The Citizens Urban Co-op. Bank Ltd.

History

The Citizens Urban Co-op. Bank Ltd., Jalandhar which has emerged as a leading Urban Co-op. Bank of Northern India was infact conceived in the late 80's and started functioning on 17/11/1989 after receiving final nod from the Reserve Bank of India with 62 members and share capital of Rs. 10,500/- within operational limits of Jalandhar and Jalandhar Cantonment.

Since then, Citizens Bank has made a tremendous progress in all the Areas of Banking Sphere. Only recently, In the financial year 1999-2000, Citizens Bank has set up a mile-stone in the Urban Co-op. Banking by achieving a 100 crores Deposit target within 10 years of it's working, thereby becoming the only Urban Co-operative Bank of Northern India who has met the 1st condition of the R.B.I. for getting schedule Bank status. Marching ahead, Bank's Deposits now stands at 117.42 crores which is in itself a manifestation of people's confidence residing in the area of operation of the Bank.

Citizens Bank which has nine Branches made consistent profit gain right from it's inception and has also earned a net profit of Rs.3.64 crores during the last financial year 2000-01. Bank has achieved this profit growth despite the fact that rate of interest was reduced from 0.5%-1% during the last financial year. The most satisfying aspect for the Bank management is that, all the nine branches have recorded profit in the financial year 2000-01. Bank has also taken initiative in the loan sector & advanced Rs. 88 crores to weaker sections of the society, small-scale industries, housing, traders, shopkeepers and unemployed youths in the financial year 2000-01. This advancement has registered an increase of Rs.7 crore from  the financial year 99-2000. Further Bank has distributed 17% Dividend to it's members for the year 99-2000. The present membership of the Bank now stands at 6566 and share capital has increased to Rs. 4.09 Crores. Whereas Bank's own funds and working capital has touched to Rs. 12.19 crores and Rs. 137.52 crores respectively in the financial year 2000-01.

Infact, Bank has achieved it's objective to a great extent by helping the people of weaker sections, financing S.S.I.'s and developing infrastructure in the area of operation of the Bank.

All the nine branches of the Bank has been approved from R.B.I to open N.R.I. & N.R.E. Accounts.

Addresses and Phone No's of the Branches

Schemes for Loans & Advances

As Deposits are pouring in and crosses over a hundred crores mark, Bank's management has decided to liberalise the loan structure and loans are being advanced under priority sector to housing and weaker sections of the society at the following rate of interest i.e.

• Housing Sector -  loans are being given @ 15% for residential purpose whereas for commercial purpose, interest is being charged @ 16%.

Various loans schemes are initiated for granting loans to small scale industries, shopkeepers, traders, unemployed youth, cars & transport vehicles, marriage, house hold good items etc. at above mentioned rate of interest. Loans are also being advanced to employees of the Municipal Corporation and the employees of the other departments upto 50,000 under priority sector.

Investment

Bank's Management has made an investment of over Rs. 2 crores. 

Investment Breakup

Financial Position as on 31/3/2001

Citizens Urban Co-op. Bank is getting strength with each passing year which is evident from it's annual turnover of Rs. 1268 Crores in the financial year 2000-01 whereas the C-D ratio of the Bank recorded as on 31/3/2001 is 75%. 

Financial Position (Rs. in Crores)

Audit and Inspection

The Citizens Bank is periodically inspected by Reserve Bank of India and Co-op. Department. The audit of the bank is conducted by the Audit Department of the Punjab Government.

In addition to it, Bank has appointed it's auditors for Internal audit and checkup. It is also worth mentioning that Citizens Bank has been classified by as 'A' class co-operative Bank for the year 99-2000 by Chief Auditor, Co-operative societies, Punjab Chandigarh for a record 10th time in succession.

Rate of Interest on various deposits

The Citizens Urban Co-operative Bank Ltd. Jalandhar is the only Urban Bank in the Northern Region who is offering highest ever rate of interest on saving, recurring and term deposits as compared to the other cooperative and nationalised Banks. 

Rate of Interest on various term deposits

Saving Bank Deposit               5%

Organisation Structure

The Citizens Urban Co-op. Bank Ltd., Jalandhar is a Body Corporate registered under the Punjab Co-operative Societies Act 1961 and the rules framed there under. The bank functions according to the Bye-Laws framed by it and registered by the Registrar, Co-operative Societies, Punjab. The bank is governed under the democratically elected Board of Directors who are well reputed persons of the area. The term of the Board is 5 years. The Board has employed a Chief Executive Officer and further staff to run day to day working of the bank.

Future Plan

The citizens urban co-op. Bank, Ltd. Jalandhar is a fast growing institution which has made an indelible mark in the history of urban banking in Northern India. The Board of Directors under the chairmanship of Sh. K.K. Sharma have drawn up ambitious futuristic plans to compete with other Banking institutions in the region.

Sector wise proposed targets for the year 2001-02 

• Share Capital : The paid up share capital of the Bank as on 31-3-2001 is 4.09 crores. It is proposed to increase the paid-up share capital to Rs. 5 crore in the current financial year.

