MIRA INFORM REPORT

 

 

Report No. :

342062

Report Date :

28.09.2015

 

IDENTIFICATION DETAILS

 

Name :

THE MAHARASHTRA STATE COMPANY-OPERATIVE BANK LIMITED

 

 

Registered Office :

Plot No. 88, Sector No. 17, Vashi, Navi Mumbai – 4000703, Maharashtra

Tel. No.:

91-22-22876015/20

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

01.05.1961

 

 

Com. Reg. No.:

Not Divulged

 

 

Capital Investment / Paid-up Capital :

Rs.4567.300 Million

 

 

CIN No.:

[Company Identification No.]

Not Divulged

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is act as bank to providing banking services.

 

 

No. of Employees :

Not Divulged 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is the co-operative bank having satisfactory track.

 

It was originally registered as the Bombay Central Co-operative Bank Limited in 1911. Later with the passage of time, the Bank underwent few constitutional changes before it acquired the present status, viz. the subject name “The Maharashtra State Co-operative Bank Limited” on 1st May 1961.

 

Further, rating takes into consideration bank’s long track record of business operations supported by healthy reserves level and well spread banking network.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

In view of the aforesaid, the subject can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

INFORMATION DENIED BY

 

MANAGEMENT NON-CO-OPERATIVE (91-22-2287615)

 


 

LOCATIONS

 

Registered Office :

Plot No. 88, Sector No. 17, Vashi, Navi Mumbai – 4000703, Maharashtra, India

Tel. No.:

91-22-22876015 – 20/ 27892513

Fax No.:

91-22-22834416

E-Mail :

mscclg@gamil.com

Website :

http://www.mscbank.com

 

 

Head Office 1 :

9, Maharashtra Chamber of commerce lane, Fort, Mumbai – 40001, Maharashtra, India

Tel. No.:

91-22-22876015 – 20, 2880585, 22800532, 228005332, 22800541

Fax No.:

91-22-22834416

E-Mail :

mscclg@gmail.com

 

 

Head Office 2 :

120, Shahid Bhagat Singh Road, Fort, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-22876015 – 20

 

 

Branch 1 :

Plot No. 177, B. D. K. Sandu Marg, Chembur, Mumbai – 400071, Maharashtra, India

Tel. No.:

91-22-25282561

 

 

Branch 2:

Murlidhar Mandir Trust Building, Near Ram Mandir, Plot no. 202, Sion (East), Mumbai – 400022, Maharashtra, India

Tel. No.:

91-22-24073591

 

 

Service Centre 1:

Regional Office:

Nagpur Dr. Dhananjay Gadgil Road, Mahal, Nagpur – 440032, Maharashtra, India

Tel. No.:

91-712-561950, 2729096, 2729097,2726308, 2727346, (Ext.206, 328)

Fax No.:

91-712-2728663, 2737227

E-Mail :

 

 

 

Service Centre 2:

Regional Office:

Aurangabad - Branch Plot No. 10, Town Centre, CIDCO, Aurangabad - 431003, P. O. Box. No. 654, Maharashtra, India

Tel. No.:

91-240-2471464, 2485810, 2485221, 2482228, 2476068 (Ext.211, 212)

Fax No.:

91-240-485011, 2471464

E-Mail :

ro_abd@mscbank.combranchabd@gmail.com

 

 

Service Centre 3 :

Divisional Office:

Plot No. 3, Sector - E, Mumbai - Agra Road, CIDCO, P. O. Box. No. 81, Nasik – 422009, Maharashtra, India

Tel. No.:

91-253-2392852, 2392853, 2392854

Fax No.:

91-253-2392980

E-Mail :

ro_nasik@gmail.com

 

 

Service Centre 4 :

Pay Office:

Kolhapur Ayodhya Towers, 4th Floor, Dabholkar Corner, Shahupuri, Kolhapur, Maharashtra, India

Tel. No.:

91-231-2666792, 2666793, 2652762

Fax No.:

91-231- 2662708

E-Mail :

po_kolhapur@mscbank.com

 

 

Service Centre 5:

CTS center:

C/o. Solapur DCC Bank Ltd., Head Office, Ext.Building - 46, 1st  Floor, Yogeshvari Complex, Gold Flech peth, Solapur – 413001, Maharashtra, India

 

 

Administrative Office:

Plot No.88, Sector No.17, P.O. Box No.29, Vashi, Navi Mumbai  - 400703, Maharashtra, India

Tel. No.:

91-22- 27892340/27890329/27890470

Fax No.:

91-22-27894923/27895040/27890069

E-Mail :

mscbvashi@gmail.com

 

 

Regional Offices:

Also Located At:

 

  • Nasik
  • Pune

 

 

Pay Offices:

Also Located At:

 

  • Nanded

 

 

Divisional Office:

Also Located At:

 

  • Konkan (Vashi)
  • Kolhapur
  • Aurangabad
  • Pune
  • Nanded
  • Nagpur
  • Amravati

