vima kamgar co operative bank ltd Management discussions

VIMA KAMGAR CO-OPERATIVE BANK LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS EXPENDITURE FROM INCOME: (Rs. in Lacs) 2006-2007 2007-2008 Rs. Ps. % Rs. Ps. % 1) Interest On Deposit 583.55 62.80 735.74 65.86 2) Int. on Loans 8.30 0.89 0.45 0.04 3) Salaries & Allowances 130.47 14.04 137.62 12.32 4) Directors Allowances 0.74 0.08 0.86 0.08 5) Rent, Tax, Insu., Electric, etc. 29.27 3.15 22.83 2.05 6) Postage, Tele Gram, Telephone etc. 2.20 0.24 2.25 0.20 7) Auditors Fees 4.61 0.50 5.02 0.45 8) Depreciation 12.10 1.30 18.23 1.63 9) Printing & Stationery, Advt. 7.89 0.85 6.84 0.61 10) Legal Expenses 0.07 0.01 0.04 - 11) General Expenditure 26.21 2.82 30.98 2.77 12) Provisions & Other Funds 10.30 1.11 15.30 1.37 13) Tax Provision 38.91 4.19 45.22 4.05 14) Balance Profit 74.56 8.02 95.73 8.57 TOTAL 929.18 100.00 1117.10 100.00 LOANS TO DIRECTORS: Details of Loans in the financial year is as under: (Rs. in Lacs) Loan as on 01-04-2007 Rs. 44.58 Loan from 01-04-2007 to 31-03-2008 Rs. 10.60 Loan Returned as on 31-03-2008 Rs. 11.90 Loan balance as on 31-03-2008 Rs. 43.28 Loan overdues on 31-03-2008 Rs.Nil APPROPRIATION OF PROFIT: In the financial year 2007-2008 bank has registered a net profit of Rs.95.73 lakhs. Board of directors have proposed 11% dividend for the year ended 31-03-2008 & 9% interest on Cumulative Deposit of the members. The appropriation of profit recommended by Board of Directors is as follows: (Rs. in Lacs) 1) Reserve Fund 24.00 2) Dividend @ 11% 65.50 3) Building Fund 1.00 4) Donation Fund 0.50 5) Staff Welfare Fund 0.35 6) Chairman Relief Fund 0.35 7) Dividend Equilisation Fund 0.50 8) Members Welfare Fund 0.50 9) Contingency Reserve 0.50 10) Golden Jubilee Fund 2.50 11) Carried forward for Next Year 0.03 95.73 CAPITAL ADEQUACY RATIO: The bank has always given importance to the capital adequacy ratio (CRAB) of the bank as per RBI guidelines. Our banks CRAB stood at healthy 15.29% which is well above the regulatory norms of minimum 9%. AMENDMENT TO BYELAWS: Since our banks Paid-up Share Capital has almost reached the limit of authorised Share Capital of Rs. 7 Crores. The Board of Director have proposed to enhance the said Authorised Share Capital to Rs. 10 Crore suitably amending the byelaws of the bank. The Board of Directors seeks members approval for the same. We also seek your approval to increase monthly contribution towards cumulative deposit from present Rs. 125/- in order to strengthen banks fund Position. 10th OCTOBER FOUNDATION DAY: Our bank has completed 47 years of glorious service on 10h October 2007. This year also we celebrated the foundation day on a grand scale. Shri Pradip Kabre, famous cine artiste and Secretary, All India Dramatic Association was the Chief Guest. We felicitated Shri Sunil Shinde our ex- member and present Cooperator of Mumbai Municipal Corporation. Shri Arvind V. Nachane a great union leader of All India L.I.C. Employees Federation. and Shri M.S. Upadhaya working president, General Insurance Employees All India Association graced the occasion. It is always our endeavour to meet all our valued members atleast twice, once on Foundation Day and second on the day of distribution of Dividend. GOODWILL VISITS: Hon. Member of Parliament Shri Anandraoji Adsul, Eminent Solicitor and Ex- Chairman, M.S.C. Bank Ltd., Shri Gulabroji Shelke, elightened Director of Maharashtra Urban Banks Federation, Shri S.B. Adsul, Shri Vora Chairman Kapole Bank, Shri Herlekar Chairman Mantralaya Bank, MLA & President Sthaniya Lokadhikar Samiti Mahasangh Shri Gajanan Kirtikar. paid goodwill visit to our bank in the year under review and expressed satisfaction over the banks progress. PAN CARD: Bank Proposes to introduce a Scheme with the help of UTI Technological Services Ltd. (Govt. of India co.) to issue Pan Card to its Members and depositors through its branches. The Pan Card will be issued after collecting necessary documents and processing fee within 15 days after submission, of forms and necessary papers. RESERVE BANK OF INDIA INSPECTION: Reserve Bank of India carried out inspection of our bank covering the period upto 31-03-2007, under Section 35 of B. R. Act 1949 (AACS). inspecting Officers have appreciated the working of the bank as well as progress made in the areas of Share Capital, Reserves, Deposit Mobilisation, Deployment of Funds, Profitability and Management and Control over the Non-Performing Assets. AWARDS AND RECOGNITIONS: The bank this year also received a Trophy from Maharashtra Employees Banks Association at a conference at Panhala, Kolhapur for meritorious performance in banking field. STAFF RELATIONS: The Board of Directors is pleased to record its appreciation of the sincere and dedicated services rendered by the employees at all levels. Relations between management and employees continued to be cordial during the year under report. OBITUARY: In this year our banks Ex-Director, Shri D.B. Kadam passed away, Comrade Shri T.S. Palkar a member of the bank a strong unionist and leader of Federation also passed away. Also some of the members of the bank passed away. The Board of Directors place on record its profound sorrow and grief at the sad demise of all of them.