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State Cooperative Bank - PDF


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The Pondicherry State Co-operative Bank Ltd., was registered as a Co-op. Society on 10th October
1958 and started functioning on 30th October 1958. Before existence of the Pondicherry State Co-op.
Bank, the societies in Pondicherry region have availed the credit facilities from the South Arcot District
Central Co-operative Bank, the societies in Karaikal region from the Kumbakonam District Central Co-
operative Bank, the societies in Mahe region from the Tellicherry Co-operative Bank and the societies in
Yanam region from Kakinada Central Co-operative Bank. The Pondicherry State Co-operative Bank
has started its business with a Share Capital of Rs.6.73 lakhs and a Working Capital of Rs.11.77 lakhs.
The Bank has achieved tremendous progress in all fields during the period of 48 years.


The Bank obtains the funds by way of share capital from the members mainly from the affiliated
societies and also from the State Government, increasing the reserve, mobilization of deposits from
individuals and institutions and by borrowing loans from NABARD and State Government.


The Share Capital mobilized by the Bank as on 31.03.2007 amounted to Rs.941.58 Lakhs. The Share
Capital contributed by Individuals, Societies and Government are as detailed below:

(Rs. in Lakh)

                     Sl. No.           Particulars                   2006-2007

                                                             No.           Amount

                     1.        Societies                     282           744.19

                     2.        Government                    1             187.84

                     3.        Individuals                                 9.35

                               Total                         283           941.58


The total Reserves of Bank amounted to Rs.3199.06 lakhs as on 31.03.2007. The details of the same
are furnished below :

                                                     (Rs. in Lakh)

                     Sl. No.                  Particulars                 2006-2007

                     1.         Statutory Reserve                         574.50

                     2.         A.C.R. Fund                               165.17

                     3.         Building Fund                             141.09

                     4.         A.C.S. Fund                               470.05

                     5.         Dividend Equalization Fund                96.45

                     6.         Bad & Doubtful Debt Reserve               857.00
                     7.         Overdue Interest Reserve                  292.91

                     8.         Investment Reserve                        385.20

                     9.         Others                                    216.69

                                Total                                     3199.06

         The Reserve Fund has been built-up by the bank by appropriating 25% of the net profit of the
bank every year. The Reserve fund has been invested in Government and other approved securities.
The Bad and Doubtful Debts Reserve of Rs.857.00 Lakh has been built-up by the Bank from out of the
Profit against the Bad and Doubtful loans, as per the Reserve Bank of India guidelines issued, in this


The Deposits of our bank has grown to Rs.25155.69 Lakhs as at the end of 31.03.2007. To safeguard
and protect the interest of the depositors, we have made arrangements with the Deposit Insurance and
Credit Guarantee Corporation for protection of deposits to the extent of Rs.1.00 lakh per depositor. The
break-up of the Deposit are furnished below:

                                                                    (Rs. in Lakh)

                           Sl. No.             Particulars            2006-2007

                           1.         Individuals                     16645.65

                           2.         Societies                       4883.44

                           3.         Public Sectors                  817.22

                           4.         Local Bodies                    2809.38

                                      Total                           25155.69


        The Bank is availing refinance from NABARD for Seasonal Agricultural Operation to an extent
of Rs.240.00 lakhs. This is in view of higher Minimum involvement fixed for S.A.O. and insistence of
Govt of India guarantee. The bank has also availed refinance for its involvement in schematic lending
and Govt. sponsored programmes like I.R.D.P., PADCO, Non-farm Sector, etc. The Details of
borrowing from NABARD under refinance scheme are furnished below:


Under Annual Credit Plan a target of Rs.1540.58 lakhs for our bank for crop loans for financing
seasonal Agrl. Operation during the financial year 2006-07. Our bank has issued loans to the extent of
Rs.800.56 lakhs.


NABARD stipulated the condition that our bank should issue at least 20% of the crop loans to small
farmers (i.e. farmers owing or cultivating 5 acres or less of wet or dry land). Out of the short term loan of
Rs.800.56 Lakhs disbursed during the year 2006-07 a sum of Rs.590.15 lakhs was issued to small
farmers which works out to 74%

The comprehensive crop insurance scheme which was introduced during Kharif 1985 season and the
scheme is implemented by the bank through the Primary Agrl. Credit Societies upto Kharif 1999 for
Paddy crop. The comprehensive insurance scheme has since been substituted by NAIS which is
implemented from Kodai/Navarai 2000.



Jewel loans on gold ornaments are issued by our Bank through our branches directly to the individuals,
besides re-imbursing the loans disbursed by the Primary Agricultural Co-operative Banks. Maximum
jewel loan of Rs.1.00 lakh is sanctioned to an individual at Rs.600/- per gram of gold. A sum of
Rs.1643.27 Lakhs is outstanding under this jewel loan as on 31.03.2007


The Employees Co-op. Credit Societies are getting their financial requirements from our bank and the
entire amount of the loan is met by this bank without any refinance from any higher financing agencies.
The outstanding as on 31.03.2007 is Rs.5165.00 Lakhs.


