best practices in management and corporate governance …
TRANSCRIPT
BEST PRACTICES IN MANAGEMENT AND
CORPORATE GOVERNANCE
IN
TELANGANA STATE COOPERATIVE APEX
BANK LTD.,
- Dr.Nethi Muralidhar,
MANAGING DIRECTOR
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Formation of TSCAB:
1925 - Hyderabad Cooperative Dominion Bank.
July 1963 - Hyderabad Cooperative Dominion Bank and
Andhra State Cooperative Bank were merged
and formed into A.P. State Cooperative Bank.
1994 - APCCADB merged with APCOB under
Single window Credit Delivery System.
2nd April 2015 - APCOB Bifurcated into TSCAB and Residual
APCOB.
TSCAB is registered under State Cooperative Societies Act on
26.03.2015 and commenced its business from 2nd April, 2015 onwards.
RBI granted licence to TSCAB on 18th April 2016.
Scheduled status granted by RBI on 29th March 2017.
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To be the “Best State Co-operative Bank” in the
country, providing effective leadership, guidance,
training and refinance support to the Co-operative
Credit Structure (CCS) for sustainable growth and all
round development of CCS and also the State of
Telangana.
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VISION:
FINANCIAL PARTICULARS of TSCAB(Rs. in Crores)
Sl
No
Particulars Position
as on
02.04.2015
Position
as on
31.03.16
Position
as on
31.03.17
Latest as on
30-11-17
1 Paid-up Share Capital 101.98 109.27 120.48 124.08
2 Reserves & Surplus 454.04 417.50 432.47 470.58
3 Owned Funds (1+2) 556.02 526.77 552.95 594.66
4 Deposits 2871.57 3252.41 3424.38 3639.27
5 Borrowings 2909.10 3055.37 3202.04 3128.16
6 Investments including Call &
Short Term deposits
3006. 05 2865.34 2813.50 2889.65
7 Loans & Advances 3435.43 4080.28 4457.90 4549.14
8 Gross NPAs % 6.18% 0.39% 0.36% ---
9 Gross Profit --- 27.81 59.07 47.03
10 Business Turnover 6307.00 7332.69 7882.28 8188.41
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NETWORK OF CCS IN TELANGANA
APEX LEVEL
[TSCAB]
DISTRICT LEVEL
[9-DCCBs]
VILLAGE LEVEL [PACS]
41
BRANCHES
323
BRANCHES
798 PACS
36.72 Lakhs
Membership
12.50 lakh
Borrowing
members
5
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COMPOSITION OF BOARD
• All the Presidents of DCCBs are members on the Board . They elect
President and Vice President.
• Co-opted Professional Directors - 2
• CC & RCS
• CGM of NABARD RO-Special Invitee
• MD/CEO of the Bank - Ex officio member.
Size - 09 Elected Members + 05 Others = 14members.
• Term – Five years
• Periodicity of the Board Meetings – At least once in a quarter.
Year wise details of the Board Meetings conducted.
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Year No. of Meetings % of Avg.
Attendance
2015-16 11 94
2016-17 11 96
2017-18 (up to 15-12-2017) 5 84
Presidents of 9 DCCBs
CC&RCS as State Govt. Nominee.
Periodicity : At least Two meetings per Annum.
Year wise details of the General Body Meetings conducted
Year No. of Meetings % of Avg.
Attendance
2015-16 4 95
2016-17 3 90
2017-18 (as on 15.12.2017) 1 90
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GENERAL BODY MEETINGS:
Functioning of Board of Management:
o Greater freedom to the SCB and DCCBs in the business matters.
o Minimum intervention of State Government in Financial and Internal
Administrative Matters.
o All the members of the Board are aware of the Role and Responsibilities of
the Board of Directors. (Communicated by the NABARD vide circular
dated: 21.09.2010)
o Agenda/Reviews being placed before the Board of Directors of SCB
regularly as per the guide lines of the NABARD.
o Role of Board of Directors is primarily limited to the formulation of policies
keeping in view the guidelines issued by RBI/NABARD and State/Central
Government.
o The Board is exercising overall supervision and control over the
functioning of the Bank, leaving the day to day Administration to the CEO
of the Bank.
