53rd Annual Report 2023-24 PDF

Performance Highlights of the Bank for the F.Y. 2023-24: Accounts, there was a broad based growth in saving The business mix of your Bank registered a growth of 7.20% deposits as on 31st March, 2024. The existing CASA variants during F.Y. 2023-24. The CD ratio of your Bank...

Performance Highlights of the Bank for the F.Y. 2023-24: Accounts, there was a broad based growth in saving The business mix of your Bank registered a growth of 7.20% deposits as on 31st March, 2024. The existing CASA variants during F.Y. 2023-24. The CD ratio of your Bank increased namely SB Elite, SB Silver, SB Gold, CD Elite, CD Silver, CD from 52.47% to 53.98%. During the year, your Bank’s Gold, SB NexGen Account and TJSB Sanyukta Account has performance on all financial parameters was encouraging. contributed to maintain the low-cost deposits of your Bank The Net Profit of your Bank grew by 25.42%. at 30%. In absolute terms, your Bank’s CASA component has increased by
251 crores. Gross NPA of your Bank has reduced by 33 basis points as compared to last year, the net NPA of the Bank continued to The newly launched CASA variant ‘TJSB Sanyukta Account’ remain at ZERO level and Provision Coverage Ratio (PCR) coupled with ‘TJSB Sandesh’, an application for voice-based continued to be 100%. The owned funds of your Bank alerts for seamless QR code transactions, have played a remained extremely strong at
1719 crores. The total vital role in boosting QR code and CASA numbers. revenue of your Bank increased by
119 crores from
1210 (
in crore) crores in F.Y. 2022-23 to
1329 crores in F.Y. 2023-24. Type of 2023-24 % 2022-23 % Deposits Financial Highlights: Current 1,367.11 9.37 1,222.08 8.90 (
in crore) Savings 2,945.85 20.19 2,839.93 20.66 % Increase / Particulars 31.03.2024 31.03.2023 (Decrease) Term 10,274.91 70.44 9,680.82 70.44 Business Mix 22,462.45 20,954.32 7.20 Total 14,587.87 100.00 13,742.83 100.00 Deposits 14,587.87 13,742.83 6.15 Advances 7,874.58 7,211.49 9.19 While the Bank continues to lay emphasis on low-cost Gross Profit 280.26 291.28 (3.78) deposits i.e., CASA, your Bank was able to show a reasonable growth of 6.14% in Term Deposits and maintain Net Profit 216.36 172.51 25.42 its Cost of Deposits at 5.08% due to effective interest rate Owned Funds 1,719.32 1,548.59 11.02 management. Gross NPA 3.66% 3.99 % (0.33) Net NPA 0.00 % 0.00 % - Advances (Up to 1 crore and Commercial Credit): C.R.A.R. 17.57% 16.93 % 0.64 1) Advances up to 1 crore: RBI vide its circular No. DOR (PCB). BPD. Cir. Deposits: No.10/13.05.000/2019-20 dated 13th March, 2020, has mandated UCBs to have at least 50% of their aggregate During F.Y. 2023-24, total deposits of your Bank showed a loans and advances (as per para 2.2.1 of the above circular) growth of
845 crores with a sequential growth rate of comprising loans of not more than
25.00 lakhs or 0.2% of 6.15%. The share of CASA deposits in the total deposits of their Tier I Capital, whichever is higher, subject to maximum your Bank remained same as last year at 29.56 %. of
1.00 crore per borrower/party in a phased manner up to In spite of reduction in balances in Institutional Savings 31st March, 2024. 7 Your Bank has taken necessary steps in this direction and Accordingly, as per revised guidelines, the average priority has created a separate vertical for mobilising small ticket sector lending requirement prescribed for F.Y. 2023-24 was advances. Your Bank has appointed Business Facilitators. 60% and we are glad to inform that your Bank has surpassed Your Bank has undertaken promotion of schemes like Prime the target by achieving 63.19%. Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Credit Monitoring Cell: Enterprises (CGTMSE), Special Credit Linked Capital Subsidy Credit Monitoring Cell (CMC) plays an instrumental role in Scheme (SCLCSS), loans to Self Help Groups, Priority monitoring of Retail and Commercial advances portfolio of a Housing loan, Group Finance, Micro Finance, Gold loan, Bank. Your Bank’s Credit Monitoring Cell does periodic etc. Your Bank has been on boarded on PMEGP portal follow up to control delinquencies and generates early in all states. The advances up to 1 crore has increased warning signals which helps to control slippage into NPA. from
c2424 crores in F.Y. 2022-23 to
2785 crores in F.Y. 2023-24. Post Sanction Monitoring Cell: Post Sanction Monitoring Cell (PSM Cell) continues to play 2) Commercial Credit: an important role in monitoring and supervision of During the year under report, your Bank’s credit showed a disbursements of commercial advances above
10 crores. growth of
664 crores over the previous year. The net credit This Financial Year, with a view to ensure better control over of your Bank increased from
7211 crores to