 

 

MANAGEMENT

 

Name :

Mr. Pramod Karnad

Designation :

Managing director

 

 

Name :

Mr. M.L. Sukhdeva

Designation :

Chairman

 

 

Name :

Mr. K.N. Tambe

Designation :

Member

 

 

Name :

Mr. A. A. Magdum

Designation :

Member

 

 

Name :

Mr. N. D. Patil

Designation :

General Manager

Department

K.Y.C., Banking, IBD, Estate and Maintenance, Project Apprisal and Marketing Department

Tel No.:

91-22-22833735

Email ID:

ndpatil@mscbank.com

 

 

Name :

Mr. R.J. Deshmukh

Designation :

General Manager

Department

AIC, DIR and R, HRDM, Treasury, ITD and Legal

Tel No.:

91-22-22836554

Email ID:

rjdeshmukh@mscbank.com

 

 

Name :

Dr. M. S. Suryawanshi

Designation :

General Manager

Department

CPID, CFA, Inspection and Audit, Internal Audit, Urban Cooperative Banks Department

Tel No.:

91-22-27890344

Email ID:

mssuryawanshi@mscbank.com

 

 

Name :

Dr. A.R. Deshmukh

Designation :

Dy. General Manager

Department

Banking & Legal and IBD

Tel No.:

91-22-22872403

Email ID:

ardeshmukh@mscbank.com

 

 

Name :

Mr. S.Y. Phatak

Designation :

Dy. General Manager

Department

Treasury,IT and Urban

Tel No.:

91-22-22835213

Email ID:

syphatak@mscbank.com

 

 

Name :

Mr. M.A. Bhavsar

Designation :

Dy. General Manager

Department

CFA, CPID, Inspection and Audit

Tel No.:

91-22-27890344

Email ID:

mabhavsar@mscbank.com

 

 

Name :

Mr. S. M. Shinde

Designation :

Dy. General Manager

Department

General Administration and DIR&R, and Vigilance Cell

Tel No.:

91-22-22028638

Email ID:

smshinde@mscbank.com

 

 

Name :

Mr. S.T. Wagh

Designation :

Dy. General Manage

Department

AIC,Project Appraisal,Internal Audit and Risk Management Department

Tel No.:

91- 22851957

Email ID:

stwagh@mscbank.com

 

 

Name :

Mr. R. L. Bayas

Designation :

Dy. General Manager

Department

Risk Management Department

Tel No.:

91-22- 22800650

Email ID:

rlbayas@mscbank.com

 

 

Name :

Mr. S.R. Patil

Designation :

Manager

Department

CFA, Vashi

Tel No.:

91-22-27890493

Email ID:

srpatil@mscbank.com

 

 

Name :

Mr. G.P. Deshmukh

Designation :

Manager

Department

Inspection and Audit and Addtional Charge- Urban Banks Departments

Tel No.:

91-22-27894926

Email ID:

gpdeshmukh@mscbank.com

 

 

Name :

Mr. P. M. Bhuktar

Designation :

Manager

Department

Regional Office, Pune

Tel No.:

91-22822217, 22851946

Email ID:

pmbhuktar@mscbank.com

 

 

Name :

Mr. S.B. Randaye

Designation :

Manager

Department

Banking

Tel No.:

91-22-22042485

Email ID:

sbrandaye@mscbank.com

 

 

Name :

S. C. Kedar

Designation :

Manager

Department

IT, Additional Charge of business development cell, Additional Charge of Risk Management, Head Office, Mumbai

Tel No.:

91-22-22046331

Email ID:

sckedar@mscbank.com

 

 

Name :

Mr. D. N. Dighe

Designation :

Manager

Department

Treasury dept and Additional Charge - IBD.

Tel No.:

91-22-22817274, 22817276

Email iD:

dndighe@mscbank.com

 

 

Name :

Mr.  P. S. Rajput

Designation :

Manager

Department

CPID Dept., Vashi

Tel No.:

91-22-27890490

Email ID

psrajput@mscbank.com

 

 

Name :

Mr. S.B. Kadam

Designation :

Manager

Department

Internal Audit

Tel No.:

91-22-25217534/ 25217582

Email ID

sbkadam@mscbank.com

 

 

Name :

Mr. A. G. Muddeshwar

Designation :

Manager

Department

Regional Office, Aurangabad

Tel No.:

91- 240 - 2485112

Email ID

agmuddeshwar@mscbank.com

 

 

Name :

Mr. B. S. Tondare

Designation :

Manager

Department

Legal Dept., Head Office, Mumbai

Tel No.:

91-22-22821412

Email ID

bstondare@mscbank.com

 

 

Name :

Mr. O. S. Thokare

Designation :

Manager

Department

HRD and M Dept., Head Office, Mumbai

Tel No.:

91-22-22042477

Email ID

osthokare@mscbank.com

 

 

Name :

Mrs. T. S. Korde

Designation :

