shivalik mercantile co-operative bank limited overview shivalik mercantile co-operative bank,...

Shivalik Mercantile Co-operative Bank Limited

CONNECTING WITH CUSTOMERS IN INDIA’S ECONOMIC LAST MILE

20th Annual Report 2016-17

saathihar waqt ka

CONTENTS

Vision and Values

Highlights 2016-17

Corporate Information

02

03

04

Corporate Overview Reaching India’s Economic Last Mile

Notice of Annual General Meeting

Chairman’s Message

Report of the Board of Directors

Corporate Governance Report

Long-Term Perspective Plan

Annual Operational Plan

Products & Services

Financial Inclusion: Microfinance

Financial Statements

Our Branch & ATM Network

5 Years Financial Highlights

06 16

52

24

26

28

51

50

08 31

3209

12Board of Directors & Senior Management Team

05

Vision and Values

Vision:

To serve the lowest strata of society with the best products at the best prices and the best technology- driven customer service, at the same time being a model employer for the national industry and emerging as a global role model in the small banking sector.

Values:Strong Relationship With Employees & Customers Building Trust Unmatched Service Long Term Relationship Go an Extra Mile To Help Customer

Mutual Respect For All Employees & Customers Honor Each Other’s Commitments Put Yourself In Other’s Shoes Respect One Another Respond To People

Customer Centricity Listen To The Customer Customer Delight Customer Connect Never Underestimate The Customer

Big On Integrity & Reputation Honesty Transparency Moral Values Being Ethical

02 | Shivalik Mercantile Co-operative Bank Limited

Highlights 2016-17

D1476 croresTotal Business

D559 croresAdvances

13.34Percentage increase in public deposits

1.35Percentage of Net NPAs

4.14Percentage increase in proportion of sub-25 lakh loans

D252 croresTotal credit extended to priority sector

D297 croresCredit to sub-25 lacs of total advances

D916 croresDeposits

Annual Report 2016-17 | 03

Corporate Information

RBI License No.UBD.UP.1468 P, dated 20th Sept. 1997.

Date of Commencement5th Sept. 1998

Registered UnderMulti-state Cooperative Societies Act, 2002, Regn. No. L11016/10/2010-L&M dated 14th Sept. 2010

Area of OperationUttar Pradesh and five districts of Madhya Pradesh. We have also received approval from RBI for area expansion in Delhi and two districts of Uttarakhand.

Acquisitions1. In 2010 – Bhoj Nagarik Sahakari

Bank Maryadit, Dhar, M.P.

2. In 2012 – Malwa Commercial Coop. Bank Ltd., Indore, M.P.

Regd. Office13/1207, Ansari Road, Saharanpur-247001 (U.P.)Telefax: 0132-2612381; 2612382

Head Office IHakikat Nagar, Saharanpur – 247001 (U.P.)Telefax : 0132-2726125; 2726147

Head Office IIFusion Square, Plot No 5A & 5BSector 126, Noida – 201301Telefax : 0120-4060000

[email protected]/shivalikbank

IFS CodeSMCB000 1001 till 1023 where last 4 digits represent the relevant branch code

No. of Branches23 branches in 4 clusters*

1. Cluster 1 : 07 branches in NCR

2. Cluster 2 : 12 branches in District Saharanpur

3. Cluster 3 : 03 branches in Madhya Pradesh

4. Cluster 4 : 01 branch in Lucknow

* 1 branch each in Madhya Pradesh and Lucknow opened in July and August 2017 respectively.

Business Correspondent Offices12 - Affiliated with and working under various branches.

Banking Hours10 a.m. ~ 4.00 p.m. – Monday to SaturdayHoliday on 2nd and 4th Saturdays

No. of ATMs25 (all branches and 4 BC offices)

No. of CDMs25 (all branches and 4 BC offices)

No. of Micro ATMs236

CBS Platform in useCBS solution, ‘Profile’ by FIS, a Fortune 500 company.

ATM-cum-Debit CardsRupay powered EMV cards can be used anywhere in India at all Rupay enabled ATMs.

Online shopping through Bill-Desk and Pay Secure.

Card can be used at all merchant establishments equipped with Point of Sale (PoS) terminals.

Free Accidental insurance on each active card is available.

Statutory AuditorsM R S & CO., Chartered Accountants, Ghaziabad.


