Chairman’s Note – TIRUMALA CO-OPERATIVE URBAN BANK LTD

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CHAIRMAN’S REPORT TO THE SHAREHOLDERS

I warmly welcome you all to the 26th Annual General Meeting of our esteemed Bank on behalf of the Board of Directors.

Today, I have the privilege of presenting the 26th Annual Report, which includes the Audited Accounts as of 31st March 2024, the Profit and Loss Account for the Financial Year 2023-24, and the Statutory Auditors’ Report for the corresponding year.

BANKING SCENARIO :

The financial year 2023-24 has been a period of recovery for the banking sector, particularly for Co-operative Banks, following consecutive epidemics. As the economy gradually recovers from the pandemic’s disruptions, the banking industry is also showing signs of revival. While deposit growth has been robust, advances have also shown positive trend. Despite these industry-wide challenges, our Bank has demonstrated commendable performance, particularly in the growth of deposits and advances.

These are captured in the table below :

Particulars	AS on 31.03.2024	AS on 31.03.2023	Growth	Growth%
Deposits	4253.49	3291.92	961.57	29.21
Advance	3156.59	2401.91	751.68	31.30

Our Bank has made significant strides in recovering NPAs, maintaining a healthy portfolio with substantial recoveries. As of 31st March 2024, the Net NPA’s (Gross NPA Less Provision for NPAs) stands at a 1.23% of Net Advances.

NETWORTH :

The net worth of the Bank as of 31st March 2024 is Rs. 546.39 Lacs, marking an increase of Rs. 103.65 Lacs compared to the previous year.

MEMBERS & SHARE CAPITAL :

We have seen a dynamic change in our membership and share capital from 1st April 2023 to 31st March 2024. The detailed list is provided in Annexure-A, which we request the general body to confirm and ratify.

The admission and redemption of members in Share Capital areas follows.

S.No.	MembershipoftheBank	NoofShareHolders	ShareAmount
1	@Beginning of the year (01-04-2023)	2899	2.23.21.900
2	Admitted during the year	93	89,99,700
3	Redeemed during the year	37	10,16,300
4	@End of the year (31-03-2024)	2955	3.03.05.300

LOANS & ADVANCES :

Our Bank has sanctioned a significant amount in loans and advances from 1st April 2023 to 31st March 2024. We request the general body to confirm and ratify these details.

S.No	TypeofLoans	NoofA/cs	Loan Amount
1	Loans against Fixed Deposit Receipt	28	328.14
2	Secured Overdrafts	12	373.50
3	Overdraft aginst FD	9	239.99
4	Secured demand loans	1	2.80
5	Secured Term Loans	42	882.80
6	Gold Loans	20	42.10
7	Personal Loans	3	3.50
8	CCOD	3	4.50
	TOTAL ADVANCES SANCTIONED	118	1877.33

NPA ACCOUNTS :

The statement of NPA Accounts is placed in the website.

INVESTMENTS :

Our Bank has made prudent investments in SLR and Non-SLR Deposits during the year 2023-24.

I. i.	SLRInvestments: Govt.Securities (heldtomaturity)	7,22,20,067
II.	NonSLR/OtherInvestments(Depositswithotherbanks):
i.	DepositswithIDBIBank.	12,68,968
ii.	DepositwithSVCBank	1,00,00,000
iii.	DepositwithJanaSmallFinanceBank	1,50,00,000
iv.	DepositwithDCBank	30,00,000
v.	Depositwith AXIS Bank	5,00,000
VI	Equitas Small Fin Bank	1,25,00,000
Vii	IDFC Call Money	1,50,00,000
	TotalDeposits	5,72,68,968
	TotalInvestment(I+II)	12,94,89,035

Bank has provided necessary amortization of premium on GOI Securities (wherever applicable) as per the extant RESERVE BANK OF INDIA guidelines. There are no defaults in interest receipts from GO securities.

INSURANCE :

We have renewed our Bankers Indemnity Policy and the General Insurance Policy on fixed assets. We have also paid the insurance premium to DICGC Ltd., ensuring that deposits up to Rs. 5.00 lakh are covered.

New Branch & ATMs :

We have expanded our physical presence by opening a new branch at Medipalli (near Uppal) and installing two ATMs at both branches. The new branch has been performing well and contributing positively to our business. Both ATMs are functioning smoothly, providing convenient services to our customers.