Manager

Department

Regional Office, Nagpur

Tel No.:

91-712- 2723930/ 2774967

Email ID

tskorde@mscbank.com

 

 

Name :

Mr. R.W. Bakal

Designation :

Manager

Department

Regional Office, Nashik

Tel No.:

91-253- 2379589 2392980

 

 

Name :

Mr. S.T. Varpe

Designation :

Manager

Department

AIC Dept., Additional Charge of Project Apprisal and Marketing, Mumbai

Tel No.:

91-22-22822217

Email ID

stvarpe@mscbank.com

 

 

Name :

Mr. D.A. Jadhav

Designation :

Manager

Department

General Administration Department

Tel No.:

91-22-22845505

Email ID

dajadhav@mscbank.com

 

 

Name :

Mr. A.M. Bhuibhar

Designation :

Manager

Department

DIR&R, Head Office, Mumbai

Tel No.:

91-22-22822217

Email ID

ambhuibhar@mscbank.com

 

 

MAJOR SHAREHOLDERS

 

NOT DIVULGED

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is act as bank to providing banking services.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :

Banker Name

Not Divulged

Branch Address

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

 

Auditors :

Not Divulged

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates/Subsidiaries :

Not Divulged

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Share Capital: Rs.4567.300 Million

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

Sr. No.

Particulars

2010-11

2011-12

2012-13

2013-14

2014-15

1

Share Capital

4254.100

4446.500

4482.800

4529.800

4567.300

2

Reserves

38381.500

37524.500

31879.500

31161.800

31985.700

3

Owned Funds

42635.600

41971.000

36362.300

35691.600

36553.000

4

Deposits

174287.300

158623.900

154264.000

134748.300

99926.600

5

Borrowings

37093.700

39657.100

45944.200

62006.300

67172.000

6

Investment

119875.700

120403.300

107036.400

112109.200

74821.400

7

Loans and Advances

109889.600

102852.800

116045.500

107311.100

74821.400

8

Net Profit

(2519.100)

1753.900

3911.700

4005.100

4105.900

9

CRAR %

58.600

79.400

106.400

145.800

163.000

010

Gross NPA %

235.200

211.900

163.800

146.600

117.100

11

Net NPA %

42.700

17.800

13.800

13.000

06.000

12

Recovery % (as on 30th June)

734.800

840.000

891.200

909.200

920.500

13

Net Worth

4047.400

6024.700

10192.200

13924.900

17206.900

14

No. of Offices / Branches

560.000

560.000

560.000

530.000

480.000

15

No. of Employees

18420.000

17280.000

16230.000

15060.000

14050.000

16

Per Branch Business

5074.600

4669.200

4827.000

4567.200

4583.200

17

Per Employee Business

154.300

151.300

166.500

160.700

156.600

18

Working Capital

254441.000

242898.100

239232.200

236578.100

209471.000

 


 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

No

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

No

26

Turnover of firm for last three years

No

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

No

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 


 

HISTORY:

 

The co-operative movement in India traces its origin to a period as early as 1904, when the Co-operative Credit Societies Act was enacted. As far as co-operative sector is concerned, Maharashtra is the most developed state in the country. There is hardly any village in the state which remains untouched by the co-operative movement and hardly any important economic activity that is not covered under a co-operative fold. The co-operative movement in Maharashtra is nourished by a three-tier co-operative credit structure, at the helm of which is The Maharashtra State Co-operative Bank Limited (MSCB). At the middle level are 31 District Central Co-operative Banks (DCCBs) and at the bottom level, over 21269 Primary Agricultural Credit Societies (PACS) are functioning.

 

The MSC Bank serves as a balancing center for the surplus resources of co-operatives in the state and thereby ensures their multifaceted development and prosperity. Needless to say that MSC Bank is the biggest co-operative bank in the country. Besides, it is the only co-operative bank in India which has figured 9 times among the top 1000 banks in the world on the basis of financial soundness (Capital Adequacy) as surveyed by ‘The Banker’ published from London, periodically. The bank is listed in Schedule II of RBI Act 1934.

 

 

THE NETWORK OF THE CO-OPERATIVE CREDIT STRUCTURE IN MAHARASHTRA:

 

Sr. No.

The Maharashtra State Co-op. Bank

2013-14

Co-operative Credit Structure
(Maharashtra State)

2013-14

1

Head Office (Mumbai)

1

No. of DCC Banks

31

2

Administrative Office (Vashi)

1

No. of Branches of DCCBs

3711

3

Regional Offices

4

Total No. of PACS

21269

4

Pay Offices

2

Members of PACS

11141670

5

Divisional Offices

8

Borrower Members

4879198

6

Branches

43

No. of Urban Co-op. Banks

520

7

Extension Counters

3

No. of Branches of Urban Co-op. Banks

4426

8

CTS Service Centers

7

No. of Urban Co-op. Cr. Sty’s. (Mar 09)

26629

 

 

 

The twin objectives of MSCB is to promote and propagate the creation of a Co-operative Commonwealth through socio-economic transformation of the community by following co-operative principles by adopting democratic means. It means elimination of individual profit, distribution of surplus earnings according to the established law & regular practice and readiness to work for a common cause.