Board of Directors

Mr. Yashvir Kumar Gupta, Chairman

Mr. Shiv Puran Gulati, Vice-Chairman

Mr. Sudhakar Agarwal, Director

Mr. Vijay Kumar Dhingra, Director

Mr. Sanjay Gupta, Director

Dr. Sanjeev Mittal, Director

Mr. Sarvesh Singhal, Director

Dr. Kamal Kant, Director

Mr. Arun Kumar Malik, Director

Mr. Satyasheel Rao Pawar, Director

Mr. K C Misra, Director (Co-opted) (Resigned with effect from June 18, 2017)

Mr. Suveer Kumar Gupta, MD & CEO

Senior Management Team

Mr. CP Agarwal, General Manager

Mr. Gaurav Mittal, General Manager

Mr. Harsh Mittal, CA, General Manager

Mr. Ankit Khare, IT

Mr. Gaurav Kumar Gupta, Finance and Accounts

Mr. Pradeep Shukla, Compliance

Mr. P. K. Gupta, Audit (Joined with effect from August 17, 2017)

Mr. Ravi Ratnaker Singh, Operations

Mrs. Ruchi Kashyap, Learning and Development

Mr. Sarul Chaudhary, Insurance

Mr. Sumeet Garg, HR

Mr. Sumit Mehendiratta, Credit

Mr. Vijay Agarwal, Microfinance

Mr. Vishal Kaushik, Administration

Mr. Amit Mahajan, Cluster Head

Mr. Divya Sethi, Cluster Head

Mr. Himanshu Garg, Cluster Head

Mr. Vivek Kansal, Cluster Head

Mr. Hariom Rastogi, Company Secretary


Corporate Overview

Shivalik Mercantile Co-operative Bank, originally registered as a co-operative society, was granted the license to conduct banking operations in Saharanpur by the Reserve Bank of India in September 1997. Since then, Shivalik Bank has come a long way, expanding its footprint and has achieved Tier-II status. The Bank was eventually de-registered under the Uttar Pradesh Co-operative Societies Act, 1965 and registered under the Multi-state Co-operative Societies Act, 2002 as Shivalik Bank entered the Madhya Pradesh market in 2010, becoming the first multi-state Co-operative Bank of Uttar Pradesh.

Shivalik Mercantile Co-operative Bank is headquartered in Saharanpur with the head office split between Saharanpur and Noida. As of 31st March 2017, the Bank had 21 branches and 12 Business Correspondent offices spread over the states of Uttar Pradesh and Madhya Pradesh.

Core competenciesThe Bank continues to grow as a

co-operative engaged in assisting

the grassroots level, and offers

deposit products, loan products,

microfinance services and other

non-banking services such as

insurance, foreign exchange, Point

of Sale (POS) solutions.

PresenceShivalik Mercantile Co-operative

Bank is headquartered in

Saharanpur (Uttar Pradesh) and

operates through 21 branches

across two states. In UP, the bank

has presence in the districts

of Saharanpur (12 branches),

Muzaffarnagar (2 branches),

Meerut (1 branch), Ghaziabad (2

branches) & Noida (2 branches).

In MP, the bank is present in the

districts of Dhar (1 branch) &

Indore (1 branch).

StrengthsBeing the first and largest

multi-state co-operative bank

of Uttar Pradesh, Shivalik Bank

offers an unparalleled range

of technologies which places

banking at the fingertips of their

consumers. The Bank is leveraging

technology and its knowledge to

extend its reach into the last mile

and offer financial services for the

masses.

Products and offeringsThe product offerings include

various deposit schemes (savings/

current accounts, fixed and

recurring deposits), loan products

(demand loans, term loans,

revolving credit and financial

guarantees against tangible

securities) and additional financial

services like insurance, remittances

through NEFT and RTGS as well as

ATM/CDM facilities.


1998Shivalik Bank’s first branch starts functioning in Saharanpur

2014 Completes installation

of CDMs and ATMs across branches and BC offices

Becomes the first co-operative bank in North India to issue debit cards for online / PoS shopping

Collaborates with merchants to offer in-house PoS devices for electronic payments

Launches SMS-based enquiry application

1999Achieves full branch computerisation, first in Saharanpur district.

2015Launches net banking and Mobile Banking

2012Opens a branch in Indore, Madhya Pradesh after acquisition of Malwa Commercial Cooperative Bank Limited.