7875 crores quality of assets, compliance of sanction terms as well as to registering a growth rate of 9.21%. avoid revenue leakages, your Bank has revised the scope of PSM Cell to cover commercial advances sanctioned above The fresh disbursement of loans of your Bank during the
5 crores. year was more than
3289 crores. On the other hand, there were repayments in term loans to the tune of nearly
1641 Further, with a view to enhance the monitoring purview, crores, which clearly shows the quality of the loan portfolio. your Bank has adopted dual legal vetting system i.e., Internal & External legal Vetting of title documents for New To augment growth in advances above 1 crore, your Bank to Bank Customers (NTB) above
5 crores which has formed a SME Credit Cell to target SME customers. strengthens & refines the legal and documental aspects. Further the focus for the year was to add New to Bank customers in commercial credit and to diversify the Bank’s The aforementioned processes work as a measure towards exposure in untapped industries/segments. Your Bank has improving asset quality and improving collection efficiency. also introduced a new product ‘ODS Drop’ and has laid emphasis on products like Asset Backed Credit and Working Non-Performing Asset (NPA): (
in crore) Capital facilities like Pledge/ Overdraft against Security, etc. Particulars 2023-24 % 2022-23 % RBI vide its circular No. DOR.CRE.REC.18/07.10.002/2023- Gross NPA 287.93 3.66 288.09 3.99 24 dated 8th June, 2023 has extended a gliding path for PSL targets by an additional period of 2 years i.e., up to Net NPA NIL - NIL - 31.03.2026. Total Advances 7,874.58 7,211.49 8 Hon. Minister of Home Affairs of India for your Bank’s Capital Adequacy: contribution towards National Urban Cooperative Finance Your Bank’s capital base continues to be strong and Capital and Development Corporation Limited (NUCFDC) thereby to Risk weighted Assets Ratio (CRAR) is at 17.57% on 31st observing the principle of ‘Cooperation among March, 2024 as against previous Financial Year’s 16.93%, Cooperatives’. which is well above the average in the banking sector. Capital adequacy of your Bank improved due to plough back Profitability: of profits. In the F.Y. 2023-24, your Bank’s gross profit was
280 High percentage of CRAR indicates Capital strength of your crores. Net interest income of your Bank, which is the Bank which prepares the Bank in advance to comply with difference between interests earned on loans & Basel II or III recommendations, if made applicable to Urban investments and the interest paid on deposits & Co-operative Banks at any time in future. borrowings, increased by 4 % from
514 crores to
534 crores. In percentage terms, Net Interest Margin (NIM) of During the F.Y. 2023-24, your Bank did not raise Tier II your Bank was 3.66%. capital in the form of Long-Term Deposit (LTD), as the existing capital funds were sufficient to take care of Bank’s Another key profitability parameter is Return on Assets growing business. (RoA), which stood at 1.38% during the F.Y. 2023-24 as compared to 1.16% during F.Y. 2022-23. Branch Expansion: The net profit of your Bank increased from
173 crores to During the F.Y. 2023-24, RBI approved your Bank’s request
216 crores. to open 2 new branches and 1 offsite ATM. Your Bank also received approval from RBI to set up 3 ATPMs in Goa, a Dividend: unique initiative to accept Electricity Bills and Water Bills In terms of provisions of AS-4 issued by ICAI, effective from payment using ATM machine. the accounting period commencing on 01.04.2017 RBI has granted special permission to Financially Sound and onwards, dividend which is subject to approval by the Well Managed Co-operative Banks for branch expansion in shareholders at the Annual General Meeting has not been the approved area of operation in order to rationalize the included as a liability in these financial statements. process of branch opening and to enable such Urban Co- operative Banks to tap growth opportunities in the sector. Appropriation of Profit for F.Y. 2023-24: Being one of the leading cooperative Banks to be self- To present a true and fair value of the reserves, other funds certified as “Financially Sound and Well Managed” (FSWM) and liabilities as on the date of Balance Sheet before the Bank, your Bank was eligible to open 5 more branches under shareholders, the Bank has given effect to the appropriation automatic route in this Financial Year. Accordingly, your of profits for the current year in the financial statements for Bank has opened a branch at Porvorim (Goa) on 26th March, the year ended 31st March, 2024 itself, subject to approval 2024 thereby, the total number of branches of the Bank is at the Annual General Meeting. 