 

The business of this Bank shall be carried on and managed by elected Board of Directors. The maximum number of elected members of the Board shall not exceed twenty one. At least TWO directors on the Board of Directors of the Bank should meet the criteria of expert director mentioned in Bye-law 2(i). The Board meets as often as may be necessary, but at least once in two months and exercises overall control over the working of the Bank. From the Board of Directors, are constituted three sub-committees, viz. Loan Committee, Executive Committee and Staff Committee.

 

Loan Committee considers Loan proposals, requests for opening inland and foreign letters of credit, issuance of bank guarantees on behalf of co-operatives and other constituents.

 

Executive Committee considers issues like admission of members, allotment, transfer and redemption of shares of the Bank and other administrative and working operational matters.

Staff Committee decides matters exclusively related to staff, such as recruitment, appointments, promotions, training needs etc.

 

The first two committees meet alternatively once in a fortnight, while the staff committee is expected to meet quarterly. The General Body of Members meets once in a year. The day-to-day working of the Bank is supervised by the Managing Director with the help of senior colleagues.

 

Board of Administrators consisting of 2 members has been appointed by the State Government to carry on business of the Bank since 7th May 2011 in more professional way.

 

Over the years, MSCB has been fortunate in having the guidance of eminent personalities in different walks of life. To mention a few are successful businessmen like the late Mr. Lallubhai Samaldas, Mr. Vaikunthbhai Mehta, Mr. V. D. Thackersey and intellectuals like professor D. G. Karve, Dr. Dhananjayrao Gadgil and Mr. R. G. Saraiya who have helped the Bank to grow in stature and strength.

 

The Bank was originally registered as The Bombay Central Co- operative Bank Limited in 1911. However, it’s fore-runner The Bombay Urban Co- operative Credit Society was formed on 23-01-1906. With the passage of time, the Bank underwent a few constitutional changes before it acquired the present status, viz. The Maharashtra State Co-operative Bank Ltd. (Incorporating the Vidarbha Co-operative Bank Ltd.) on 1-5-1961 under the Registration No. 359 following the reorganization of states on the linguistic basis. It is interesting to note that as a result of constitutional changes, The Bombay Central Co-operative Bank Ltd. became known as The Bombay Provincial Co-operative Bank Ltd. in 1923, which from 1952 was recognized as The Bombay State Co-operative Bank Limited.

 

Initially, the Bank laid emphasis on the establishment of live contacts with villagers, which gave impetus to the opening of branches in the state. The Bank’s credit and marketing activities were combined in its rural branches. However, in due course the Bank encouraged the formation of separate marketing societies and transferred the business to them. With the evolution of three-tier co-operative credit structure (PACS, DCCBs, MSCB), the Bank transferred its credit business to the newly established Central Financing Agencies, i.e. Districts Central Co-operative Banks. This paved the way for linking credit with marketing in the co-operative domain.

 

To widen the scope of co-operative activities, the bank has helped substantially in promoting not only new co-operative ventures, but also extended technical guidance and managerial expertise to them. Indeed, the Bank has a lion’s share in promoting the first co-operative sugar factory in the country at Pravara Nagar in Ahmednagar district. To promote its activities on a greater scale, the Bank constituted within itself a separate cell, viz. Co-operative Industries Commission, by drawing experts from various universities, technical institutes, industrial houses and consultancy organizations. The bank thus gave fill up to the organization of co-operative and ancillary industries for the production of agricultural inputs such as fertilizers, agricultural machinery like oil engines, pump sets, tractors, etc. The bank also helped to set-up secondary and tertiary industries manufacturing paper, alcohol and lately ethanol based on the by-products of the agro processing industries. Today, the Bank is helping sugar factories in setting up the co-generation projects.

 

These agro based processing units are financially helped by MSCB & some of these units have promoted and/or helped the localities to start up the professional educational institutes viz. Medical Colleges, Engineering Colleges etc. and spread the education which was dream in semi-urban & rural vicinities.

 

But this is not surprising given the social commitment of the bank since its inception. Accordingly, the bank has constituted a Credit Stabilization Fund to ably meet natural calamities and at the same time created a Special Credit Stabilization Fund for strengthening Fishery, Agro Co-operatives. The funds are used to rehabilitate poor farmers through PACS and DCCBs.

 

Another feature of the working of MSCB is the introduction of the Crop Loan System. It was evolved by MSCB jointly with some District Central Co-operative Banks in the state. Following its success, the scheme evoked wide-spread interest and similar experiments were launched in other districts of the state. Ultimately, the scheme was adopted by the Reserve Bank of India for its implementation throughout the country. The Bank thus proved to be a pioneer of the time-tested Crop Loan System.