The Bank has sanctioned working capital loan of Rs.800.00 lakhs to the Pondicherry Co-op. Sugar
Mills. The NABARD insist upon the " Exposure Norms" to be followed by the Cooperative Banks, which
restrict to 50% of own fund as working capital loan to Cooperative Sugar Mills.


The Pondicherry Co-op. Spinning Mill is provided with a working capital loan of Rs.800.00. The Bank
has also sanctioned a working capital loan of Rs.175.00 lakhs to the Jayaprakash Narayan Co-
operative Spinning Mill, Karaikal and a sum of Rs.186.63 Lakhs is outstanding as on 31.03.2007


The Bank is providing working capital loan to PACS for dealing in fertilizer and PDS business. Further,
working capital loans are also provided by the bank to consumer stores and other type of societies in
the Union Territory of Puducherry.


The Bank is also sanctioning Overdraft facilities to Individuals (who maintain Current Account in our
Bank) upto Rs.5,000/- on the Surety basis, and upto Rs.25,000/- on the Security of immovable property.
A sum of Rs.68.36 Lakh is outstanding under this item, as on 31.3.2007.


a) Investment: The bank has invested in the Govt. and other approved securities to the extent of
Rs.7313.72 lakhs as on 31.3.2007. The investment in Govt. and other approved securities is mainly:

i. For maintaining liquid assets as per section 24 of the Banking Regulation Act, 1949.

ii. For ear-marking of securities towards the un-utilised balance in the agrl. credit stabilisation fund of
the bank.

iii. The Bank also invested the surplus funds to the extent of Rs.3150.00 lakhs with PNB Gilts and other
Notified Banks

b) Management:

The Board of Management is comprised by :
1. Five representatives of Agricultural Credit Societies in Pondicherry region

AMOUNT OUTSTANDING AS ON 31.03.2007 (Rs. in lakhs)

a) Non-farm Sector & Rural Housing - Rs.125.98

b) IRDP, PADCO & Schematic lending - Rs. 2.19

c) Seasonal Agrl. Operations - Rs.240.00


The Bank is providing various types of loans, like loans for seasonal agrl. operation, working capital
loan to Weavers Co-op. Societies, loans for farm and non-farm sectors, cash credit limits to all Co-op.
Societies including the Coop. Sugar Mill and Spinning Mills, medium Term conversion loans by
converting the short term agrl. loan on account of natural calamities. The total Loans outstanding as on
31.03.2007 amounted to Rs.14819.02 Lakhs. The Sectoral deployment of Advances as on 31.03.2007,
are furnished below:

                          Sl.                                                                 2007
                          No                                      Particulars
                                                                                              (Rs.     in

                          1.                     S.T. Loan (Agrl.)                            80.22

                          2.                     S.T. K.C.C. (Agrl.)                          1245.84

                          3.                     M.T. Loan (Agrl.)                            169.34

                          4.                     S.T. Loan (Others)                           1011.31

                          5.                     M.T. Loan (Others                            1094.80

                          6.                     L.T. Loan (Others)                           6.21

                          7.                     Cash Credit (Weavers)                        777.30

                          8.                     Cash Credit (Consumers)                      64.64

                          9.                     Cash Credit (Others + OD)                    776.95

                          10.                    Salary Earners Co-op. Societies              5165.00

                          11.                    Transport Loans                              2.42

                          12.                    Jewel Loans                                  2606.20

                          13.                    Non-Farm Sector (SSI Unit Loans)             27.62

                          14.                    Loan on Deposits                             968.47

                          15.                    Sugar Mills                                  -

                          16.                    Spinning Mills                               186.63
                          17.                   Consumer Stores                                  30.42

                          18.                   Self-Help Groups                                 377.30

                          19.                   Marketing Societies                              228.12

                                                Total                                            14819.02

The Bank has started financing Self-Help Groups and also agricultural loans to farmers under Kissan
Credit Card Scheme. As the above Schemes are becoming popular among the public there is much
scope to issue more loans during this year.

affiliated to the Bank;

2. One representative of Agricultural Credit Societies from Karaikal, Mahe &

Yanam region affiliated to the Bank.

3. One representative of Weavers and Industrial Co-operative Societies affiliated to the Bank;

4. Two representatives of Consumers, Marketing and other type of Societies not enumerated in item 1
to 3 above affiliated to the Bank;

5. Two representatives nominated by the Government;

6. One representative nominated by National Bank for Agricultural and Rural

Development (NABARD) &

7. The Managing Director of the Bank.

The Bank is now managed by the Administrator appointed under the Pondicherry Co-operative
Societies Act, 1972. The Managing Director, who is Chief Executive of the Bank is also from the
Government in the cadre of Deputy Registrar of Cooperative Societies.

