We have garnered deposits to the tune of Rs. 809.06 crores as on 31.3.2016 against previous year's Rs. 777.59 crore, thus making impressive growth over previous year.
Not willing to be left behind, our loans and credit portfolio registered a healthy growth - taking last year's figure of Rs. 557.09 crore to Rs. 602.22 crore. Gross NPA at the end of this year has been 1.26% whereas Net NPA stands at 0.60% after sufficient provisioning. The Bank has recently taken up efforts to bring down NPA figure to almost Zero and the encouraging results have already started pouring in.
Our bank is playing the role given to it by the nation's regulatory agencies including Reserve Bank of India with full enthusiasm and initiative with the result that our Priority Sector advances are much higher than the obligatory 40%.
While on the topic of priority sector advances, it seems in place to mention the admirable initiative taken by our bank to do something worthwhile in the field of Financial Inclusion. Our Micro-finance portfolio is a booming one and we have a reason to feel happy with the experience and results achieved so far, we have expanded the area and our commitment for the same. Not only our rural and semi urban branches but also the urban and metro branches are offering micro finance to eligible self-help-groups.
Over the year, Bank's share capital has grown from last year's Rs. 4133.24 lacs to present year's Rs. 4466.06 lacs. This also explains why we are very comfortably placed in view of RBI's norms of CRAR. As against 9% stipulated, our CRAR is 13.85%.
Net Profit for the year after tax is Rs. 734.71 lacs. It is remarkable in view of the fact that in this year Bank has invested heavily in new technology to be able to substantially improve our customer service by offering internet banking, SMS banking, Debit card feature so that our card holders would be able to do shopping at Point of Sale and also online. Not only this, CDMs have been installed at every branch and BC office so that our customers would be able to deposit cash into their account before and after business hours of the bank also.
We have evolved a well-defined and laid out system and procedure of auditing to cover all aspects and areas of operations.
The statutory auditors M/s. MRS & Co., Chartered Accountants have been quite appreciative of the functioning of our Bank and have gone to the extent of saying that they have found our systems and procedures much better compared to other cooperative banks audited by them.
In compliance of the instructions of RBI, concurrent audit of all branches of the bank is done on regular basis by retired senior bankers who had been working in different public sector banks.
A well-qualified chartered accountant firm of Delhi has been engaged by the Bank as Internal Auditor Consultant to carry out internal audit and suggest improvements wherever necessary. Many suggestions received from the firm have proved to be quite useful for the bank. In addition the surprise internal audit of one branch is performed by the Manager of another branch. Audit of Loans portfolio also is separately being done by a seasoned banker.
Bank's senior officers pay surprise visits on random basis to different branches for surprise checks and for proper guidance.
It won't be inappropriate to enlist here some other areas of functioning which help us put the best foot forward in terms of excellence in customer service and overall well-being of the socieity.
All branches of our bank as well as Head Office are functioning with CBS technology outsourced from FIS - the world's leading CBS solution provider and this has enabled us to offer various other technology - based services like ATM-cum-Debit Cards, ATMs and CDMs, net-banking, sms banking at our branches etc. Many more value added services like Mobile banking, e-commerce, tablet banking are also in the pipeline and will be launched soon. RBI has already granted us license for Mobile Banking and the process is underway to implement it soonest possible.
After getting connected ourselves with Rupay i.e. NFS network as a sub-member, we have installed ATM-cum-CDMs at all of our branches and BC offices. Thus, our customers are able to deposit money into / withdraw money from their accounts even after the bank branches are closed. However, at some branches, CDMs have been kept inside the branch in view of prevailing law and order situation.
The bank has obtained IFS Codes for all of its branches this year after getting connected with RBI on Cloud model and is now participating in the RTGS / NEFT as a direct member of NACH / RTGS / NEFT system.
Our bank offers the facility of SMS banking whereby the account holders can send certain codes via SMS to get information about their balance in account, cheque status etc. They can stop payment of their cheque through this facility. Besides this, SMS alerts are generated automatically for transaction in customers' accounts so that they may keep track of what is happening in their bank account.
Shivalik Bank has got Mobile Banking license from RBI and preparations are going on for earliest launch of the facility for our customers.
In order to offer maximum benenfits of the latest technology to its customers, Shivalik Bank has launched Micro ATMs which are essentially a hand-held battery operated, net-enabled machine that is connected to bank's systems. This highly advanced machine has got a touch screen, biometric sensor, printer, card swapping mechanism, keypad, digital camera etc. Bank's representatives have been given such Micro ATMs which are being used to open various deposit accounts, take and store photographs and finger prints, offer print outs of debit and credit transactions in the account, mini statements. ATM cards can also be swiped on this machine to authorise debit of a customer's account whenever a customer is in need to make a withdrawal. The bank's representative thus becomes a mobile branch of the bank - opening accounts, accepting cash deposits and cash withdrawals - all of which get simultaneously recorded at the bank's systems.
In order to protect the bank and its constituents from unnecessary financial risks, Shivalik Bank continues to honour its decision not to grant any advance against the security of shares and debentures. Similarly, bank does not invest in share market also. For the purpose of investments, bank chooses only govt. and trustee securities, debt instruments and maintains its deposits with various Scheduled banks only.
Shivalik Bank is offering forex services as Category-II Authorised Dealer by RBI. Moreover, the Bank continues to be a subscriber of DICGC (Deposit Insurance and Credit Guarantee Corporation) scheme as per requirement of RBI and is thus extending the benefits of it to bank's constituents also.
The Bank complies in letter and spirit, with the demands, suggestions, guidelines, instructions of Reserve Bank of India as contained in their various letters and circulars.
All branches of the Bank and Head Office are fully air-conditioned and are a pleasure to the eyes for the visiting public.
Home Banking scheme, Family Banking, Neighbourhood banking schemes as implemented by the Bank place us a class apart from other banks and are highly appreciated by the beneficiaries of the same. In house training facility is available to all staff members through video conference / tele-conference and even webinar.
We have started providing finance against gold ornaments under Term Loan scheme also with minimal paper work and formalities. This scheme is gaining popularity among our customers. Besides this, the bank now also entertains requests for Crop Loan and Long Term Agriculture Development Loan to the eligible candidates.
In order to fulfil its commitment to reach out to the weaker sections of the society, the bank has come up Loans to Retail Traders. Under this scheme, bank doesn't insist on balance sheet, profit and loss account or income tax return from the applicants. Loans are granted on the basis of honesty, desire to grow and past experience of the borrower and against collateral of property.
We take this opportunity to share with you our agenda for the near future.
We already have got a network of 21 branches and 12 BC offices as on 31st March, 2015. We have applied for permission to expand our branch network to adjacent states viz. NCR Delhi, Haryana, Himachal Pradesh, Rajasthan, Uttarakhand and Chandigarh U.T.