CTI IMES

An ISO 9001-2015 certified Institute. A quarterly newsletter published by TSCAB-CTI, Rajendranagar, Hyderabad -500030.

Jan– March 2019 - Vol.-1 - Issue - 4

from Director’s desk….

S eason’s greetings to all of you. Our Institute has just completed another academic year in its glorious jour-ney. Incidentally, “CTI Times” will be stepping into

its second year of publication. We express our sincere thanks to the CEOs and other staff members of our client institutions, with whose co-operation and valued support CTI could conduct its programs successfully.

Success breeds complacency and complacency breeds failures. Our CTI had never been complacent about its per-formance. It always introspects and endeavors to forge ahead with flying colours. It is towards this direction, we have redesigned the programs for Channel-II (Personnel of PACS) for the academic year 2019-20, by including one day field/exposure visits in the functional programs to provide the participants with a unique learning experience from interactions with field level personnel. We also propose to conduct two new programs for them, viz., “Corporate Gov-ernance in PACS” & “Project appraisal in FS & NFS activi-ties”.

As desired by the Managing Director, Apex Bank, our CTI prepared a “Manual on retail loans”, covering ten loan products. Loan policies and operational guidelines for each type of loan have been documented in this Manual for the benefit of the staff members. Efforts put forth by the Fac-ulty Members of our CTI in bringing out this manual are commendable. We are also pleased to place on record that our CTI brought out a Handbook on “Financial Ratios in SCBs & DCCBs”. The book deals about the significance and calculation of various financial ratios. Hope this publication will be of great use to our clientele. CTI had documented a success story of Gattu Duddenapally Large sized Coopera-tive Credit Society, which performs multi-dimensional activ-ities. We propose to bring out such success stories of other good working societies in future so that their best practic-es may be emulated.

In the last quarter of 2018-19, with financial assistance from SOFTCOB, NABARD our institute supplemented its infrastructure with a DSLR Camera, digital signage board, two laptops and a water softener.

We earnestly look forward to your continued patronage and support for successful conduct of all our programs.

Regards.

M R Srinivasa Rao Director

01 April 2019

Highlights of the success story of Gattu Duddenapalli Large sized Co-operative Credit Society, Karimnagar Dt.,

documented by CTI in March 2019. (A must read)

A man is great by deeds, not by birth” – Chanakya

It is envisioned by all concerned that all the PACS should transform themselves into vibrant business organizations by offering multiple products and services to their mem-bers under single roof. Despite several initiatives in this direction, very few societies are functioning on those lines in the country. Gattu Duddenapalli PACS in Telangana State is one such society. Following are the salient features documented in its success story, published by CTI.

Through a host of economic and social activities, Society provides qualitative and prompt services to its members besides creating direct and indirect employment to the villagers nearby. Praiseworthy !

Established in 1959, the society covers three villages with a total membership of 1951 as on 3 1 Mar 2018.

Managed by dedicated Management Committee and staff members (numbering around 40).

Continuously posting profits and declaring dividends every year.

Linking of its recovery with marketing of agricultural produce of members under Indira Kranthi Pathakam.

Operates in its own office building sprawling in an area of 14 acres.

Banking operations fully computerized.

Provides locker facilities. Runs a para-boiled Rice Mill of 24 MT capacity with a

capital outlay of Rs.120 lakhs.

Established two modern Seed processing plants with a total cost of Rs.32 lakh.

Owns 19 godowns with an aggregate storage capacity of 7600 MT in its three villages.

Runs a petrol & diesel retail outlet .

Operates two weigh bridges . Owns a ‘function hall’ and lets out for social events.

Group insurance coverage for all members.

Provides financial assistance for funeral expenses. Meritorious awards to members’ wards studying

higher classes.

TSCAB –CTI, conveys

its best wishes to the Society

for all success in all its endeavors.

Till the time you don’t decide to run, you are not in the competition - Chanakya

Table No.1 Performance of CTI during the academic year 2018-19

Particulars Channel-

I Channel-

II Others Total

No. of programs 36 25 45 106

No. of participants 641 400 1855 2896

No. of trainee days 3075 1785 2301 7161

Only five programs for Induction—II were conducted under Channel—1 (for newly recruited staff of Apex Bank /DCCBs). Other than Induction programs, as many as 31 programs , covering 533 participants, were conducted during the year, the highest in the past three years.

Total number of programs conducted in 2018-19 stood at 106, slightly higher than the programs conducted in the last two years. (Table No.4)

Coverage of participants rose to 2896 from 2393 in 2016-17, registering a growth rate of 20%. (Table No.4)

Nevertheless, there was a decreasing trend in number of trainee days. (7161 during 2018-19 as against 11178 and 9971 during the past two years respectively—Table No.4). Following reasons could be attributed for this position. Many Induction—I & II programs were conducted

during those two years as there was recruitment and it was necessitated to conduct such programs whereas there was no recruitment during 2018-19. Only Induction –II programs were conducted for those who have undergone Induction-I earlier.