 

Apart from this, the Bank took innovative measures to provide facility for issuance of Demand Drafts by devising the Mutual Arrangement Scheme way back in 1931. This scheme for co-operative banks in the state inspired National Federation of State Co-operative Banks (NAFSCOB) to introduce a similar scheme for co-operative banks in the entire country from the sixties. Obviously, the Bank had a lion’s share in its formulation.

 

There are 31 DCC Banks in the State, out of which 30 Districts Central Co-operative Banks in the state which primarily cater to the financial needs of the agricultural sector. In this endeavor of the District Banks, MSCB plays a pivotal role by providing refinance. The Bank also extends its services to DCCBs and Urban Banks for investments of their funds in government securities by opening Constituent Subsidiary General Ledger (CSGL) accounts. Bank has sanctioned Import/ Export limits to PCB’s / DCCBs on behalf of their customers and helping to promote their forex business. While lending, emphasis is laid on financing Integrated Rural Development Schemes presently known as “Suvarna Jayanti Gram Swarojgar Yojana” to spur multifaceted development of shareholder PACS who are below poverty line, as well as financing schemes of national importance like Bio-Gas Development etc. Thus, waste resources are put to the best use and thereby pollution is minimised. Those district banks which are not eligible for loans under NABARD’s refinance facilities are also provided financial assistance by the Bank out of its own resources at the concessional rate of interest. Another salient feature of the financial assistance extended by MSCB is that although it caters mainly to the needs of the agricultural sector, it takes care of financial needs of the non-farm sector also by providing refinance facility to district banks under NABARD’s general refinance and composite loan schemes to enable them to help rural artisans and small scale industries.

 

To accelerate the region wise growth of co-operative sector, MSCB opened its Regional, Divisional and Pay Offices. It was felt that this step would take the Bank closer to its customer spread over the state and enables it to serve them better. These offices arrange finance to DCCBs and other Co-operative Institutions and at the same time act as supervisors, closely monitoring Bank’s loans and advances.

 

DEPARTMENTS AND FUNCTIONS:

 

1. Central Financing Agencies Department:

 

The Cooperative Movement in Maharashtra is nurse and nourished by Three Tier Cooperative Credit Structure, at the helm of which is the MSCB, at the middle level District Central Cooperative Banks and at the village level Primary Agricultural Cooperative Societies.

 

MSCB is an Apex institution of all District Central Cooperative Banks & Primary Agricultural Cooperative Societies in Maharashtra State. Central Financing Agencies Department of MSCB caters to the financing needs of District Central Cooperative Banks for providing Agricultural and Non-agricultural advances under various refinance schemes of NABARD. Funds are used to rehabilitate to poor farmers through Primary Agricultural Cooperative Societies and District Central Cooperative Banks. The loans are disbursed through the Regional Offices / Pay Offices of MSCB and utilisation and operations are reported to the department for control purpose. This department also liasions with NABARD for refinance purpose and with Government for required guarantee.

 

 

Figures At A Glance (31.03.2014)

 

 

 

Credit Facilities Provided And Activities Of Central Financing Agencies Department:

 

 

 

2. AGRO INDUSTRIAL CO-OPERATIVE DEPARTMENT:

 

AIC Dept. provides direct finance to co-operative processing units like Sugar Factories, Spinning Mills, Oil Mills, Marketing Co-operatives and other cooperative Industrial Units. AIC dept. processes credit requests from sugar and other processing societies, weavers’ societies, spinning mills besides other apex bodies like Marketing Federation, Maharashtra State Electricity Distribution Company, Food Corporation of India and Indian Farmers Fertilizers Co-operative Limited. etc.

Both Term Loan as well as working Capital loans are sanctioned. The term loans for period of 5 to 7 years are mainly provided for modernization of sugar units, spinning unit’s erection of cogeneration projects, distilleries, solar energy projects etc.

 

The working Capital limits are given to meet the day to day requirements of the production units. These loans are also disbursed through the Regional / Pay offices and utilization / operations are reported to the department for monitoring purposes. Wherever, required stock statements, inspection reports are prescribed and obtained for supervisory control purpose and ensure proper utilization of funds. Periodical review submitted to Hon’ble Board of Directors.

 

The department also takes care of the loan documentation including obtaining of third party guarantees and creation of charge on the immovable assets as per the terms and conditions of sanction.

 

 

Bank Is Extending Following Types Of Loans Based On Nature Of Industry:

 

1. Term Loan

 

2. Working Capital

 

 

A) RISK MANAGEMENT CELL:

 

a)     Banking Business is expanding so much in terms of volume and activities that it seems necessary to analyses and mitigate the various kinds of Risks (Credit, Operational, Market etc.,) involved in our Bank. Taking into consideration the said risks, our Bank has formed Risk Management Cell under Agro industrial Co-operative Department. NABARD had given separate guidelines on Risk Management through its circular dated 24.11.2012, on basis of which our Bank in its Hon’ble Administrative Board meeting dated 13.12.2012 decided to appoint agency to mitigate risks involved in our Banking Business. CRISIL was appointed as per decision taken in Hon’ble Administrative Board - Hon’ble Director Board meeting dated 25.3.2014.

