Sikkim: SISCO net profit boosts but fall in deposit rates

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Gangtok: November 16, 2011

The 12th Annual General Body Meeting of Sikkim State Co-operative Bank (SISCO) limited was held on November, 15, 2011 to discuss and review the financial position of the bank for the financial year 2010-11 at Denzong Regency here in the capital.

The meeting of the bank was graced by RBI, AGM, Anil Yadav, NABARD General Manager PC Choudhary and Board of Directors amongst a good strength of shareholders.While reviewing the financial position of SISCO bank for the financial year 2010-11, General Manager SISCO, R K Goyal submitted that as compared to the previous financial years, the current year has witnessed a drop in the deposits, though the net profit has been increased comparatively. The drop in the deposits has been from Rs. 19414.47 Lakhs in 2009-10 to Rs.14731.10 Lakhs in 2010-11 added the GM SISCO. He further added that Reserve Bank of India and NABARD together are working to make SISCO a profitable bank.

Adding more addressing the shareholders and the employees he urged that the profit is dependent on the recovery of loans and not on how much loan has been rendered and further stated that the legal framework for progress of a bank is a must.

Chairman SISCO, LM Lepcha, in his address extended gratitude towards the State Government for all the cooperation and support in making SISCO a success bank so far. Adding further he stated that its time to raise the level of the bank living standards of poor and the farmers by providing them with accessible and low
interest loans. The power point presentation on the annual report as on 31st March 2011 displayed the net profit achieved by the bank. Showing a positive progress the net profit revealed that there has been a growth of Rs 228.25 Lakh as compared to Rs 154.83 Lakh of the financial year 2009-10. Like wise it was also submitted that currently the bank is working by borrowing money from NABARD.

Deposit rates have dropped comparatively it was apprised which has led to a negative growth rate displaying the figures to be -24.12% as compared to 123.90% in 2009-10. Despite the drop in deposits, bank has shown considerable rise in growth rate in loans and advances from 28.58% in 2009-10 to 64.41% in 2010-11.
Graph presented exhibited a constant progress and outstanding growth in loans.

SISCO to its credit has opened two new branches at Pakyong and Soreng. Opening of branches in six other places is already in the pipeline for the year 2011-12, it was informed and to begin with branches at Rabongla and Rongli are already established. While in the financial year 2011-12, SISCO holds the plan of opening new more branches at Hee-Gaon, Yangyang, Sombaria and Ranipool. Displaying the progress and financial standing of SISCO, it was also told that opening of branches at other places will only add to the growth of profit. The presentation also displayed that there was a considerable growth in recovery against demand of over 67.43% as compared to last year. Citing the Baidyanath Committee’s guidelines, it was also stressed that working for the grass roots level an 80% increase in growth can be expected along with the net profit of Rs. 228.25 Lakh an increase in NPA was also observed in the financial year 2010-11.

The day long meeting had many factor to be discussed in their agenda like the approval of balance sheet and auditors report of the bank, sanction appropriation of profit, seek approval of the capital budget for the year 2011-12, approval of business budget for the year 2011-12, approve income and expenditure budget for 2011-12, resolve for amendment in section 26 of SSC Act 1978, resolve for amendment in bye laws of the bank and consider accountant general (Audit) comments on the accounts of the bank. During the program awards to three best performing MPCS were also handed out.

Sikkim Mail



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