139 as on 31st March, 2024. Your Bank has opened its branches at Moshi (Pune) on 17th 14 April, 2024 and Baramati on 18th April, 2024. Your Bank will Ø Received the first prize for ‘Tech Talent & shortly open branch at Anand Nagar (Thane) and Wagholi Organization’, first Prize for ‘Digital Sales, Payment (Pune). & Engagement’ and Second prize for ‘Best Technology Bank (Technology, Infrastructure, and Strategic Branch Relocation: Resilience)’ at the IBA’s 19th Annual Technology Considering the prospects of shifting to a better location, Conference, Expo & Citation 2022-23 your Bank has strategically relocated Louiswadi, Latur, Ø Received the award for ‘Most Future Ready Bank of Palghar, Akola and Indore branches. the Year (Co-operative Bank)’ at the 4th Annual BFSI Excellence Awards 2023 on 27th October, 2023, Board of Management: Mumbai As per RBI guidelines, the Bank has duly constituted the Board of Management (BOM) comprising of 6 members. Corporate Governance: The BOM oversees banking related functions as mandated The Bank believes in ensuring transparency in financial by RBI. statements and protecting shareholders’ interest as the key attributes of good Corporate Governance. Adherence to Amendments to Bye-Laws: these attributes ensures transparency of banking In view of the suggestions from appropriate authorities, transactions. The strategy is being executed within a sound amendments to the Bye-Laws is proposed. governance framework that seeks to balance the interests of all stakeholders to ensure sustainable value creation. Awards and Recognition: During the F.Y. 2023-24, your Bank has won many Membership: accolades as listed below: The total number of members of the Bank as on 31st March, Ø Recognized as the Best Digital Bank of the Year in 2024 stood at 70005. June 2023 by the National Federation of Urban Cooperative Banks and Credit Societies Ltd. Appointment of Statutory Auditor: (NAFCUB) As your Bank’s asset size was more than
15,000 crores Ø Received the 2nd prize as the ‘Best Cooperative as on 31st March, 2023, the Statutory Audit for the F.Y. Bank’ from Maharashtra Cooperative Banks’ 2023-24 was conducted by two Audit Firms as per RBI Federation Guidelines. The resolution is placed before General Body to authorise Board of Directors to appoint minimum two Ø Received the award ‘Best Security Practice in Statutory Auditors and to fix their respective Banking Sector’ at the CISO Summit 2023 Awards remunerations for the F.Y. 2024-25. Ø Recognized as the finalist for the award ‘Best Security Practices in Small and Medium Financial Corporate Social Responsibility: Banks’ at the CISO Summit 2023 Awards Your Bank acknowledges social responsibility by donating a 15 4. Cash Flow Statement (AS - 3): 6. Property, Plant & Equipment & Intangible Assets: The cash flows are reported using the indirect method a. Fixed Assets including intangible assets are carried at whereby profit before tax is adjusted for effects of historical cost less amortization / depreciation transactions of non-cash nature, deferrals or accruals of accumulated thereon. Cost comprises of purchase price, past or future cash receipts or payments and items of including non-refundable taxes and any directly income or expenses associated with investing or financing attributable cost of bringing the asset to its working cash flows. condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price. 5. Revenue Recognition (AS - 9): b. Gains or Losses arising from de-recognition of fixed a. Income from advances - As per RBI directives, in assets are measured as difference between the net respect of accounts classified as Standard, interest and proceeds on disposal and carrying amount of the assets and other income is recognized on accrual basis; income from are recognized in the Profit and Loss account when the Non-Performing Assets is recognized on realization and in asset is derecognized. case of advances with the Recovery Department of the c. Impairment: The Carrying amounts of assets are Bank, the recoveries in the accounts are first appropriated reviewed at each balance sheet date for any indication of towards principal outstanding and then towards interest impairment based on internal/external factors. An income. Loan processing fee is accounted on an upfront impairment loss is recognized wherever the carrying basis. amount of an asset exceeds its recoverable amount. The b. Income from Investments - Interest income from recoverable amount is the greater of the asset’s net selling investments is recognized on accrual basis considering the price and value in use. face value of investment and the rate applicable. Discount 7. Depreciation on Fixed Assets: on T-Bills and other discounted instruments are recognized a. The depreciation on fixed assets is calculated on the on a straight line basis over the period to maturity. Trading basis of methods and rates as mentioned below: Profits/Losses on securities are recognised on a trade-date basis. Income from Mutual Fund is recognized as income in Particulars Method of Rate of