The Ambala Central Co-operative Bank Ltd; Ambala. Monitorable Action Plan for CRAR

The Ambala Central Coop. Bank Ltd; Ambala City.

The Ambala Central Co-operative Bank Ltd; Ambala The Ambala Central Co-operative Bank Ltd; Ambala. Brief description of the bank. REGISTERED ON – 15 MARCH 1913. Commenced working on 14 November 1913. 100 year old bank has crossed 735 Crores mark in total Business. The Bank spread its business through 29 Branches and 45 PACS in the Ambala District. Having deposit of Rs. 30643.85 Lacs and Loan Rs. 37203.81 Lacs. (31-03-2014)

Trophies & Certificates of Honour & Appreciation Received from Government of India Through NABARD Year 1998-1999 Excellent performance awards given by Sh. Jaswant Singh, Finance Minister of G.O.I. to the bank. Year 1999-2000 Cash- awards for lowest N.P.A. to the staff by NABARD. Year 2000-2001 Excellent performance awards by Sh. Jaswant Singh Finance Minister of GOI to bank. Year 2001-2002 For Good recovery by the Registrar Cooperative Societies Haryana. Year 2002-2003 Excellent Performance awards by P .Chidambram Finance Minister GOI to the bank. Year 2003-2004 Good Implementation of Govt. Policy by Sh. Bhupinder Singh Hooda CM Haryana to the bank.

100 Years of the Bank. Financial performance in our 100th Years of serving business. Particulars 1928 2012 2013 2014 Assets 0.40 47451.56 50584.76 52345.45 Loan 2.90 30130.19 34226.29 37203.81 Reserve 1554.56 2139.80 2053.53 Deposit 2.01 27999.34 28987.36 30643.85 Income 3385.29 3727.28 3958.26

Financial Perfomance Graph ( Amount in Lacs)

Road map to achieve stipulated CRAR of 7% by March 2015 and 9% by March 2017: CRAR of the bank for the year 2013-14 is 7.66 % CRAR of the bank for the year 2012-13 is 8.13 % We raise Share Capital of the Bank by assessing the share linkage accounts of PACS. We may raise our Share Capital by enhancing the %age of Share Linkage By Revaluation of Assets as per RBI letter no. RBI2007-08//203-RPCD.CO.RF BC 40/07.38.03 dated 04th December, 2007. State Govt. may keep deposit with DCCBs as long term Debt without any interest as Share Capital Deposit. The bank can maintain CRAR from capital deposit of members. The position of the Share Capital for the last three years of the Bank is as under: (Fig in Lacs) 2010-11 2011-12 2012-13 2013-14_ DEC 2014 1466.58 1585.38 1710.79 1804.41 1923.63

Position of the Share Capital for the Last three years.

Monitor able Action Plan (MAP) for CRAR Projections for Share Capital:- (Fig. in Lacs) Particulars Actual March 2013 March 2014 June 2014 Sept 2014 Dec 2014 March 2015 June 2015 Govt. Institutions 271.23 Share capital affiliated Societies/institutions 1435.80 1572.12 1602.02 1631.92 1647.66 1674.77 1704.79 Others 3.76 3.80 3.90 4.00 4.75 Total 1710.79 1847.15 1877.15 1907.15 1923.64 1950.00 1980.00

PROJECTIONS : (Fig. in Lacs) Particulars Sept 2015 Dec 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017 Govt. Institutions 271.23 Share capital affiliated Societies/ institutions 1734.77 1764.77 1784.67 1804.67 1824.67 1874.67 1904.57 Others 4.00 4.10 4.20 Total 2010.00 2040.00 2060.00 2080.00 2100.00 2150.00 2180.00

DEPOSIT : Steps taken / proposal for deposit mobilization: The position of the deposit for the last three years: 2010-11 2011-12 2012-13 2013-14____26 Dec,2014 25895.16 27999.34 28987.36 30643.85 31032.88 Steps taken / proposal for deposit mobilization: The bank organized the customer meet at branch level to introduces deposit product of the bank . The Bank is providing 4.50 % p.a. interest on saving bank account having balance above 1 Lacs. 0.50 more interest to the senior citizens. Locker facility, Bill collection, NEFT & RTGS facilities are available to the customers of the bank. Introduction of Core Banking Solution in the Co-operative bank will help in mobilizing deposit. Bank will launch new product i.e. cash credit against FD A/c. Insurance against saving account.

