8 8 14 18 22 28 33 Source: Compiled from annual reports & records of bank

50 Graphical representation of table 3.5 350 322 294 300 266 250 237 246 239 235 229 217 200 181 208 202 199 179 150 100 48 50 12 8 14 60 58 48 8 14 26 14 14 26 18 14 2722 19 28 33 19 0 31.03.07 31.03.08 31.03.09 31.03.10 No. of Districts Covered No. of Branches Semi Urban Branches Urban Branches 31.03.11 31.03.12 31.03.13 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.

51 3.1.8. 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. 381827 thousands and 175981 thousands to erstwhile Bilaspur-Raipur and Raigarh units respectively totaling Rs 557808 thousand towards equity support in the ratio of 50:15:35. After amalgamation, the share holders have again provided the equity support of Rs. 289408 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% 15000 423608 438608 2 State Govt. 15% 4500 127083 131583 State bank 3 of India 35% 10500 296525 307025 Total 100% 30000 847216 877216 Source: Compiled from annual reports & records of bank

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.

53 3.2 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

54 3.3 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

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

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

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