About Bank

Visakhapatnam District is one of the biggest Districts in the State of Andhra Pradesh. The boundaries of the District are North-Vizianagaram District, South-East Godavari-West –East Godavari, Koraput District of Orissa and East, Bay of Bengal.

CONSTITUTION

Consequent on the trifurcation of the erstwhile composite Co-Operative Central Bank Ltd., Vizianagaram, the District Co-Operative Central Bank Ltd., Visakhapatnam was registered with head quarters at Visakhapatnam on 09.11.1981 and commenced its operations with effect from 13.11.1981.

The area of operation of the Bank extends to the entire district of Visakhapatnam

After implementation of Single Window Credit Delivery System in the State of Andhra Pradesh from 1st April, 1987 all the credit requirements of Agriculturists such as Short-Term, Medium Term, Long-Term Loans and other services, non-credit requirements, such as supply of fertilizers, seeds, pesticides, essential commodities are being met at one Single contact point i.e. PACS. Our Bank is providing credit facilities to the farmers through Primary Agricultural Co-Operative Societies and   banking service to the customers in the District.

DISTRICT PROFILE

Visakhapatnam District is one of the biggest Districts in the State of Andhra Pradesh. The boundaries of the District are North-Vizianagaram District, South-East Godavari-West –East Godavari, Koraput District of Orissa and East, Bay of Bengal.

Water Sources:-

1. Mainly rain fed
2. 2. Medium Irrigation Projects: 4
   1. Thandava Reservoir
   2. Konam Reservoir
   3. Kalyanapulova.
   4. Raivada.

No. of Rivers : 5

Sharada, Varaha,Thandava,Megadhrigedda

Gambheeram.(Rivulet)

No of Co-Operative Sugar Factories : 4

1) Anakapalli

2) Etikoppaka

3) Thandava

4) Chodavaram

Main Crops grown:

Paddy, Sugarcane, Vegetables, Chilies, Groundnut & Banana

Location of the Bank

The Bank is located in its own building at D No – 58-14-57/1, NH-5 Road, Vuda Layout, Marripalem, Visakhapatnam.

Branches:-

The Bank is operating through its network of 28 Branches.  They are

Details of Affiliated societies:

FINANCIAL PARTICULARS

The financial progress of the Bank for the last 6 years is furnished hereunder

DEPOSITS

The comparative Deposit position for the Last 5 years is furnished hereunder

Rs. (in lakhs)

COMPARATIVE POSITION OF DEPOSITS

(Rs. in lakhs)

As per the above, the individual deposits are increasing due to the fact that more than 50% of the branches are situated in the Urban area mainly  in Visakhapatnam city and there is much scope for further improvement, provided the Branches are equipped with all amenities and  adequate staff.

DISBURSEMENT OF CROP LOANS FOR THE LAST 5 YEARS:

(Rs. in lakhs)

SECTOR WISE DISBURSEMENTS UNDER LONG TERM (LOAN)

(Rs. in lakhs)

GOVERNMENT SPONSORED SCHEMES

The Bank has given much thrust for providing credit for Government sponsored schemes i.e. linkages to Self Help Groups, RythuMithra, RajeevaYuva Shakti, Village Khadi Industries, etc., in the District through our Branches. The progress made is furnished hereunder

(Rs.in Lakhs)

RECOVERY POSITION

The recovery performance of the Bank for the last 5 years is furnished here under

The AP State Co-Operative Bank is directly financing the following 4 Co-Operative Sugar Factories in the district from the year 2004-05

1. Govada Co-Operative Sugars, Chodavaram

2. Anakapalli Co-Operative Sugars, Thummapala

3. Etikoppaka Co-Operative Sugars, Darlapaudi

4. Thandava Co-Operative Sugars,   Payakaraopeta

The Bank used to issue Cash Credit / Loans towards pledge and hypothecation limits from the inception of the above Institutions

The Bank has deprived of the lending facility to the extent of Rs. 100.00 Crores to Co-Operative Sugar Factories as the government guarantee has been issued in favour of APCOB and the Bank is not allowed to finance sugar factories exceeding 40% of the ILR as per the RBI / NABARD guidelines of exposure norms.  Therefore, the AP State Co-Operative Bank has advised our Bank to invest their surplus funds under consortium arrangements with APCOB under Sugar Finance. According to the above arrangement the Bank had invested Rs. 1275.00 lakhs with APCOB.

WEAVERS FINANCE

There are 20 Weavers Co-Operative Societies in the area of operation of the Bank. The Bank had sanctioned cash credit limits to 19 societies during the year 2004.  Majority of weavers Co-Operative Societies are defunct and cash credit limits were unrenewed and became over due. The entire outstanding of Rs 285.90 lakhs became NPA.  There is norecovery since the societies are not functioning properly.

AGRICULTURAL FINANCE

The Visakhapatnam District is mainly agro based and 80% of people depend upon Agriculture and there are as many as 4,77,449 cultivators in the District and most of them are small and marginal farmers and tenants with small land holdings. They borrow loans from financial Institutions and other agencies.  Our Bank is financing nearly Rs, 180.00 Crores    under crop loans to 1,85,000 farmers in the District.

The agricultural land is being converted in to house sites and thousands of acres are being acquired by the Government for the SEZs & Industries such as Aluminum plant, Pharma City, Textile Park, Indira Gruhakalpha, Rajeev Swagruha, Software Companies and it is due to the rapid urbanization, the agriculture is being affected severely.  Under these circumstances, the main thrust of the Bank on agricultural business needs diversion to some other areas. The Rural Branches like Madhurawada, Pendurthi&Gopalapatnam were converted in to Urban Branches. In this back ground, the Bank should invariably concentrate on Non Agricultural loan business like Gold Loans, improvement of the banking operations like lockers, non-fund business, personal loans to employees, housing loans etc.,

GOLD LOANS

The Bank is advancing gold loans to the customers for Non-Agricultural and Agricultural purpose of the Bank.  The progress made under this portfolio for the last 4 years is furnished hereunder:

(Rs.in Lakhs)

In order to improve the gold loan business, we have provided all the required facilities and adopted competitive rate of interest

FINANCIAL ASSISTANCE UNDER REVIVAL PACKAGE FOR CO-OPERATIVE STRUCTURE AS PER VYDYNADHANCOMMITTEE REPORT

There are 111 PACS in the District as on 31.3.2004 and they are classified as follows:

13 non-viable PACS were merged with other societies and as a result the societies number is 98 as on date.

NON-CREDIT BUSINESS BY THE PACS

The Bank has been encouraging the PACS for under taking fertilizers, pesticides and non-credit business.  Further, nearly 40 PACS have expressed willingness to take up fertilizer business through Mark fed. The Bank has been extending bank guarantee to PACS to take up Fertilizer business.

AUDIT:

The final audit for the year 2010-11 was completed and the Audit Report was issued by M/s G Sita Rama Rao& Co., Eluru on 30.05.2011 as per the stipulations of RBI / NABARD.  The Bank has earned a Net Profit of Rs.52.46 lakhs.  The NPA has been decreased to 13.77 as on 31.03.2011.  The Bank has been categorized as “B” Class Bank with a positive Net Worth for the year 2010-11.