2010 Achieves a deposit base

of more than C100 Cr and becomes a Tier-II bank covering the entire State of Uttar Pradesh

Becomes the first and only multi-state cooperative bank of Uttar Pradesh

Opens a branch in Dhar, Madhya Pradesh after acquisition of Bhoj Nagarik Sahakari Bank Maryadit

Achieves complete Core Banking (CBS) status

2016 Becomes the first bank to

launch cloud based RTGS/NEFT services

Launches NACH and NECS to improve the Bank’s payment system

Implemented Anti-Money Laundering package (AML)

Launches Green PIN - Paperless ATM PIN

Becomes compliant with Direct Benefit Transfer (DBT)

Installs solar panels at ATMs in remote locations to maintain uptime and to reduce the carbon footprint

2017 Launches Account opening via

Micro ATMs

Implemented e-KYC authentication

Launches e-commerce transactions for debit card holders

Goes live on IMPS

Sets up a second Head office at Noida Receives RBI approval to open

10 new branches in U.P. and M.P.

2013 Starts issuing Rupay ATM cum

Debit cards

Installs ATMs at all branches

Starts opening business correspondent offices in remote areas in Uttar Pradesh and Madhya Pradesh

Changes CBS platform to world-class Profile software, developed by FIS, a Fortune 500 company and a world leader in banking technology


Products & Services

Deposits

Digital Services

Loans

Savings

Fixed Deposits

Flexi Recurring Deposits

Current

Door-to-Door Deposit

Home Loans

Personal & Consumption Loans

Gold Loans

Car / Auto Loans

Two-wheeler Loans

Loans for Working Capital

Reverse Mortgage Loans

Roof Top Solar Loans

Loans to Professionals & Self Employed

Loans for Micro/SSI Units

Retail Traders Loans

Commercial Building Loans

Commercial Vehicle Loans

Self Help Groups (SHG) & Mini SHG

Loans Against Warehouse Receipts

Shivalik Green Card (Kisan Credit Card)

Agriculture Term Loans

Net Banking

SMS Banking

Debit Card

ATM Banking

Cash Deposit Machine

POS Machine

AEPS (Adhaar Enabled Payment System)

Fund Transfer (RTGS/NEFT/IMPS/NACH)

e-commerce

Mobile Banking

Add-on services

Insurance

Remittances

Lockers

Business Correspondents

Forex

PAN card services


Our Branch & ATM Network*

Cluster 1: NCR Region

Noida 27: Bhoja Mkt., Nr. Vinayak Hospital, Sector 27, Noida-201301Branch Code: 1007

Telefax: (0120) 2555333 / 5334, 9540407222Email id: [email protected]

Ghaziabad: G.T. Road, Nr. Bhatia Mod, Ghaziabad-201001Branch Code: 1015

Telefax: (0120) 2860003, 8750037222Email id: [email protected]

Noida 135: WA 68, Sector 135, NoidaBranch Code: 1016

Mobile : 99901 06135Email id: [email protected]

Meerut: C-2/6, Nai Sadak, Shastri Nagar, Garh Road, Meerut-250001Branch Code: 1008


Muzaffarnagar: South Bhopa Road, Nai Mandi, Muzaffarnagar-251001 Branch Code: 1018


BC Offices:Ghizore, Sadarpur (affiliated to Noida 27 Branch)Mawana, Hastinapur, Maliyana (affiliated to Meerut Branch)

Indirapuram: Raison Shopping Complex, Ahinsa Khand-II, Indirapuram, GhaziabadBranch Code: 1019

Tele : (0120) 2651717, 9717490952Email id: [email protected]

Khatauli: Ward No. 8, Ganeshpuri, G.T. Road, Khatauli-251201, Distt. MuzaffarnagarBranch Code: 1020



Cluster 2: District Saharanpur

Ansari Road: 13/1207, Ansari Road, Saharanpur-247001Branch Code: 1001

Telefax: (0132) 2612381, 2612382, 9927145550Email id: [email protected]

Gangoh: Rambagh Road, Gangoh-247341Branch Code: 1002

Telefax: (01331) 234437, 234438, 9927116660Email id: [email protected]

Hakikat Nagar: Hakikat Nagar, Saharanpur-247001Branch Code:1003

Telefax: (0132) 2726125, 2726147, 9927175550Email ID: [email protected]