In the year 2017-18, emphasis was given to train PACS staff under computerization and as many as 27 programs were conducted for 640 participants for a duration of 6 days (this factor adds to increase in the number of trainee days).

As many as fifteen programs under Channel-II were to be cancelled owing to no/low participation.

Good number of workshops (both in-house and on-location) were conducted during 2018-19, as may be seen from the following table.

Table No.2 Programs conducted for Channel—I during 2018-19

Program Number Trainees Trainee

days

1 Induction –II 5 108 648

2 Project appraisal FS 1 19 95

3 Project appraisal FS/NFS 9 160 960

4 Internal checks & control 2 37 111

5 Domestic enquiry 2 22 66

6 KYC & PML Act 4 73 219

7 Cyber crimes in banks 3 51 153

8 Balance sheet / P&L a/c 3 45 135

9 Profit planning for DCCBs 1 17 51

10 Management Dev. Prog. 2 46 138

11 Standardized Banking Prog. 2 31 403

12 Law of banking & practice 1 17 51

13 Asset Liability Management 1 15 45

Total 36 641 3075

Program Number Trainees Trainee

days

1 PACS computerization 10 188 1128

2 PACS as profit center 5 77 231

3 PACS into MSCs 2 20 60

4 CAS & MIS in PACS 4 74 222

5 How to do existing business better.

2 21 84

6 Recovery Management 2 20 60

Total 25 400 1785

Table No.3 Programs conducted for Channel—II during 2018-19

Table No.4 Performance of CTI in the previous three years

Particulars 2016-17 2017-18 2018-19

No. of programs 102 98 106

No. of participants 2393 2458 2896

No. of trainee days 9971 11178 7161

Title of workshop Number Trainees Trainee

days

1 Branch Management 1 35 35

2 Customer service 3 86 86 3 New Retail loan policies 3 104 104

4 System-based auditing for Dept. auditors

9 297 594

5 OSS returns 1 47 47

6 Retail loan policies 1 57 114

7 Internal checks 10 462 462

8 Financial Audit—PACS 16 744 744

9 High-end system Admn. program—DCCBs

1 23 115

Total 45 1855 2301

CTI IMES

We earnestly appeal to all the CEOs of DCCBs & PACS to identify the staff members to be sent to various pro-grams well in advance—say as soon they receive the Annual Training Calendar in the month of May every year so that adequate participation is ensured in all the programs conducted by CTI.

As an adage goes ..“Tell me and I forget, teach me and I may remember, involve me and I learn” , let’s involve

all our staff members in the learning process.

News of relevance in Indian economy & banking during the quarter January — March 2019.

(Source: various websites)

Exemption limit for Goods and Services Tax (GST) registration has been increased to Rs.40 lakh from the current Rs.20 lakh to ease the cost of compliance for small taxpayers or mi-cro, small and medium enterprises (MSMEs),

as decided in GST Council meeting held on 10 January 2019.

RBI voiced concern on the spike in NPAs un-der Mudra Yojana. Total disbursements under the scheme stood at Rs 2.46 trillion in FY 2018. More than 4.81 crore micro-borrowers were benefited. RBI raised red flag over the scheme

since bad loans under the scheme increased to Rs 11,000 crore. (14 Jan 2019)

IMF retained India’s growth projection at 7.5 per cent for 2019-20 and said it is likely to ac-celerate to 7.7 per cent in 2020-21. While India will remain the fastest-growing economy in the world, its growth rate is poised to pick up

in 2019, benefiting from low oil prices and a slower pace of monetary tightening as inflation pressures ease. (23 Jan 2019)

CTI IMES

RBI transferred Rs.28,000 crore as interim divi-dend to GoI. With this, the Government re-ceived a total of Rs 68,000 crore from the cen-tral bank in the current fiscal. (20 February 2019)

GoI approved capital infusion of Rs.48,239 crore to 12 State-run banks to ensure that the lenders are able to maintain regulatory capital require-ment and step up their lending and boost over-all growth in the economy. (21 February 2019)

RBI announced that SBI, ICICI and HDFC Banks would continue as Domestic Systemically Im-portant Banks (D-SIBs) for 2018. This creates an expectation of government support for them in times of financial distress. (18 March 2019)

Dena Bank, Vijaya Bank merged with Bank of Baroda to become India's third largest bank with a total business of about ₹15 trillion. It becomes the third-largest lender in India, next

to SBI and HDFC bank. (01 April 2019)

Brief list of important circulars issued by RBI/NABARD to StCBs/CCBs during January – March 2019. (for full details, please browse their websites, viz., rbi.org.in & nabard.org.in)

RBI Cir. No.Ret.BC.23/12.01.001/2018-19, dated February 07, 2019—Change in Bank Rate from 6.75 percent to

6.50 per cent with effect from the date of issue of the circular.

