BANKING

Bombay Mercantile Cooperative Bank: 58th Annual Report for 1995-96(Extracts)

The Banking Industry had to face a very competitive environment. Despite this, the Bombay Mercantile Cooperative Bank showed fairly good progress during the year 1995-96.

The aggregate deposits as at 31st March 1996 reached the level of Rs. 1411.46 crores as against Rs. 1264.78 crores as at 31st March 1995.

The advances also showed a steep increase with aggregate advances rising to Rs. 954.71 crores as at 31^stMarch 1996 as against Rs. 762.52 crores as at 31st March, 1995.

The credit deposit ratio also improved steeply from60.29% as at 31st March 1995 to 67.64% as at 31st March1996.

Profitability

The operational profits of the Bank increased from Rs. 13.93 crores during 1994-95 to Rs. 17.80 crores during1995-96. The operational profits would have been more byRs.4.92 crores which was paid to employees of the Bank in view of the revision of salaries etc. In addition, a provision of Rs. 1.82 crores towards gratuity and Rs. 0.18 crores towards statutory bonus payable to employees has been made. An additional provision of Rs. 8.85 crores has been made towards Non-Performing Assets during the year. The total provisions thus made aggregate to Rs. 10.85 crores which would leave Rs. 2.02 crores towards profit of the Bank.

The percentage of priority sector advances, as at 31^stMarch 1996, remained almost constant and every effort is being made to increase the same to achieve the norms prescribed by RBI.

The Bank has introduced a scheme for financing of ex-servicemen and a Scheme for financing higher technical education.

Purchase went up from 365.54 to 454.02 crores (plus24.21%) and Sales from 367.94 to 457.36 crores (plus24.30%).

The Bank has again approached RBI for their approval for payment of dividend at the rate of 15% declared by the Annual General Body for the year 1992-93 ...

Overdues

The overdues of the Bank which stood at 11.02% of the total advances as at 31st March 1995 is 11.27% as at31st March 1996. Steps are being taken to strengthen the Recovery Cells.

Membership

The number of shareholders of the Bank increased from 1, 47,614 to 1, 58,269 as at 31st March i996 excluding the nominal members which stood at 50,790 as at 31^stMarch 1996

Capital and Reserves

The Bank had increased its authorised share capital during the year from Rs. 10 crores to Rs. 20 crores. As against this, the issued share capital has already increased to Rs. 9,66,14,820 as at 31st March, 1996.

Reserves increased from Rs. 52.91 crores as at 31^stMarch 1995 to Rs. 62.16 crores as at 31st March 1996.

Working Capital

The working capital of the Bank increased from Rs1537.76 crores as at 31st March 1995 to Rs. 1769.00 croresas at 31st March 1996

Branch Expansion

RBI has already granted licences to the Bank for opening of branches at Jaipur (Rajasthan), Palanpur (Gujarat), and Malegaon (Maharashtra).The branches will be operative shortly

Further permission for opening of branches at Calcutta (West Bengal), Chennai (Madras) (Tamil Nadu), Sholapur (Maharashtra) and Varanasi (Uttar Pradesh) have been received.

Another extension counter has been opened at Nanded.

Human Resources Development

During the year the Institute organised 35 programmes with 743 trainees including 78 from other urban cooperative banks.

Besides our regular courses, the Institute arranged some special programmes.

Acknowledgements

The Board of Directors record their appreciation of the services rendered by Mr. S. Shamim Kazim, its Managing Director.