Ambehta: Main Road, Ambehta, Saharanpur-247340 Branch Code: 1005


Chilkana Road: Chilkana Road, Saharanpur-247001Branch Code: 1009

Mobile : 9690990033Email id: [email protected]

Deoband: Subhash Chowk, Railway Road, Deoband-247554Branch Code: 1004


Sarsawa: Main Market, SarsawaBranch Code: 1012


Nanauta: Deoband Road, NanautaBranch Code: 1013


Rampur: Moh. Mahajanan, Rampur ManiharanBranch Code: 1014


Sharda Nagar: 1/1245 Wake Mohalla, Khalasi Line, Sharda Nagar, Saharanpur-247001Branch Code: 1017

Mobile: 84770 06125Email id: [email protected]

Madhav Nagar: Nr. Telephone Exchange, Madhav Nagar, Saharanpur-247001Branch Code: 1021

Mobile: 9837060380Email id: [email protected]

BC Offices:Nakur (affiliated to Ambehta Branch)Chutmalpur (affiliated to Hakikat Nagar Branch)

Nagal: G.T. Road, NagalBranch Code: 1011



Cluster 3: M.P. Region

Dhar: Mandi Samiti Road, Opp. Dhareshwar Temple, Dhar - 454001Branch Code: 1006


Indore: 6, Jagjivan Ram Nagar, Main Road, Patnipura Chauraha, Indore-452011 Branch Code: 1010


Khargone: 73 Jawahar Nagar, Khargone, Madhya Pradesh- 451001Branch Code: 1022

Telefax: (07282) 232425, Email id: [email protected]

Cluster 4: District Lucknow

Upcoming Branches*

Alambagh: 565-KA/68, Amrudhi Bagh, Sringar Nagar, Alambagh, Lucknow 226005, Uttar PradeshBranch Code: 1023

Telefax: 0522- 4241777Email : [email protected]

NCR Noida Hapur Mawana Sardhana

Saharanpur Shamli

MP Ujjain Dewas

Lucknow Vikas Nagar

*All our branches are equipped with ATMs and CDMs

BC Office: Patnipura (affiliated to Indore Branch)

* To be operational by March 2018


5 Year Financial Highlights

CAPITAL

Share Capital (C Crores)

Capital Adequacy Ratio(CRAR %)

Ratio of Tier I to Tier II Capital

Growth in Capital Funds (Tier I + Tier II)(%)

Reserves(C Crores)

Net Worth(C Crores)

22.37

41.33 44.66 43.89 45.10

2012-13 2013-14 2014-15 2015-16 2016-17

14.28 16.15 13.75 13.85 15.07

96:4 98:2 96:4 95:5 94:6

63.06

76.18

11.49

5.3

12.67

5.17 6.78

9.78 12.83 19.94

30.59

51.94

57.13

61.22 65.69

INVESTMENTS

Investments(C Crores)

Yield on Investments (%)

77.61

116.43

212.34 184.8 245.28

8.77 9.33 9.63 8.32 8.80

OTHER INCOME

Non-Interest Income(C Crores)

2.43

4.74 5.71 5.01 4.76


DEPOSITS & ADVANCES

INTEREST

NPA’s

Deposits(C Crores)

Interest Income(C Crores)

Interest Expenses(C Crores)

Net Interest Income(C Crores)

Net Interest Margin(%)

Gross NPA (%)

Net NPA (%)

Advances(C Crores)

Cost of Deposits (%)

Yield on Advances (%)

2012-13 2013-14 2014-15 2015-16 2016-17

8.13 7.98 8.20 7.85 7.02

318.46

398.86

775.59 809.60 916.97

220.08

283.96

557.09 602.22 559.51

12.85 13.50 13.65 13.03 12.99

31.31

42.60

58.67

94.97 100.85

22.47 28.14 40.37

62.10 61.79

8.84

14.46

18.30

32.87 39.06

3.20

4.28 4.22 3.88 4.34

0.23

1.50

0.48

1.26

2.29

0.00

1.10

0.14

0.60

1.35

CD Ratio(%)

69.11 64.85 71.83 69.79 61.03


PROFITABILITY

Operating Profit (C Crores)

Net Profit After Tax and Provisions(C Crores)

Return on Equity (ROE) (%) (on Capital plus reserve)

Return on Avg. Assets (Operating Profit / Avg. Assets) (%)

