Banking
Bombay Mercantile Coop. Bank's Annual Report, 1994-95
Operational Results
The aggregate deposits reached Rs. 1264.78 crores by 31st March 1995 as against Rs.645.13 crores as on 31st March 1994 showing growth rate of 33.82%.
The advances also rose sharply during the year to Rs. 762.52 crores as on 31st March 1995 as against Rs. 506.47 crores as on 31st March, 1994, the growth rate being 50.56%... The growth in deposits and advances of your Bank far exceeded the growth achieved by the Banking Industry which stood at 22.8% and 28.7% respectively. The credit deposit ratio of your Bank which was 53.59% as on 31st March 1994 rose to 60.29% as on 31st March, 1995.
The profits were a record Rs. 13.93 crores for the year.
Despite the above excellent operational results, the Bank has shown a loss because of the full provisions made in the previous year in Bad Debt Reserves in respect of the non-performing assets on the basis of the revised guidelines issued by Reserve Bank of India.
Sectoral Deployment of Advances
The sectoral deployment of advances as on 31st March 1995 was as under-
A. Industrial (Rs. in Crores)
a)Small Scale 150.72
b)Others 42.43
B. Transport Operations
Taxis, Trucks, Cars & Auto rickshaws etc. 95.57
C. Export 49.55
D Trade and Commerce
a)Wholesale 41.26
b) Retail 52.36
c) Small 97.57
E. Other Business like Self-employment,
educated unemployed persons,
professional etc. 21.25
F. Educational Projects/purchasing TV Sets 0.83
G. Purchase of domestic utility articles by
Middle and Lower Class persons and
Salaries employees 6.48
H. Agricultural or allied activities 4.58
I. powerlooms 0.26
J. Other Productive Lines 6.38
k. Consumption Loans 7.32
L. Housing 50.02
M. Other Purposes 135.96
Total 762.52
The above would show the Bank's focus on financing of priority sector areas, particularly the small traders, small transporters and weaker sections of the society, Bank organized credit camps in Jogeshwari, Jodhpur and Bhopal Branches.
The percentage of priority sector advances as on 31st March 1995 stood at 48.5% of total advances. The Bank is making efforts to identify the targeted groups, as also requesting the RBI for more branches at centres where there is a preponderance of weaker sections and minorities.
Foreign Exchange Business
The growth achieved in Foreign Exchange business was about 19% in regard to the trade-related transactions.
The Bank has implemented Post-Shipment Credit Denominated in Foreign Currency (PSCFC) as envisaged by RBI at concessional rates of interest at 7.5% per annum and this arrangement has enabled our exporter clients to compete in the international market, to at considerable extent. Our advances under this arrangement stood at Rs. 15.64 crores as on 31st March, 1995.
Bank has been able to record a modest growth in regard to the maintenance of FCNR, NRE accounts. The total number of such accounts went up to 6607 at the end of March, 1995 from 6256 with an aggregate balance of Rs. 44.27 crores as against of Rs. 34.46 crores as at the end of the previous year.
Appropriation of Profits
No dividend was declared for the year ended 31st March 1994 because of the loss shown due to 100% provision for the NPAs.
The concerted follow up action is being taken to increase margin between the average lending rate and average borrowing rate, particularly after the deregulation of interest rate structure by the RBI..
Over dues
The over dues of the Bank which were at 13.86% of the total advances as on 31st March 1994 were reduced to 11.02% as on 31st March 1995.
It is expected that the over due position will further improve during the coming years.
Membership
The number of shareholders of the Bank increased from 133585 to 147614 as on 31st March 1995 (excluding 44920 nominal members).
Capital and Reserves:
The Bank had increased its authorized capital to Rs. 10 crores which has already been subscribed up to Rs. 7,95,49,440 as on 31st March 1995.
The reserves increased from Rs. 42.22 crores as on 31st March 1994 to Rs. 52.91 crores as on 31st March 1995.
Working Capital:
The working capital increased from 1167.96 as on 31st March 1994 to 1537.76 crores as on 31st March 1995.
Branch Expansion:
Our Bank has expanded its operations further by opening branches in more States during the year at Jodhpur (Rajasthan), Bhopal (MP). Moradabad and Aligarh (UP) and Patna (Bihar). The approval, in principal, for a branch at Jaipur (Rajasthan). Palanpur (Gujarat) and Malegaon (Maharashtra) have also been received from the RBI... Requests are being made for some more branches with a view to help the weaker sections... An extension counter to collect fees etc. was approved in a college premises at Aurangabad. computerization: The Bank has created a Department for development of Computerization. Most of the branches have been provided with computers, which helped in improving the Management Information System and services to the customers.
Human Resources Development: During the year Shaikh Mohamedally Allabux Urban Banking Development Institute conducted 29 programmes with 629 participants, including 66 participants from other Co- operative Banks... The Institute continues to make academic contribution in the field of Research and Development.
Board of Directors
1. Mr. Ghulam Ghouse 2.Mr. R.A. Farooqui
3.Mr. E.H. Turel 4.Mr. Zulfeqar Husain
5.Mr. M.H. Contractor 6.Dr. A.U. Shaikh
7.Mr. S.E.H. Rizvi 8.Mr. Mir Nasrullah
9.Dr. A.A. Raval 10. Mr. W.A. Azmi
11.Mr. K.G. Salch 12. Mr. Jashbhai U. Patel
13.Mr. M.H. Parkar 14. Mr. Shamim Kazim
15.Mr. T.A. Khan