 

b)    CRISIL will “Review and Design Risk Management Frame Work, Develop Risk Assessment Module (RAM) Software, Preparation of Process Manual & Standard Operating Procedures, Training and AMC for 5 years”.

 

Area to be covered by CRISIL

 

  1. 1.Credit Risk
  2. Market Risk
  3. Operational Risk Framework
  4. Compliance Risk etc.

 

The Chief Risk Officer is appointed as a Head of the cell.

 

B) PROJECT APPRAISAL AND MARKETING DEPARTMENT

 

On account of limitations on extending advances to existing activities and need to diversify the loan portfolio there was a felt need to develop new products and borrowers. To address this, Bank formed the Project Appraisal and Marketing Department. The department will appraise projects received from institutions outside the co-operative fold such as educational institutions, industrial units etc. and facilitate diversification of loan port-folio

 

 

3. Urban Co-Operative Banks Department:

 

The department’s work relates to financing of the Urban Cooperative Banks. The Refinance is sanctioned to UCBs against their advances to the members for hypothecation / pledge of goods and / gold ornaments. In case of finance provided under the special schemes of NHB, RBI, SIDBI, refinance is availed from the respective agencies.

 

The various types of facilities provided to the UCBs are as under.

 

 

Urban Banks department is playing very significant role by guiding UCBs on various issues in day to day working. From the year 2008-09 bank has started system to discuss financial position, fund requirement, collateral etc., with office bearers and officers of Urban Banks before sanctioning loans to them. This department consolidates the statistical information of the UCBs in the state and circulates it among member UCBs.

 

 

4. Human Resource Development And Management Department

 

Against the backdrop of the stiff competition in the banking sector, the management of MSCB felt the need to develop professional outlook of the employees towards work and thereby prepare them for the challenges of the future. As a result, a comprehensive ‘Human Resource Development and Management Policy’ was put in place, on November 2009.

All the working of the HRDM is going on as per policy. But time to time it has to make some necessary changes, considering the needs of the bank with approval of Hon. Board of Administrators. It takes care of Transfer/Promotion/Training needs of employees.

 

Preparation of Staffing Pattern for the period 2014-2019, consisting Study Work Load, Staff Strength, Evaluation of Training Requirements of the staff and Redesign the Organizational Structure, Grade Wise Job description and Responsibilities and suggesting changes in H.R. Application Software job is in under process by appointing outside agency.

 

5. Banking Department

 

A] Clearing:

 

Responding promptly and effectively to the call of R.B.I. our Bank implemented C.T.S.facility for own and also for Sub Member Banks at Mumbai, Nagpur, Aurangabad, Nasik, Pune, Kolhapur and Solapur. As on date we handle 20 to 25 thousand cheque per day. Our Hon’ble Administrative Board were concern enough to offer such facility to Cooperative Bank spreaded all over the state that to at least possible charges.

 

B] Rtgs-Neft:

 

After offering said service through off line to all Cooperative Institution, we are in process to offer same online by providing ‘Portal’ at all such Cooperative Institution location in nearest future. Complementing the present process, with sixteen digits Account No. Total Inward will be automatic and Portals will make Account operation is self for client.

 

C] Retail Banking:

 

In view to cater the financial needs of Individuals, Bank ventured in Retail Banking a decade before, Major scheme are Individual Loans to salaried and self-employed population for vehicle, consumer and Housing Loan etc. Bank recently launched Gold Loan Scheme, Mortgage Loan to Individuals & Firms for enhancement of existing business was introduced recently.

 

D] A.T.M.:

 

The Bank has acquired membership of National Financial Switch (NFS) from NPCI to provide ATM services and has installed 2 ATMs (Head Office and Vashi).

 

6. Treasury Department

 

a] Mandatory Function 

 

Maintenance of minimum Cash Reserve Ratio (CRR) u/s 42 of Reserve Bank of India Act, 1934 & Statutory Liquidity Ratio (SLR) u/s 24 of Banking Regulation Act.1949 are prime responsibilities of Treasury Department

 

b] Money Market Operations:

 

The department monitors daily inflow-outflow of funds through current account with RBI and manage liquidity function of the Bank. Funds required are raised through CBLO/ Repo surplus if any are invested in CBLO/ Call/ Repo/Inter Bank deposits to earn income.

 

c] Dealing in Government Securities and Foreign Currencies:

 

In line with maintaining adequate SLR, department trades in Government Securities, on NDS OM for exploring profit making opportunities. Total investment portfolio stood to INR 10944.13 Cr. as on March 2014 of which INR 5498.78 cr. invested in government Securities.