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All the members of the BOM are fulfilling the F&PC and
furnished declarations/information in compliance to the F&PC.
Co-opted 2 Professional Directors on the Board are as per
F&PC.
The CEO/MD of the Bank was selected and appointed as per
F&PC by following the due procedure.
HLC under the chairmanship of the Chief Secretary, has
resolved that the Board feels if there is a case for replacement
of CEO, such replacement should be made only with the prior
approval of HLC, on recommendation by Govt. and NABARD.
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Fit and Proper Criteria (F&PC):
SUB COMMITTEES :
Board Sub Committees Sub Committees of
officers
HLC Sub
Committees
Audit Committee
Special Committee on
Monitoring and Review of
Big Frauds of Rs.10.00
lakhs and above.
Risk Management
Committee
Committee on Fit &
Proper Criteria for
Directors
Committee for
Compromise/One Time
Settlement of Loans
Credit Policy Committee
Asset-Liability
Committee (ALCO)
Investment Committee
Training Committee
Infrastructure
Committee
Technology Committee
Committee on Retail
Loans
Grievance Redressal
Committee
SOG
CEO selection,
Scrutiny Committee
Sub Committee to
sanction permission
for opening DCCB
Branches
Review of Weak
DCCBs.
Co-option of
Professional
Directors in CCBs.
Reappointment of
retired Officers
(DGM & above
cadre)
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Important policies approved by
the Board
Loan policies
Investment policy
Risk Management policy
IT security policy
Vigilance policy
HR policies
Training policy
Career progression/promotion policy
Staff Service Regulations
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Important Milestones achieved by TSCAB
Government of Telangana has extended guarantee for Rs.2500
Crores to NABARD for Two years before attaining Scheduled status.
Initiated special drive for reduction of NPA from 5.94% (as on
01.04.2015) to 0.36% (as on 31.03.2017).
Established 100KW roof top solar power plant in Head Office.
Under Project Young Champions TSCAB stood first among the
SCBs in the country in opening of accounts and TSCAB & DCCBs as
a whole stood first among the cooperative Banks in opening of
accounts.
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Doubling of Profit during the year 2016-17.
Special Focus on investment credit through the DCCBs – LT Loan O/s
increased by 195% in last 2 ½ Years. Share in total loans increased
from 18.70% to 27.34%.
Taken up PACS Computerization Project with the support of
Government of Telangana and NABARD.
35 Interoperable ATMs in Twin cities of Hyderabad and
Secunderabad.
RuPay Debit cards issued to the Customers (EVM Chip Cards)
Important Milestones achieved by TSCAB Contd…..
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Personalized RuPay KCC cards issued to loanee members of
DCCB/PACS.
TSCAB and DCCBs included in the e-pass portal of Govt. of
Telangana.
TSCAB started Mobile Banking services and launched IMPS
services also.
Started Mobile ATM services.
Installed ATMs in Metro Railway Stations – First bank to install.
Issuing Rupay Platinum Cards for high value customers.
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Important Milestones achieved by TSCAB Contd….
Recruitment of Staff in TSCAB through IBPS:
2015: Managers -16, Staff Assistants-73 => 89
2017: Managers-41, Staff Assistants-91 => 132
Recruitment of Staff in DCCBs through IBPS:
2015: Assistant Managers-118 , Staff Assistants-788 => 906
Introduced Mentoring System to the new recruits.
ISO certified Training Institute – TSCAB-CTI.
Written Test for Confirmation of services for new recruits.
Promotion process streamlined :
=> Every Year August / September.
=> Written Test by IBPS
=> Written Test marks being displayed on Notice Board
immediately after receipt from IBPS.
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HRD Initiatives/Best Practices:
Introduced Probation period for promotees also.
Introduced Performance Management System (Half yearly) for the
Employees up to AGM cadre.
The JOB Charts/Job Descriptions prepared and communicated to all
the employees.