3.23

8.51

9.21

15.09 17.63

2.18

5.22

4.95

7.35

10.02

Total Nos. of Employees

Business per Employee (C Lacs)

Operating Profit per Employee (C Lacs)

156

194

247

256

453

345.22

351.97

539.55 445.20

325.99

2.07

4.39

3.73

5.89

3.89

Average Assets(C Crores)

Total Business (C Crores)

Dividend (%)

301.50

392.05

554.60

862.43 961.72

538.54

682.82

1,332.68 1,411.82 1,476.48

12% 12% 8% 9% 9%*

EMPLOYEE PRODUCTIVITY

OTHERS

7.88

10.85

10.01

12.69

15.27

1.07

2.17 1.66

1.75

1.81

2012-13 2013-14 2014-15 2015-16 2016-17

* Proposed subject to approval in ensuing AGM


Shivalik Mercantile Co-operative Bank Limited is one of the fastest growing co-operative banks in India and is Uttar Pradesh’s largest urban co-operative bank.

We are dedicated toward our goal of serving customers

at the bottom-end of the spectrum and helping

achieve financial inclusion for all.

We are effectively utilising digital tools and services to

scale our operations and offer the best possible service

to our customers.

The result is that Shivalik Mercantile Co-operative Bank

is fast becoming the go-to bank for the community

with the best technology and personalized care for all

banking needs.

Shivalik Mercantile Co-operative Bank Limited - One of the most technology driven banks in India. Connecting with customers in India’s economic last mile.


Although my name is Azad and I have lived in an area of the same name with my five

children and 11 family members, if it were not for Shivalik Bank, I wouldn’t have known the true meaning of azadi. Because before this it was something like this – three earning members trying desperately to make ends meet, doing the rounds of big, private banks for loans which would never get approved.

Then I got to know about Shivalik Bank and in 2016 I approached them for a loan worth C25 lac to set up a water purifier and restaurant business which I now run in the Azad Market area of Noida. I eventually availed of their Current, Savings & Fixed Deposit services as well. They addressed my every single query and handheld me during the complicated process of loan sanctioning. What struck me was how cooperative the staff members were.

Ek chhote business ko start karne mein jo bhi madat ho sakti hai wo di hai Shivalik Bank ne. Yeh ek bank hai jo har waqt aap ka saath deta hai. Azad Bhati, 36

Azad Market, Noida


In 1998, I was seeking to renovate my ancestral home in Ansari Road, Saharanpur. We had nine people living in a small space; we just had to get a new floor up as soon as

possible. It took Shivalik Bank just three days to process loan arzi and sanction C15 lac.

When people ask me the secret behind our enduring relationship, my reply is ‘trust’. Shivalik Bank has the word ‘cooperative’ attached to it and the way I see it, this means reposing the trust that I will repay on time. Besides, I trusted Shivalik Bank to guide me during the home loan disbursal process. So even as times have changed and my local branch is packed with more computers than people, the human warmth remains undiminished.

I grew up in the Numaish Camp area of Saharanpur. I saw poverty from close quarters; poverty was like a member of the family. Shivalik Bank came to our rescue. They

explained that a rupee saved was a rupee earned.

Soon, I opened a savings and a fixed deposit account. My father and brother followed suit. Suddenly financial sustainability was within grasp.

The one thing that has impressed me about Shivalik Bank is the C200 DDS scheme. Ikatthe jud jaate hain paise, kahin jaana nahin padta. I took a business loan with a CC limit for starting a sugar supply and trading business.

Maine toh socha lottery lag gayi!

Sabse acchi baat hai ki naya customer ho ya purana, unke bartaao main koi fark nahi aaya. Yeh ek bank hai jo har waqt aap ka saath deta hai.

Ashish Gupta, 40 Ansari Road, Saharanpur

Aman Kochhar, 25 Numaish Camp, Saharanpur


In 1998, when I opened a fixed deposit account at Shivalik Bank, my motivation was proximity – the branch was close from home on Ansari Road in Saharanpur.

Over the years, I have come to realise that there are several traits that distinguish Shivalik Bank from other private banks.

Shivalik Bank is always approachable, offers customised services and makes sure that queries are addressed (no matter who you are or how small your bank balance is).

The result: I have opened an RD account to supplement my savings.

During this long association with Shivalik Bank perhaps the biggest test of faith came last year following demonetisation.

