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RDCB - ThemalSMans Big ankB

SHRI RAJKOT DISTRICT CO-OPERATIVE BANK LTD., RAJKOT

HIGHLIGHTS

(AS ON 31-03-2006)

1) Bank was registered in 1959 and have commenced working in 1960.

2) Bank is holding business License No. RPCD-AHM-55-C dt. 14/911994.

3) Bank is having 127 branches in the district.

4) Bank having 65 its own Branch building including head office.

5) 72 branches having its own Safe Deposit Lockers facilities (including

H.O.)

6) Bank is having 770 employees as on dt. 31/03/2006 (118 in Head Office +

625 in branches).

7) 101 branches including H.O. are Computerized and remaining will be

covered within quarter to 100% computerization.

8) Since last 31 years, bank sibtainingo uditA Class A.

9) The total deposit is Rs. 677.68 crores, which consists 57.03% law cost
deposit.

10) Bank is having share capital of Rs.2135.01 lakhs, Reserve fund and other
funds Rs.9735 lakhs, working capital Rs. 9391 lakhs.

11) Total investment is Rs. 20,670 lakhs. (with building, furniture &
computer).

12) Bank has obtained loans of Rs. 11,906.90 lakhs.

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13) Total advances outstanding are Rs. 674 Crore.

14) Bank is earning profit since its beginning. As on 31 st march, 2006 after
providing enough provision, the Net Profit was of Rs. 1065 lakhs.

15) Bank is paying maximum dividend according to the provision of the Act,
since last 14 years.

16) As on 31st March, 2006 the cost of management was 2.28% (average).

17) As on 31-3-06, financial margin of the bank is 3.61% and net margin is
1.47% level (average).

18) Capital risk adequacy ratio as on 31st March, 2006 is 12.80%.

19) Since last 12 years, Bank is receiving first prize from the GSCB for the
best recovery performance. As on 30th June, 2006 recovery was 99.87%.

20) Rate of interest on deposits are between 4% to 7%.

21) Maximum Short Term Agriculture Loan issued during the year 2005-06
was Rs. 64,714.48 lakhs at the rate of interest from 7.5% to 10.5% as per
Government ofndiasIoublingd critera.

22) Out of 585 non-subordinate staff, 231 employees are trained as on date
31/3/2006.

23) As on year ending 2006, the Non-performing Assets were Rs.1881.77

lakhs, thus gross NPA is 2.79% and net NPA is 0.53% of total assets.

24) As per prudential norms bank has made the provision of Rs.2886.30 lakhs
against the requirement of Rs. 2363.50 lakhs for loan outstanding of
Rs.67,397.13 lakhs.

25) On 31st March, 2005 the total number of an affiliate borrowing PACS are
436 out of these 412 are profit making.

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26) Each societies having its own godown facilities and having independent
well qualified secretaries.

27) Average work load Per Staff during the year 2005-05 was Rs. 181.21
lakhs.

28) There are 440 PACS affiliated with the Bank. Out of 440 PACS, 3 are
overdue as on 31-3-2006.

29)

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MAIN FUND INFLOW (SOURCES OF FUNDS)

Owned deposit
Deposits
Borrowings
Others

Owned deposit
The owned funds consisting of paid capital of the bank, reserve fund, and other
reserves.

Deposits
It is sum of current deposits, fixed deposits, saving deposits, special saving
deposits, NRI deposits, inoperative deposits, etc. It is the main Cash Inflow for
any institution.

Borrowings
The borrowed funds consisting of borrowings from other banks (as per some
writer deposits of various types is also part of borrowed funds), debentures
offered to public, etc.

Others
Increase in current liabilities, reduction in debtors, fund from operations like net
income, depreciation, and reserves, less payment to creditors, reduction in
advances, reduction in inventories, reduction in cash, sold marketable securities,
etc.

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MAIN FUND OUTFLOW (FUNDS USED)

CRR (Cash Reserve Ratio) with Reserve Bank of India

SLR (Statutory Liquidity Ratio) in Reserve Bank of India approved
securities Loanable Fund
Others

CRR (Cash Reserve Ratio) with Reserve Bank Of India

The capacity of credits creation of bank is depending upon their cash flow
received. To restrict this credit creation, the reserve bank of India has directed
their terms. In case of scheduled banks and sec.18 of banking regulation act are
required to maintain the cash reserve ratio *@ 4.75% and non-scheduled bank @
3% of their demand and time liability amounts separately. The scheduled banks
are required to deposit the cash reserve ratio amount with Reserve Bank of India
while the non-scheduled banks are required to maintain separate account for this.
The Reserve Bank of India is also empowered to raise the cash reserve ratio up
to 15% only in respect of scheduled banks. It is maintained reported to RBI
every fortnight.

*30th April RBI declared new credit policy and as per that RBI reduced CRR
with 0.25%
Demand and time liability:
Time liability is related with time like, fixed deposits
Demand liability is related with the demand like, Current deposits, inoperative
deposit, and matured fixed deposits

SLR (Statutory Liquidity Ratio)

The cash flow for regular banking transactions mainly depends upon deposit
received in the bank. The reserve bank of India there fore puts some restrictions
on utilization of these amounts. The scheduled and non-scheduled banks are

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required to deposit 25% amount of their demand and time liability amount in the
security approved by reserve bank of India. These securities are converted into
cash ndtherefo theyaretrmedasliquidassetsand25% amounttermedas
liquidratio.TheresrvebankofIndiaisempowered to raise this liquidity ratio from
25% to 40%. It is maintained average fortnight and reported to RBI.

Loanable Fund
Credit deposit ratio is not more than 70%.
Loanable funds means amount of money, which is applicable for lending. Three
main factors own fund, deposits, and borrowings decide it. Advances can never
be more than loanable fund.
Loanable fund is a total of:

75% of own funds

70% of deposits

100% of borrowings

Others
Purchase of fixed assets, purchase of marketable securities, addition to advances,
addition to inventories, payment to creditors, payment of dividend, etc..

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Meaning of CREDIT
Thewordcreditisactualyderivdfrom theLatinwordCreerd.Crered
meanstohavetrustorfaith.Thuscreditisdirectlyrelatdwith trust. That is
whyStateFordstatedthatCreditisnothingmorethanthatoftrust.Bythiswe
can say that credit is a tool that is resulted by the complete mutual trust/faith.
Creditcreationimpliesasituationwhenabankmayreceiv ntrestimply by permitting
customer to overdraw their accounts or by purchasing securities and paying for
them its own cheque or bank may pay amount to borrower or directly
toselerofgoods homw againstborrowergetamount.

CREDIT MANAGEMENT
Credit management means the total process of lending start from inquiry from
potential borrower to recover the lending amount from borrower. Whenever my
study is concern, credit management in sense of banking sector is the set of
activities like Except application, loan appraisal, Shakh posting, monitoring,
recovery, NPA management, etc.
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