Work Manual on the HR Matters is in the final stage of preparation.
Introduced Work Diaries from Staff Assistant to AGM in HO as well as
Branches w.e.f from 01.01.2017 at the end of the Month Summary
statement to be recorded by BMs.
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HRD Initiatives/Best Practices Contd….
HRD Initiatives/Best Practices Contd….
Bank has designed an Immersion Program to the new recruits to
provide knowledge on the working of DCCBs and PACS.
Introduced Annual Best Performance Awards to employees and
Branches.
Introduced One Time Incentive of Rs.5000/- on completion of CPEC
course and weightage is also given in Promotion.
To have better Employee – Employer relationship introduced Quarterly
Coordination Meeting with employees union/association.
Started implementing some of the recommendations of
Sri Amalorpavanathan Committee.
=> Reorganization of Departments
=> Annual Performance Appraisal Reports.
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Monday Morning Meetings (MMM) with all Senior Officers
of TSCAB.
Standardized meeting Schedules (Every Month):
• TSCAB Head Office Departments Review- 2nd and 3rd
• TSCAB Branch Managers Review meetings- 8th and 9th
• DCCBs CEOs Review Meetings -12th
• ALCO Meetings – Every alternate Monday (Fortnightly).
• Investment Committee meetings.
• DCCBs Designated Officers (DGM/AGM) meeting on 15th.
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Monitoring and Guiding Mechanism
(for DCCBs) – Best Practices
TSCAB DGMs nominated to the Boards of DCCBs as Financing
Bank’s representatives (Special Invitee).
Video Conferencing with DCCBs – Banks Specific/Subject
Specific.
DCCBs functioning being reviewed through DLMRC Meetings -
compulsory participation by TSCAB Nodal Officers.
Annual Inspection of DCCBs.
Conducting of Monitoring Studies on utilization of Long Term/
Investment credit.
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Monitoring and Guiding Mechanism ( for DCCBs) – Best Practices Contd…
Effective System of Internal Controls and Vigilance mechanism with
prime thrust on Internal Audit.
Internal Audit reports are being reviewed by Audit Committee.
Preventive Vigilance Committee meetings regularly every quarter
in all the Branches and H.O. Departments.
DGMs designated as Nodal Officers – Compulsory monthly visit to all
the branches.
AGMs designated as Verification Officers - Surprise verification of
Cash, Gold Ornaments, Re-appraisal of Gold ornaments etc.
Half yearly inspection of Branches of TSCAB by AGMs.
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Monitoring/ Reviewing and Guiding Mechanism
(for TSCAB Branches) – Best Practices
Weekly review/revision of per Gram Gold rate for Gold Loan.
Gold Ornaments auction on 28th / 29th of every month.
Review of Account - wise and Branch - wise over due cases in Monthly
Branch Managers Conference – Participation by SCDR – OSD and their
team.
Burger Alarms, CC Cameras installed in all branches and linked to
security control room at H.O.
Weekly Updation of Bank’s website
Branch level weekly meetings for all the employees (Including Sub Staff)
being convened by Branch Managers.
Pre Audit (by Budget Control Officer) for the Expenditure.
Expenditure Powers decentralized - Delegation of Powers to SOG.
Knowledge sharing session at the end of Branch Managers review
meeting every Month. 21
Monitoring/ Reviewing and Guiding Mechanism (for TSCAB Branches)- Best Practices Contd…
Monitoring/ Reviewing and Guiding Mechanism (for TSCAB Branches)- Best Practices Contd…
Daily reporting through WhatsApp groups:
Groups Daily Report on
• TSCAB SOG
• TSCAB BMs & SOG
• ITSD (IT Services Dept.)
• DCCBs CEOs and
TSCAB SOG
• Daily deposits (Total and CASA)
• Daily financial particulars - Gold Loans
• Aadhar seeding.
• ATM Hits and Commission earned.
• Cash balance and Retention limit.
• Gold Loans - Daily DCB.
• Retail Loans recovery- Daily DCB.
• Problems faced on IT related and other
important issues.
• Investments and Funds flow.
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Thank you
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