As cash supply dried and queues outside private bank ATMs stretched, my eight other family members could rest easy because we were in good hands.

Agar Shivalik Bank na hota toh shayad kabhi pata hi nahi chalta ke paisa bachake paisa bana bhi sakte hai. Yeh ek bank hai jo har waqt aap ka saath deta hai.

Alok Gupta, 45 Ansari Road, Saharanpur


Living where I have grown up – the Nangli Wazidpur area of Noida – was a challenge. Summers were as hot as 48 degrees; winters were as chilly as 4 degrees.

I hoped that my wife and children got the chance to live in a home where they could stay adequately protected.

So three years ago; we decided to avail of a gold loan from Shivalik Bank to fulfill our need for a new home.

Pichle do saalon mein maine ek personal loan bhi liya hain aur ek Current Account bhi khol liya hai. When the demonetisation happened and I was left with practically no cash in hand, the bank helped transfer funds from another bank account so that I could stay liquid. Besides, Shivalik Bank provides a comprehensive portfolio of retail loan services.

What should a B.Tech student from Saharanpur do when she needs money to finance her studies?

Simple; go to her nearest Shivalik Bank branch.

I say this from experience. Last year, when I needed C68,000, I availed of Shivalik Bank’s Gold Loan scheme. I had heard good things about them – easy installments, zero hassle, helpful people …now I got to experience this first-hand.

Sabse acchi baat hai ki pichle saal jab notebandi hui, tab Shivalik ne bohot sahaara diya, aur paise lene aur dene ke digital tareeke sikhaye.

I opened a savings account as well. My father is the sole breadwinner for our family of five; it is imperative that I relieve his burden in some way.

I can concentrate on my studies and they take care of the rest.

Jab bhi main unke paas gaya hu unhone meri ji jaan se madad ki hai.

Mujhe apne do pairo pe khadaa hona hai aur Shivalik Bank mujhe is cheez main kaafi madad kar rahi hai.

Devendra Chauhan, 24 Nangli Wazidpur, Noida

Dikshika Sharma, 23 Hakikat Nagar, Saharanpur


When I was a 20 year old in the border area of Western Uttar Pradesh, things

were not very straightforward – you walked up to a bank and asked for a loan.

More often than not, these requests fell on deaf ears. But when I walked to the nearest Shivalik Bank branch for a warehousing loan, I was in for a surprise.

These are things that Shivalik Bank provides – direct access, responsive service and proactive attitude. And here is the thing: most of my fellow account holders (as well as me) are not ‘HNI’ clients. We are common folk

that you see every day trying to earn a living and making sure that our children have it somewhat easier.

Hence, the biggest differentiator of Shivalik Bank is a ‘no discrimination’ policy.

So when people say, “Kya Goyalji ab toh koi bade bank main khaata khol leejiye”, I smile and say “Nahi, shukriya.”

Instead I ask, “Aapne Shivalik Bank ki sevaayen li hain?” The result has been that a lot of my peers from Mohalla Babu Rai have become engaged with Shivalik Bank.

And they all have the same thing to say –

Shivalik Bank ke employees sabka ek barabar khayal rakhte hain Dipanshu Goyal, 38

Mohalla Babu Rai, Gangoh


In Sector 53 of Noida, the place where I come from, C25 lac is a princely sum. So, when I approached Shivalik Bank for such a big loan to start a dairy business, I had my

fingers crossed. However, all my worries were put to rest by the helpful nature of employees. They only asked for the necessary documentation and I did not have to go from table to table asking for some kind of sanction or the other. Encouraged, I also took a loan for renovating my house.

I’ve got a steady income and we were financially secure. Our forefathers say that ‘Jitni chaadar ho utna hi paao failana chaahiye’ (one should not go beyond his capacity).

This friendly behavior, coupled with quick loan processing, has provided me with a complete peace of mind.

B eing a resident of Hakikat Nagar has its perks. It is close to a number of markets and that makes it a bustling community.

However, being an entrepreneur is perhaps as challenging as it is in any other part of India. I was looking to venture into the business of batteries and inverters three years ago. This required sizeable seed capital – C1.25 Crores - and rather than go to one of the fancy private banks, I selected Shivalik Bank, a decision that has emerged as a game-changer.

The ease-of-access that Shivalik Bank offers for document verification or loan sanction is incomparable - with a smile on their face. This approachability sets your mind at ease and you can then focus on running our business rather than worrying about how to repay your next installment.