The Projections of Deposits as at the end of each quarter as under : (Fig. in Lacs) Particulars Actual March 2013 March 2014 June 2014 Sept 2014 Dec 2014 March 2015 June 2015 Current 258.64 560.59 660.59 680.59 855.53 780.59 Savings 12689.31 13400.00 13700.00 13900.00 12881.93 14200.00 14400.00 Fixed 16039.41 18039.41 18639.41 18919.41 17295.42 20019.41 20819.41 Total 28987.36 32000.00 33000.00 33500.00 31032.88 35000.00 36000.00

PROJECTIONS : (Fig. in Lacs) Particulars Sept 2015 Dec 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017 Current 780.59 880.59 Savings 14900.00 15000.00 15500.00 15700.00 16200.00 16500.00 16600.00 Fixed 21319.41 22119.41 22619.41 22919.41 23419.41 24119.41 24519.41 Total 37000.00 38000.00 39000.00 39500.00 40500.00 41500.00 42000.00

ADVANCES : The bank diversified its business through implementing the following schemes. Subsidized/non subsidized schemes of Poly House (PODF), Rural Godowns, Poultry Farm, Dairy Development. Cash Credit to Traders and Rice Mill. SRTO/Car loan etc. Cases of advances in Bee- keeping business are in pipe line.

Diversification of Loan Portfolio : The Projections is given as under : Particulars Actual March 2013 March 2014 June 2014 Sept 2014 Dec 2014 March 2015 June 2015 Agriculture 30344.15 35636.00 8400.00 20845.00 33849.31 41690.00 11000.00 Non – Agriculture 9234.93 11427.35 2800.00 7025.00 6180.94 14055.00 3800.00 Total 39579.08 47063.35 11200.00 27870.00 40030.25 55745.00 14800.00

PROJECTIONS : (Fig. in Lacs) Particulars Sept 2015 Dec 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017 Agriculture 24350.00 36600.00 48700.00 12800.00 28475.00 42700.00 56950.00 Non – Agriculture 8640.00 12900.00 17280.00 4700.00 10625.00 15900.00 21250.00 Total 32990.00 49500.00 65980.00 17500.00 39100.00 58600.00 78200.00

PROFITABILITY: The bank has increased the yield on assets. Minimize its expenses . Reduce the NPA. Diversify the credit portfolio in CMA and Cash credit to traders.

PROFITABILTY : Projection is given as under (Fig. in Lacs) Particulars Actual March 2013 March 2014 June 2014 Sept 2014 Dec 2014 March 2015 June 2015 Income Interest received on loan 2551.80 3106.90 3256.90 3406.90 4970.80 3706.90 3836.90 Interest Received on Investment 984.04 1245.00 1292.00 1340.00 383.36 1435.00 1455.00 Other Income 191.44 48.10 51.10 53.10 37.73 58.10 Total 3727.28 4400.00 4600.00 4800.00 5391.89 5200.00 5350.00

PROFITABILTY : Projection is given as under (Fig. in Lacs) Particulars Actual March 2013 March 2014 June 2014 Sept 2014 Dec 2014 March 2015 June 2015 Expenditure Interest paid on borrowings 659.49 750.00 790.00 830.00 416.33 900.00 930.00 Interest paid on deposit 1874.78 2100.00 2230.00 2375.00 1184.91 2500.00 2600.00 Salary and Allowances 943.88 1205.90 1225.90 1230.00 649.52 1405.90 1415.90 Other Expenditures 216.29 244.10 249.10 255.10 2245.72 264.10 269.10 Total 3694.44 4300.00 4495.00 4690.00 4496.48 5070.00 5215.00 Net Profit / Loss 32.84 100.00 105.00 110.00 895.41 130.00 135.00