Managing Director

Development Officer       General Manager (Estt. & Loans) General Manager (Banking)

Asst.Development Officer            A.G.M.(Estt. & Loans)                  A.G.M. (Bkg) A.G.M.

Manager (Estt.)                 Manager(Loans)Manager (Bkg)                    Manager (Stat)

                                         Computer Programmer

c) Inspection/ Audit: As the bank is coming under the purview of the Banking Regulation Act, 1949,
(As applicable to Co-op societies) the Bank is statutorily and periodically inspected by NABARD on
behalf of the Reserve Bank of India. The accounts of the bank audited by the Chartered Accountant
appointed by the Registrar of Co-operative Societies.
d) Licence/ Scheduled Status: The Pondicherry state coop. Bank has got its Licence from Reserve
Bank of India on 14.09.1994 and attained scheduled status with effect from 20.07.1995

       The Pondicherry State Coop. Bank was registered as a Co-operative Society on

10th October 1958 and started functioning with effect from 30th October 1958. The

Bank has started its business with a Share Capital of Rs.6.73 lakhs and working capital of

Rs.11.77 lakhs, with its branches at Karaikal, Mahe and Yanam.

       Presently    the    Pondicherry    State       Coop.      Bank        is   functioning     with   its

20 branches and one extension counter in the entire Union Territory of Puducherry.

       The Bank obtains funds by way of share capital from the member-Institutions and

also from the Government, increasing the reserve, mobilization of deposits from

individuals and institution and also through borrowings from NABARD and State

Government.        The    main   object   of    the       bank        is   rendering   services     to   its

customers/members/member-institutions by providing following various types of loans to

the Societies/Individuals.

               1) Short term (agriculture)
               2) Medium term (agriculture)
               3) Short term loan (others)
               4) Medium term loan (others)
               5) Long Term loan (others)
               6) Cash credit to Weavers Coop. Societies
               7) Cash credit to Consumer Cooperatives
               8) Cash credit to others
               9) Medium term loan to Salary Earners Coop. Societies
              10) Jewel loan for agricultural purposes
              11) Jewel loan for non-agriculture purposes.
              12) Non-farm sector loans to individuals
              13) Loans to customers
              14) Cash credit loans & Medium Term loan to Sugar Mills & Spinning Mills
              15) Cash credit/medium term loans to consumer stores
                                           -:         2          :-
       Under the area of banking the Pondicherry State Coop. Bank is also extending its

services to the customers through its branches.          The bank services   extended to

Individuals and Institutions are as follows.

                      a) Locker facilities
                      b) Issue of Demand Drafts
                      c) Additional interest of 0.5% to senior citizens
                      d) Savings Bank and current account facilities
                      e) Jewel loan facilities
                      f) House Mortgage loan
                      g) Overdraft to individuals and executions
                      h) Small scale industries finance
                      i) Consumer durable loans
                      j) Self help group finance

       Apart from the above, the Pondicherry State Coop. Bank is also implementing

welfare schemes to farmers as well as to the members which are as follows.

              a) Loans through DRDA (SJSY)
              b) Loans through B.C. Corporation
              c) Loans through PADCO
              d) Milch loans to members under subsidy scheme
              e) Comprehensive crop insurance scheme to farmers
              f) Personal accident insurance scheme to the KCC card holders.
              g) Loans to Self-Help Groups.

   The    financial   particulars   in   the   Banking    activities   extended   to   the

Individuals/Institutions as on 30.06.2008 are furnished separately in the Annexure.

            FIGURES AT A GLANCE -     JUNE 2008

                                           (Rupees in Lakhs)
Sl.No.              PARTICULARS                   Jun-08

  1      OWNED FUNDS
         a. Share Capital (Indls & Society)         878.56
         b. Share Capital (Government)              187.84
                        TOTAL                      1066.40

  2      RESERVES                                  3242.06
                        TOTAL                      4308.46

  3      DEPOSITS                                 30014.00

         a. Nabard Borrowings                       393.18
         b. State Govt. Borrowings

  5      WORKING CAPITAL                          36634.96

  6      CASH
         a. Cash & Bal with Notif. Banks           3134.82
         b. Balance with other Banks                 10.14

         a. Short Terms & Call Money               1000.00
         b. Government & Other Sec.               10080.95

  8      LOANS AND ADVANCES                       20458.08

  9      No. of BRANCHES                                 20

  10     No. of EMPLOYEES                               217

  11     PROFIT(+) /LOSS(-)                          -26.24

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