 

Forex desk deals in major foreign currencies to support merchant business & in turn takes benefit of price fluctuations in the currencies to earn profit.

d] Servicing GAHs:

 

The Bank has 368 GILT Account Holders. Gilt Securities held on behalf of these constituents is INR 18,322.32 cr. as on 31st March 2014.

 

7. Inspection and Audit Dept.

 

Inspection and Audit Dept. plays the supervisory role over the borrowing units through the divisional offices by way of inspection and various visits. The observations on the inspection reports are communicated to concerned units. The Compliance on the same are obtained timely to exercise control over borrowing units. The Department also exercises control on field Staff of the Divisional Offices of the Bank by way of scheduled Inspection program. This facilitates effective check and Control over all borrowing units, utilization of funds & recovery of loans of the bank and immediate rectification of observations thereof. Compliance reports on Statutory Audit Report, internal audit memos and Statutory Inspection Report (NABARD), are also placed before the Audit sub-committee and BoA-(BoD) for approval and are forwarded to the concerned.

 

8. Internal Audit Dept.

 

This department undertakes the audit on quarterly basis of all branches, Regional Offices, Pay Offices and Divisional Offices. A separate arrangement is made for the internal audit for Nagpur Regional / Divisional Office and Branches under it. However, test audit of Nagpur RO and its affiliated offices / units are undertaken yearly by the internal Audit Dept.

 

The audit of income and expenditure, drawls and balance sheet and its statements is the prime and main work of this department. The pre-audit of major items of expenditure, provident fund, gratuity, and income tax, TA / DA etc. is carried out on priority basis.

 

9. International Banking Division

 

With the passage of time and to be in tune with the rapidly changing economic scenario, it was felt that the co-operative sector should not lag behind in foreign exchange business. To meet this requirement, the bank obtained the “Authorised Dealer’s license” from Reserve Bank of India, for undertaking foreign exchange business. The International Banking Division (IBD) of the Bank thus commenced foreign exchange business on 28th May, 1990.

The International Banking Division in accordance with RBI, FEMA, FEDAI directives. Offers following products to its various constituents and its constant endeavor shall be to provide them better and faster services.

Preshipment / Postshipment Credit

Establishment of foreign letter of credit, payment of bills received on collection basis, advance remittance

Purchase and sale of foreign currency notes

Receive foreign inward remittances and also effect outward remittances. i.e. Education Free, Medical Treatment Abroad, Travelling, Maintenance of Family residing abroad, under Liberalised remittance scheme, etc.

External Commercial Borrowings (Buyers/ Suppliers credit)

Foreign cheques collection from customers for credit to their accounts

Issuance of Demand Drafts in various foreign currencies

Issuance of Bank Guarantee on behalf of exporters

Opening of Non Resident Accounts-Non- Resident (Ordinary) Account, Non-Resident (External) Rupee Account, Foreign Currency Non-Resident Account (FCNR), Resident Foreign Currency Account, Resident Foreign Currency (Domestic) Account

Opening of Exchange Earners’ Foreign Currency Account (EEFC)

During the year 2003-04 the Bank installed “SWIFT’ system, to enable quick and safe communication with overseas banks, thereby providing speedy and better services to customers. It put the MSCB in line with commercial and foreign banks. We are maintaining our Nostro Accounts in 4 major currencies abroad i.e. USD,GBP, EURO and JPY.

So far, Bank has Relationship Management Application (RMA) with 41 different banks situated abroad.


 

10. Information Technology Department

 

Our Bank has implemented and operationalized CBS, since March 2011 successfully. The Bank has acquired membership of National Financial Switch (NFS) from NPCI to provided services of ATM and has installed 2 ATMs (Head Office and Vashi). The services are operational since March 2014. NGRTGS facility will be made available to DCC Banks which have implemented CBS. CTS has been implemented at Mumbai, Nagpur, Aurangabad, Nasik, Pune, Kolhapur and Solapur. Bank has well formulated and Board approved I.T. Policy in existence.

 

 

11. Corporate Planning and Institutional Development Department

 

Corporate Planning and Institutional Development (CPID) Department was formed in Oct 2007 with a view to suggesting measure to transform the Bank into a vibrant and strong institution that would lead its client institutions in the process of economic activities, to achieve socio-economic development through co-operative process.

This department has two sub-sections

 

  1. Management Information System (MIS)
  2. Policy Section

 

The Management Information System (MIS)

 

Functions related to preparation of financial statements, Banks Balance Sheet and Annual report and submission of all statutory returns to RBI/NABARD, Execution of Transfer Price Mechanism and has also prepared Business Plan for the period from 2012 to 2017. Our Tax sub-section looks after Income-Tax assessment and Payment of the Bank, Branches and all tax related matters.

 

 

Policy Section

 

Carry out policy related functions viz. defining mission of the Bank, policy formulation, and preparation of schemes for business and support services, suggest innovations in systems and do in-depth analyses of problems through research. Further the functions related to data analysis and interpretation. This section prepares Annual Budget for revenue and capital expenditure for various section of the bank.