Digital Products :

Our Bank has obtained a license to commence mobile banking operations, and the implementation process is underway. Currently, Immediate Payment Service (IMPS) is active, and payments through QR code are operational.

Customer Services :

We encourage all members to avail of the nomination facility if they haven’t already, register their mobile numbers and email IDs to receive SMS alerts for transactions and important communications, and dial our customer contact number (9494184061) for resolving queries on products and services.

You may please Advise bank about disposal of term deposits on maturity. You are requested to Send feed back to improve products/services on e-mail or by post at Bank’s address.

Legal heirs of deceased members are requested to submit the share certificate/s along with claim form to the Bank for settlement of claims.

Transfer of Unpaid Dividend to Reserve Fund :

As per the co-operative Act and our bye-laws (Bye Law No 44 Page No 30&31), any dividend remaining undrawn for three years after being declared shall be forfeited and carried to the Reserve Fund of the Bank. Any unpaid dividend falling in the above category will be transferred to the Reserve Fund of the Bank.

Comparative Performance of the Bank :

We have prepared a comparative performance report of the Bank for the years ending 31.03.2023 and 31.03.2024. The details are as follows

COMPARATIVE PERFORMANCE OF THE BANK :

S.No.	Particulars	Year Ending 31.03.2023	Year Ending 31.03.2024
1.	Deposits	3291.92	4253.49
2.	Advances	2401.91	3156.59
3.	Paid-up Capital	223.22	303.05
4.	Reserves	213.48	241.91
5.	Provision for Doubtful Debts	73.44	101.14
6.	Net Worth	436.70	546.39
7.	Working Capital	3754.23	4865.20
8.	Net Profit	43.75	51.51
9.	Gross NPA	91.34	121.78
10.	Net NPA	0.77	1.23
11.	CRAR	21.16	21.43

APPROPRIATION OF PROFITS :

I am happy to inform the share holders that your Bank has posted a Net Profit of Rs 51,50,494/-for the year ending 31-03-2024 an increase of 7.44 % over the previous year’s Net Profit.

And, it is proposed to appropriate the profit (as per Bye-Laws) for the year ending 31-03-2024 as under and the members are requested to approve the same.

SNO	Particulars	Amount(inRs)
i	Net Profit as per the Audited Balance Sheet	51,50,494
ii	25% transferred to Statutory Reserve	12,87,624
iii	1% transferred to Education Fund	51,505
iv	5% transferred to Bad and Doubtful Debts Reserve	2,57,525

D E A F ACCOUNTS :

Reserve Bank Of India has introduced “Depositor Education Awareness Fund Scheme “wherein all the Banks are advised to transfer the balances lying in all type of deposit accounts where there are no operations for the last 10 years to a specified account being maintained by Reserve Bank Of India. This scheme has come into effect from 1st July 2014. Our Bank has complied with the same and the balances in all such accounts were transferred to the specified a/c. and the balance as on 31-03-2024 stood at Rs 9,41,149/-.

TAX DEDUCTION AT SOURCE :

Depositors, irrespective of the fact that they are Share Holders or not, TDS has to be deducted in case the interest paid on the Deposits exceeds Rs.40,000/-in a financial year. For senior citizens, this limit has been increased to Rs.50,000/-.

ACKNOWLEDGEMENTS :

On behalf of the Board of Directors I express my grateful thanks for the guidance and co-operation extended by the Officials and staff of Reserve Bank Of India, Central Office, Mumbaiand Regional Office, Hyderabad, The Commissioner for Co-operation and Registrar for Co-operative Societies, Govt.of Telangana, Dist.Co-op.Officer, Hyderabad (Urban) and Divisional Co-opOfficer, Golconda Division, Hyderabad.

On behalf of the Board of Directors I would like to express sincere thanks to the Urban Banks Federation for their guidance and support.

On behalf of the Board of Directors I express sincere thanks to IDFC Bank, Axis Bank, IDBI Bank, HDFC Bank, Jana Small Finance Bank, Equitas Small Finance Bnk and SVC Bank Ltd. for their cooperation. On behalf of the Board I thank the Statutory Auditors M/s P Krishnaiah& Co., Chartered Accountants for the smooth conduct of the audit and guidance.

My heart felt thanks to all the stake holders, share holders, depositors and other customers and well-wishers for their patronage and faith reposed on the Bank.

I thank all the staff members of the Bank for the good services rendered by themwith an appeal to work hard to carry the Bank to greater heights.

Lastly, I thank my Co-directors in the Board for their co-operation and the confidence reposed on me.