I have also opened a Current Account and enjoyed the same kind of service in this regard as well. I actively refer Shivalik to my friends and associates and they too have become dedicated followers especially after the demonetisation when Shivalik Bank helped all of us stay afloat.

Chote business loan ke liye Shivalik Bank se mujhe loan asaani se mil gaya Mahesh Kumar, 45

Sector 53, Noida

Shivalik Bank ke employees hamesha sabse muskura ke baat karte hain Neeraj Gupta, 50

Hakikat Nagar, Saharanpur


Its been quite some time that I have ben associated with Shivalik Bank.

I run a paan-shop and I used to take my humble earnings home with me every day, spend whatever was needed and save the rest in cash.

Then a friend introduced me to Shivalik Bank’s daily deposit scheme. After meeting the staff, all my apprehension disappeared! Jab bhi jaao unka saath milta hai, maano ki family member jaise koi hai. I now have a savings account as well as a daily deposit account with them. This allowed me to save a certain sum daily. The result was I was able to meet an anticipated liability at the end of the specified period with ease.

Aise daily bachat karne ka tarika mujhe kabhi maloom hi nahi hota agar Shivalik Bank se main juda na hota.

Pawan Badheja, 40 Numaish Camp, Saharanpur


The year was 2004 when I started my own sugar business. I mobilized a loan for C1.5 Crores to set up Singhal & Sons in the Jawahar Park area of

Saharanpur. This was 13 years ago and I haven’t had a single complaint. Even during the demonetisation period, the bank did not turn me away empty-handed.

I have taken home loans, consumer loans and even availed of their Current and Savings Account and Forex services. I have returned the favour by introducing several customers to Shivalik Bank. Whatever I am today is courtesy of Shivalik Bank.

Sabse acchi baat hai unki accessibility – and I’m not just talking geographically here, but behaviourally as well.

Sachin Singhal, 35 Jawahar Park, Saharanpur

When I was a child, I was often told tales of unscrupulous moneylenders (saahukars) and the lengths they would go to get their money back.

Par jaye toh jayen kahaan? Hume koi udhaar dega bhi toh kaun?

We were a small community of like-minded people trying to set up small businesses. That’s when my friend informed me of Shivalik Bank. Their minimal interest meant that my search ended there. We applied for a loan for C5 lac and it was processed instantaneously.

Thanks to Shivalik Bank, we have successfully set up numerous tailoring shops, dairy farms and bangle shops.

Jitna waajib byaaz hota hai ab utna hi dena padta hai.

Mamta Rani, Saibaba Group, Microfinance, Saharanpur


Financial inclusion is at the core of our philosophy and Shivalik Bank is steadfast in propagating financial literacy and utilizing digital technologies to drive growth. Mr. Yashvir Kumar Gupta,

Chairman

Chairman’s Message

India is on the cusp of becoming a major economy of the world. It has earned the position as the fastest growing economy

in the world, and has the demography and policy support to sustain growth. India’s banking sector has been historically under-penetrated, but over the course of the previous three years, India has taken massive strides towards financial inclusion. The Global Microscope report 2016 assesses the regulatory environment in countries across 12 indicators which assess financial inclusion. India has made a significant jump, climbing seven spots on the index to rank third among the 55 countries indexed, tying with the Philippines.

Growth was primarily driven by the Pradhan Mantri Jan Dhan Yojana, managing to open accounts for 300 million people by August 2017. The RBI further strengthened the payment system by launching the Unified Payment Interface (UPI), facilitating digital money transfers.

Our strong presence in Tier 2 and semi-urban regions represents an attractive opportunity for providing banking facilities to the masses. We sincerely believe that as a co-operative bank, we are better equipped to cater to the grassroots transformation than other banking formats.

We have in depth knowledge of the customer needs and perception at the

grassroots level, which significantly puts us at an advantage in addressing the demand and achieve greater financial inclusion.

As with any co-operative bank, we take decisions based on knowledge and data closer to ground realities, which allows us to tailor products and services to customer needs. Meanwhile, our ability to know customers and build relationships with them provides a critical advantage: lowering the risk and vulnerability to loan defaults.

At Shivalik, we also partner with various agencies to train customers about good practices and financial discipline to raise productivity. These form the foundation of our efforts to achieve faster-than-market growth and inclusion.