PROFITABILTY : Projection is given as under (Fig. in Lacs) Particulars Sept 2015 Dec 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017 Income Interest received on loan 3966.90 4090.00 4200.00 4330.00 4460.00 4640.00 4800.00 Interest Received on Investment 1475.00 1500.00 1535.00 1550.00 1565.00 1580.00 1600.00 Other Income 58.10 60.00 65.00 70.00 75.00 80.00 100.00 Total 5500.00 5650.00 5800.00 5950.00 6100.00 6300.00 6500.00

PROFITABILTY : Projection is given as under (Fig. in Lacs) Sept 2015 Dec 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017 Expenditure Interest paid on borrowings 960.00 980.00 1000.00 1010.00 1055.00 1100.00 Interest paid on deposit 2700.00 2825.00 2900.00 2990.00 3100.00 3200.00 3300.00 Salary and Allowances 1425.90 1439.90 1480.00 1500.00 1510.00 1550.00 1580.00 Other Expenditures 274.10 280.10 290.00 300.00 310.00 315.00 320.00 Total 5360.00 5505.00 5650.00 5790.00 5930.00 6120.00 6300.00 Net Profit / Loss 140.00 145.00 150.00 160.00 170.00 180.00 200.00

. Accumulated Losses : There is no Accumulated Losses. External Financial Assistance : ● We are in need of Govt. contribution share capital of the bank. ● The govt. fund may be routed through coop. bank.

NPAs : The NPAs of the bank has gradually decreased. The accounts of borrowers are monitored by the bank on individual basis at H.O. level. Defaulter list is also apprised before the Annual General Body meeting. NPA position of last three years as under: 2010-11 2011-12 2012-13 2013-14 Sept,2014 11.58 % 8.74 % 4.54 % 3.61% 2.92 %

NPA Management : Projections is given as under: (Fig in. Lacs) Particulars Actual March 2013 March 2014 June 2014 March 2015 June 2015 March 2016 June 2016 March 2017 Demand 47577.63 50334.64 33500.00 59000.00 41300.00 70400.00 47100.00 83474.00 Collection 35482.98 37599.98 18425.00 44250.00 23128.00 52906.00 27323.00 63056.00 Recovery % 74.58% 74.70% 55.00% 75.00% 56.00% 75.15% 58.09% 75.54%

POST CBS ISSUES : All the branches of the Bank were migrated on CBS by 31.12.2012 . All the modules of head office are also Live. The main post CBS issues are : Slow connectivity is the major problems. The other issue is of wrong interest Calculation. Report generation – presently only a few reports are being generated. Formats of NABARD and other statutory report has been submitted to WIPRO for mapping. Anti-virus still has not been uploaded in our 6 branches;

Timelines for launching IT enabled products (ATM cards, NEFT/RTGS ) mobile banking issue of Rupay Debit Kisan Cards etc. Our bank is the first Co-operative bank in the state of Haryana for initiating the project of issuance of Rupay KCC and debit ATM card to the customers. The bank has already selected the ASP . IIN no for the Rupay KCC / ATM Cards has been issued by the NPCI to bank. i.e. 607605 . For the IIN of debit cards and Aadhar enabled payments, the necessary document has already been submitted to NPCI through our sponsor Bank, the Axis Bank. NEFT/RTGS facility is available for the customers of the bank.

Strategies for qualitative/quantitative benefits through IT enable products service : We are in continuous process of technological advancement in our banking services and trying to become competent enough to compete with other nationalized and private banks in the district in terms of advanced banking facilities and better customers services. We are in the process to introduce shortly : ● Rupay KCC / debit ATM card. ● ATM counter in our prime branches. ● POS ( Point of sale ) in PACS. ● Aadhar payment bridge system. Our future Endeavour will be : ● Mobile Banking. ● Internet Banking.

Compliance with AML Norms : Bank has adopted the model code of Know Your Customer (KYC)/ Anti Money Laundering (AML)/Combating Financing Terrorism (CFT) Policy issued by NABARD . Principal officer appointed for monitoring KYC and Anti Money Laundering (AML). Reporting entity registration request filed with FIU India.

Qualitative and Timely Compliance Reports of NABARD : Compliance of the NABARD Inspection Report for the year 2009-10 & 2010-11 was made by the bank with in the stipulated period of 60 days . The Inspection has been conducted by the NABARD Inspection Team for the year 2011-12 & 2012-13 . The compliance of the same will be made within the due period by the bank.

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