NB./ MCID/ 2L4ilo / ES-23/2ol8-19, dated 29 January 2019 - Project for digitization of SHGs –e-shakti -User

Manual—Access and use by banks - Addendum .

NB. DOR. ST-Pol/2871/KCC.1/2018-19, dated 13 February 2019— Extension of KCC Scheme for provision of

working capital for Animal Husbandry and Fisheries .

NB.DOR-Policy/ 2J| 2967/IS-I /20l8-19, dated 15 February 2019 - GoI’s scheme on implementation of modified

Interest Subvention Scheme for short term crop loans during 20l8-19 and 2019-20.

No. NB. DoS/ POL/ 4460 /J-1/2018-19, dated 05 March 2019— Risk Weight applicable on Interest Subvention

amount receivable from GoI for calculation of CRAR. Such amounts being direct claims from GoI will attract

zero percent risk weight.)

“Banquiz” (a) What are the parameters prescribed by RBI for Commercial banks under Prompt Corrective Action?

(b) What are stressed assets ? (c) Which is the highest denomination of currency note that was issued by RBI so far ?

(d) How is Gross Value Added (GVA) calculated ? (e) What is the full form of LTV Ratio in banking parlance and how and why is it calculated ?

Answers in Page No.4

Even if a snake is not poisonous, it should pretend to be venomous’ - Chanakya

Exposure visit of Officials and non-officials of STCCS in West Bengal to Apex Bank, Karimnagar DCCB & Gattu Duddenapalli LSCS —18 to 21 Feb. 2019

Academy for Co-operative Management, Research & Training (ACMART), Kolkatta, our counterpart in West Bengal State organized an exposure visit to Telangana State for officials and non-officials of STCCS of West Bengal. A team

of twelve members visited our Apex Bank, Karimnagar DCCB & Gattu Duddenapalli LSCS and interacted with the ground level functionaries . CTI provided all logistic support and co-ordinated their visits in the State.

Dr. N. Muralidhar, MD, Apex Bank explained to them about the best management practices adopted in Apex Bank.

Program on CAS & MIS for Staff of PACS—18 to 20 Feb 2019

CTI IMES

Highlights of interim Budget 2019 –20

No income tax for earnings up to ₹ 5 lakh Individuals with gross income of up to ₹ 6.5 lakh

need not pay any tax if they make investments in provident funds and prescribed equities.

Standard tax deduction for salaried persons raised from ₹ 40,000 to ₹ 50,000.

TDS threshold on interest on bank and post office deposits raised from ₹ 10,000 to ₹ 40,000.

TDS threshold on rental income increased from ₹ 1.8 lakh to ₹ 2.4 lakh.

Package of ₹ 6000 per annum for farmers with less than 2 hectares of land. Scheme to be called Pradhan Mantri Kisan Samman Nidhi Yojana.

One lakh digital villages planned in the next 5 years. ESI cover limit increased to ₹ 21,000. Minimum pen-

sion also increased to ₹ 1000. Mega pension scheme for workers in the organized

sector with an income of less than ₹ 15,000. 2% interest subvention for farmers pursuing animal

husbandry. Decision taken to increase MSP (minimum support

price) by 1.5 times the production cost for 22 crops.

Let us know . . . Foreign Exchange Reserves of our country

Foreign Exchange Reserves are the reserve assets held by a central bank in foreign currencies, which back the liabili-ties on currency issued as well as to influence monetary policy. They act as a buffer during the challenging times to the economy of any country. Components of India’s FOREX Reserves include Foreign Currency Assets (FCAs), Gold Reserves, Special Drawing Rights (SDRs) and RBI’s reserve position with IMF. FCAs constitute the largest component of Indian FOREX. They are expressed in terms of US dollars. They are subject to fluctuations due to appreciation / depreciation of non-US currencies. These reserves stood at INR 27,981.4 Bn as on 22 March 2019. (latest available). Details were as follows:.

Answers for “Banquiz” CRAR, Net NPA Ratio & Return on Assets. NPAs + Restructured loans + Written off assets. Rs.10,000/-. Post-independence, reintroduced in 1954

and demonetized in 1978. GDP + Subsidies on products - Taxes on products. Loan to Value Ratio (Ratio of loan amount to the val-

ue of collateral). Helps to measure mortgage risk.

Source: RBI

Exposure visit of Officials & non-officials of STCCS in West Bengal to Telangana State —18 to 21 Feb 2019

₹ Bn

Foreign Currency 26,009.0 SDRs 100.3

Gold Reserves 1,666.5 IMF Reserve 205.6

Shri M Suresh, Sr. Manager, TSCAB

joined CTI as Faculty Member with effect from 08 February 2019.

Team of CTI welcomes him to its fraternity.

Program on system-based auditing in PACS for Departmental Auditors—11 & 12 March 2019.

‘Learn from the mistakes of others. You can’t live long enough to make them all yourselves – Chanakya