• New Branches : The citizens bank which has now nine branches is planning to setup three more branches during the financial year 2001-02, thereby increase the total number of branches to 12. The proposed places for the setting-up of new branches are :

  • Kapurthala

  • Bhogpur

  • J.P. Nagar, Jalandhar

The above branches are proposed to setup during the year subject to the approval by the RBI. For the early issuance of licenses, necessary correspondence is being made with the RBI. Besides that, to have it's own premises is the priority of every organisation. Keeping this priority in mind, citizens bank has decided to get the bank building constructed by the engineering cell of Punjab Markfed on it's 53 marla plot adjoining, Hotal Shangrila, Jalandhar and architectural assignment has already been assigned.

Deposits

Banks' management has always given significant importance to deposit mobilisation in order to strengthen it's financial position. During the current financial year too, a target of Rs. 132 crores has already been setup. Further allocation has been made to Branches and their staff for meeting the same in a stipulated time frame.

Advances

As loans and advances are the real investments of a Bank as they earn income. Keeping this in mind, the bank has decided to liberalise the loan structure and proposed to advance Rs. 98 crores to various sectors in the current financial year. Like the proceeding years, this year too, Board of Directors pledges it's commitment toward the priority sector advances.

Further Bank will also continue it's efforts to promote housing, which has emerged as a national priority, by providing financial assistance to various income groups. Above all, we believe in production by masses instead of mass production, therefore we purposes to start micro financing in a big way.

Recovery management

Recovery management continued to receive the utmost attention of the Bank in the last financial year 2000-01 and this trend would continue in the current financial year too. Serious efforts would be made to bring down the N.P.A's level which is currently stand at Rs. 1.72 crores. Bank is already planning to initiate legal actions in such cases and recovery would be effected at the earliest.

Human Resource Development

Human Resource development always find a high priority on the Bank's agenda in the past and in the financial year 2001-02 too, number of measures will be taken to upgrade and fine tuning the knowledge of it's officers and other sub-ordinate staff including sending them to training in various institutes including Agriculture, Co-op. Staff Training Institute, Jalandhar an undertaking of Punjab State Co-op. Bank Ltd. and Vai-Kunth Mehta Insitute of Co-op. Management, Pune. Besides that Executives & Directors will be send to attend various seminars and workshops which will be conducted by NAFSCOB, New Delhi to educate them about the Banking regulation act and co-operative societies act.

Introducing New Customer care Service

Customer care is always the first and foremost duty of the Citizens Bank. Keeping this aspect in mind, Bank is planning to introduce evening service at one of it's Branch. Besides that, for saving the valuable time of it's esteemed customers and to provide better and quick service, currency counting machines would be installed in the remaining seven branches. This facility has already been provided in the Head Office and it's Mithapur Branch.

Bank at Glance

The Nakodar Hindu Urban Co-operative Bank Ltd.

History

The Nakodar Hindu Urban Co-op. Bank Ltd., Nakodar is the oldest Urban Coop. Bank in the State and it was established in the year 1906 and was registered under Co-operative Societies Act of India 1904. The bank was brought under the Banking Regulation Act by Reserve Bank of India on 4.12.1976. The present area of operation of the bank is comprised of Municipal Limits of Nakodar.

The Bank is functioning as a single branch bank and is housed in its own building which was purchased and renovated. The present membership of the bank has gone upto 7,000 with paid-up share capital of Rs. 141.84 Lacs.

Schemes For Loans and Advances

The bank advances loans to members for small scale business, shop-keepers, traders, un-employed youth, vehicles, house-hold goods and employees of Corporate Bodies and Government Departments.

The rate of interest charged is 16.5% and penal interest is 2% for the defaulting loans.  

Investments

Financial Position as on 31-3-2001 (Amount in Lacs)

Audit and Inspection

The bank is periodically inspected by Cooperative Department and Reserve Bank of India. The audit of the bank is conducted by the Audit Department of the Punjab Government.

The bank has been classified as 'A' Class Cooperative Bank for the year 99-2000 by the Chief Auditor, Cooperative Societies, Punjab, Chandigarh.  

Rate of Interest on various Deposits

Fixed Deposit

Recurring Deposit

Organisation Structure

The bank is a body corporate registered under Punjab Co-operative Societies, Act, 1961 and is governed by the Board of Directors elected by share holders according to Act, Rules and Bye-laws. At present, the term of the board is expired and the bank is presently managed by the Administrator. The election program is under process.

Future Plan

Sector-wise proposed target for the year 2001-2002 is detailed below :-

• Share Capital : The paid up share capital of the bank as on 31-3-2001 is 141.84 lacs. It is proposed to increase the paid-up share capital to Rs. 250-00 Lacs.

• New Branches : The bank proposes to increase its area of operation upto Nakodar Sub Division. The bank proposes to open its two new branches, one at Mehatpur and Shankar.

Deposits

The bank has set-up its target of deposit to Rs. 20.00 Crores during the financial year 2001-2002.

 Advances

The target of advances for the year 2001-2002 is fixed at Rs. 14.00 Crores.

Recovery

Since it is the oldest bank, the action will be taken to effect recovery from all the defaulters by taking legal action.

Human Resource Development

As you know the Human Resource Development is a new concept in the Urban Co-op. Banking so the management of the bank decided to take number of measures to upgrade and fine tuning the knowledge of it's officers and other subordinate staff which include training in various institutes i.e. Agriculture Co-op. Staff Training Institute, Jalandhar and Vai-Kunth Mehta Institute of Co-op. Management Pune.

 Introducing New Customer Care Service

Keeping in view the service to the customer, the bank got its building air-conditioned and is planning to computerise the branch very shortly.