 

This department is taking constant review of interest rate on Deposits and Loans and Advances in light of RBI Policy and market situation. This has given positive impact on banks financial strength. This dept. has also undertaken ALM related analysis which helps to take the decision at management level. Alco Committee has been formed to review Assets and Liability of the Bank. Alco Committee meeting is conducted in every month.

Following Policies / Schemes have been formulated by this Dept.

 

 

12. Department for Institutional Recovery and Revival

 

With a view to concentrating on effective recovery of the Bank’s credit to borrowing institutions and for possible revival of the eligible units the earlier Recovery Cell of AIC Department was converted in to a new and full-fledged Department of Institutional Recovery and Revival. It carries out the work of assessment of NPA and provisioning (Initiate legal proceedings for recovery of overdue etc.)

 

Department looks after the recovery of NPAs; Through SROS (Special Recovery Officers under MCS Act) and AOs (Authorising Officers under ‘Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002’).

 

Handles legal proceedings of recovery, attachment and sale of NPA units.

To facilitate recoveries from distressed accounts bank has formulated “Compromise Settlement Scheme 2012” with consent of Special General Body Meeting held on 08.12.2012. It has got good response and as on 31.03.2014 INR 111.95 Crore were received under this scheme.

 

13. Legal Department

 

The Legal Department is basically working as a Co-ordinator between different offices, departments, branches etc. of the bank; as well as Advocates and various Courts, Empanelment of Advocates Review and monitoring of their working and legal cases etc. is controlled through this Department.

 

Further, Legal Department provides legal opinions from Advocates/Solicitors, considering the need and requirements of the bank.

 

14. Training facilities - Shikhar Training and Research Institute

 

Shikhar Training and Research Institute was started by our Bank on 16-12-2009 as a part of its role to provide need based training in another banking practice to the Co-op. Credit Structure in the State. The Institute, therefore, is working as State Level Agriculture and Cooperative Staff Training Institute (ACSTI) under SOFTCOB – Scheme of Financial Assistance for Training of Coop. Banks introduced in Bank’s own premises. ‘Shikhar’ Vashi imparts training of General Banking and Computer.

 

Our Nagpur’s Staff Training Center was taken under the arm of Shikhar Training & Research Institute, Vashi and called as ‘Shikhar Training and Research Institute, Nagpur Center’ which imparts training to STCCS of Vidarbha region in General Banking.

Looking to the increasing use of Information Technology in Banking, our bank has set up a Computer Lab at Vashi Center in which full-fledged Computer Training is being conducted. A part from this ‘Shikhar’ conducts training programs for DCCBs at their locations.

 

During the 2013-14, both the Vashi and Nagpur Channels together had conducted 61 Training Programs, covering 1088 Officers /Staff.

 

The two Knowledge Management Centers at Vashi and Nagpur are serving the needs of ‘SHIKHAR’. At present, these have 8874 books and 55 periodicals available for references and study.

 

The STRI has its own library which have various books, periodicals and magazines. At present it has got more than 700 books related to Banking and Cooperatives. Besides this, the participants are provided newspaper on daily basis during training period. It has also got a Television Set installed to provide latest updates to the participants. Air–conditioned Hostel facilities for 29 trainees at a time, have also been provided.

 

The classroom at STRI is well equipped with a computer and projector installed for conducting training sessions with the help of Audio Visual Media. It has also got an Internet Connection. The classroom got the capacity of accommodating 30 to 35 participants.

 

15. Functions of R.Os, P.Os and D.Os

 

With a view to facilitating disbursement of loans to District Central Co-operative Banks, Urban Co-operative. Banks. Co-operative sugar factories, Co-operative spinning mills and other co-operatives in the State and to exercise effective control and supervision over loan account operations, the bank has been functioning through its 4 Regional Offices, 2 Pay Offices and 8 Divisional Offices. The Bank has 28 Branches in Mumbai, 1 in Navi Mumbai, 11 in Nagpur and 1 each at Aurangabad, Akola and Amravati.

 

Our bank has set-up 8 Divisional Offices which have a supervisory role over the borrowing units in the respective territory / region. They are basically controlling machinery for inspection and effective loan recovery, which are located at Pune, Kolhapur, Nasik, Vashi, Aurangabad, Nanded, Nagpur and Amravati. The inspection program is prepared by them on half-yearly basis and sent for approval to HO. After HO approval, the monthly tour programs of the inspection machinery is prepared and executed. The inspection reports of the Divisional Officer and Inspecting Officers are sent to the inspection and Audit Department at Vashi where the scrutiny is done and the observations are communicated to the concerned units. Based on these observations, Bank takes corrective measures for recovery of loans. Loan Proposals are also scrutinised at Divisional Office level

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 

Unit

Indian Rupees

US Dollar

1

Rs.66..10

UK Pound

1

Rs.100.89

Euro

1

Rs.73.96

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

HEE

 

 

Report Prepared by :

GTA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.