Depreciation Depreciation the year in which the redemption takes place. Furniture and Fixture Written Down Value 15 % c. Income from Information Technology services - Furniture and Fixture Written Down Value 25 % Income from sale of customized software is recognized as (safe deposit vault) and when the license is granted to the counter parties. Plant and Machinery Written Down Value 25 % Electrical Fittings Written Down Value 15 % d. Commission on sale of life insurance and mutual fund Assets taken on Amortised over products by the Bank is recognized as and when the Finance Lease the Lease Term products are sold. Office Premises Written Down Value 10 % e. All other Income is recognised on accrual basis unless Capital Expenditure on Written Down Value 10 % Rented Premises specified otherwise. The commission on Letters of Credit / Office Equipment Written Down Value 25 % Guarantees, Locker rent is recognised as income in the year in which it is received. Dividends on shares of co-operative Vehicles Straight Line 30 % and other institutions is recognised as income when the Computers & Peripherals Straight Line 33.33% (including computer software) right to receive the dividend is established. 50 b. The Bank operates as a single unit in India, hence G. Earnings Per Share : separate information regarding geographical segment is Particulars 2023-24 2022-23 not given. Net Profit after Tax attributable to c. The previous year’s figures are indicated in brackets. shareholders (before appropriations) 216.36 172.51 (
in crore) E. Related party disclosure: Weighted Average no. of shares 2.16 2.18 outstanding during the period (in crore) The Bank is Co-operative society under the Multi-state Co-operative Societies Act, 2002 and there are no Related Basic and Diluted Earnings Per Share (
) 100.35 79.30 parties requiring a disclosure under the Accounting Nominal Value per Share (
) 50/- 50/- Standard-18, issued by ICAI, other than Key Management personnel, viz. Mr. Sunil P. Sathe, upto 31.05.2023 and H. Deferred Tax Assets / Liabilities : Mrs. Subbalakshmi M. Shirali from 01.06.2023, the The Deferred tax assets/liabilities as at 31st March , 2024 Managing Director and Chief Executive Officer (MD & and break-up of its components are as follows: CEO) of the Bank for F.Y. 2023-24. (
in crore) Deferred Addition / Deferred tax Asset / (Reversal) tax Asset / F. Lease rent payable : (Liability) during (Liability) Particulars as at the as at The breakup of future lease payables as required by AS-19 31st March 31st March is given as under: 2023 year 2024 (
in crore) Depreciation 2.80 0.09 2.89 Particulars 2023-24 2022-23 Special Reserve (9.42) (1.26) (10.68) Future lease rental payable as Salary leave (0.24) 1.07 0.83 at the end of the year : encashment & gratuity Provision for 6.11 1.02 7.13 - Not later than one year 27.01 26.09 Std. Assets - Later than one year and not 79.59 75.01 Provision for 0.39 (0.21) 0.18 later than five years Advances (COVID) - Later than five years 49.22 40.07 Lease Rent payable 2.56 (0.06) 2.50 (Rent) Total of minimum lease Provision for Bad - payments recognized in the 2.67 2.67 27.27 25.14 & Doubtful Debt Profit and Loss Account Miscellaneous Assets 0.68 (0.58) 0.10 for the year Provision for assets Total of future minimum lease 12.09 - 12.09 sold to ARC sub-lease payment expected NA NA to be received under Net Deferred Tax Asset 17.64 0.07 17.71 non-cancellable sub-lease Sub-lease payments I. Intangible Assets : recognized in the Profit and NA NA The fixed asset block for “Computer Peripherals” includes Loss Account for the year Computer Software, the details of which are as follows: 57  Annexure A Name of Bank : TJSB Sahakari Bank Ltd. Registered Office Address : TJSB House, Plot No. B-5, Road No. 2, Wagle Estate, Thane (West) - 400 604. RBI Licence No. and Date : UBD MH 419 P, Date: 21/01/1985 Multi-state Licence No. and Date : MSCS/CR/287/2008, Date: 23/10/2008 Area of Operation : States of Maharashtra, Karnataka, Goa, Gujarat and Madhya Pradesh Particulars for the year ended : 31st March, 2024 Number of Branches, Extension Counters and Head Office : 139 + 0 + 1 = 140 Number of Shareholders A. Members : 70005 B. Nominal Members : 20474 (Amount
in crore) Paid up Share Capital : 107.14 Reserves and Other Funds : 1394.62 Deposits : Saving : 2945.85 : Current : 1367.11 : Term : 10274.91 Loans and Advances : Secured : 7703.67 : Unsecured : 170.91 In Percentage : Advances to Priority Sector : 63.19 % : Advances to Weaker Section : 6.00 % Borrowings : Other Banks : 0.00 : Long Term (Subordinated) Deposits : 0.00 Investment : 7512.25 Overdue in percentage (Advances) : 3.66 % Capital Adequacy : 17.57 % Gross NPA : 3.66 % Net NPA : 0.00 % Profit (for the Financial Year 2023-24) : 216.36 Total Employees : 1665 Officers & Others : 1637 Sub-staff and Watchman : 28 Working Capital : 16635.66 79