We greet our all valued shareholder. Your bank is possessing track record of reflow dividend payment since inception of the bank.
Depending upon the environmental changes in India, there are changes in the Banking Sectors also. The entry of the private banks is in the increasing trend. Due to stiff competition in the field, between the private banks and public sector banks, there is an important role in the interest rates both on deposits and advances. Further the Information Technology is playing vital role in the banking industry to motivate for the updated versions in the Banking Sector. Amidst such situations, Central Government has withdrawn the benefits available so far to the Co-operative Banks under Section 80P of the Income-tax Act. As such the banks in the Co-operative Sector are compelled to segregate some portions of their profit for the payment of tax. It has a blow to the Co-operative Banks, which vitally affecting the distribution of the profit into the Reserves. Further most of the service oriented activities are coming under the purview of Service Tax dragnet. In the meanwhile Reserve Bank of India has given permission for the opening of our Branch at Branch at Mota Varachha will be open in next month..
Share Capital and Dividends
While there were 18837 share holders with the share capital of Rs. 7.90 crores as at the end of March 2012, it has been increased to 21891 with the share capital of Rs.9.11 crores as at the end of March 2013. For the Current financial year, the profit before taxation is Rs.7.55 crores. After the provision for Tax for Rs.2.25 crores/-, the net profit will be Rs.5.30 crores. Based upon the profit earned by the Bank, the Board of Directors have recommended for the declaration of 15% dividend for the financial year ended 31.03.2013.
Statutory and Other Reserves
At the end of 18 years of existence, Reserve funds are accumulated to Rs.66.25 crores as on 31 March 2013 in addition to the share capital of Rs.9.11 crores. As such the Bank’s share capital and reserves comes around 75.33 crores and this healthy and sound position is due to the confidence reposed upon by the shareholders and customers. After making provision according to the guidelines under G.C.S. Act, 15% of the net profit will be provided towards Urban Banks’ Credit Equalisation Fund.
Distribution of gifts to the wards of the Shareholders and Accident Insurance Cover to the shareholders and accountholders
It has been decided to give free gifts pertaining to the studying activities to the wards of the share holders and the meritorious students will be given with special momento and a Certificate of honour. Further there are ranges of insurance cover to the account-holders and shareholders between Rs.50000/- to Rs.3 lacs and the Bank has claimed and distributed a sum of Rs.2.70 crores to 191 claimants.
Audit Class and Insurance Cover for depositor
The Bank’s activities are being under the preview of Statutory Audit by J. J. Bhavsar for the Financial Year 2012-13 as per the instructions from RCS, Government of Gujarat, at Gandhinagar and the Audit Class given by the Auditors is ‘A’.
The Bank pays regularly insurance pemium to Deposit Insurance & Credit Guarantee Corporation of India. As such the Deposits upto Rs. 1 Lac are being covered with insurance.