Over the years, we have been steadily investing in technology with the aim of leveraging IT tools and applications to strengthen our business, enhance efficiencies, lower costs and provide the best possible service to all our customers. We are among the first to offer cloud-based NEFT/RTGS service, Cash Deposit Machines, Micro ATMs, effectively lowering costs. For us, technology is not just to be profitable, but to have the ability to scale our business at a fast rate in line with an expanding customer base. Our technology investments also allow us to reduce errors, track operational metrics effectively and

reduce turnaround time.

We sincerely believe a combination of digitization and financial education can effectively address India’s last mile of customers.

Technology meets customer serviceAt Shivalik, we have invested in technology to make lives easier.

What truly wins customers and ensures they keep coming back is good customer service.

We extended the working hours from 10am to 4pm from Monday to Saturday. Additionally, all our branches offer uninterrupted service by staggering lunch/tea breaks. In the event of late customers, we also entertain banking requests post business hours.

Dedicated help desks, enquiry counters, senior citizen counters, digital banking counters and microfinance counters provide our customers specific touch points for all their needs. The Bank has allotted specific days and timings for microfinance customers to assist them exclusively.

The Bank hired women staff extensively in line with our focus on extending banking services to women customers and various


microfinance programmes which are women-centric. Additionally, all flyers, notifications, and promotions were printed in English as well as in Hindi. This was done to ensure that we were serving customers at both ends of the spectrum and to strength the regional position of the bank.

Passbook printing machines, currency counters and sorting machines are made available at every branch to aid smooth operations and added convenience. A pilot deployment of Bulk Note Acceptors has been undertaken at certain branches to save time in processing heavy cash volumes. Centralisation of cheque book printing at Head Office began with NCR cluster with the aim of ultimately doing it for the entire bank.

Shivalik Bank offers free SMS alerts to all customers to keep them aware of account related activities. Stamp Papers

are made available at all branches for loan documentation. Home/Phone banking is offered to customers, which helps women and senior citizens have easier access to banking.

We actively encourage and educate our customers to use digital channels of banking such as Net Banking, SMS and Mobile Banking to make them self-sufficient and lowering dependence on branches. In case of any customer complaints, we offer the service of sending a message (‘unhappy’) to a designated number, which is monitored by the head office and an officer contacts the customer within 24 hours to resolve their issue. We also offer hassle-free e-KYC through biometric authentication.

A weekly dashboard of customer complaints is maintained and circulated

1,476Business Size

as on 31st March, 2017 (in C Crores)

52.58CAGR over five years

(%)

44.07CAGR over five years

(%)

17.63Operating Profit

2016-2017 (in C Crores)

Total business grew by 4.3% to C1476.48 Crores (C916.97 Crores in deposits, C559.51 Crores in advances) in 2016-17 compared to 1411.82 Crores in 2015-16

Operating profit grew by 16.83% from C15.09 Crores in 2015-16 to C17.63 Crores in 2016 17.

Investments increased by 32.72% from C184.8 Crores in 2015 16 to C245.28 Crores in 2016-17.

Net NPA was 1.35% in 2016-17, well below the sectoral average.

The results in numbers and influence

among the senior management team to keep them aware of the progress and resolution of all customer complaints.

Demonetisation On 8 November 2016, the Government of India announced the demonetisation of all C500 and C1,000 banknotes in circulation. The intent was to curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.

The measures Shivalik Bank undertook to ease the challenges faced during this phase are listed below:

Actively educated all the customers of the updated RBI guidelines

Encouraged e-KYC based account opening and electronic banking to reduce reliance on physical cash

Dedicated counters were set up for exchange and issue of new currency

Introduced token systems to keep waiting customers aware of their wait time

Bank staff worked extra hours to ensure proper customer service

Increased focus on digital banking by encouraging customers to adopt debit cards and net banking

All the measures that we have undertaken offer the best of digitisation as well as the element of human connect across each and every branch, which has built credibility and faith in our name. We are optimistic of our prospects into scaling our co-operative model into a commercial model, while growing together with our customers.

Yashvir Kumar Gupta, Chairman


Report of the Board of Directors

We, on behalf of the Board of Directors are privileged to present the 20th Annual Report on the business and operations of Shivalik Mercantile Co-operative Bank Limited, and its audited financial statements for the year ended 31st March, 2017.

In India, financial inclusion has always been a challenge, both on the consumer’s and the institution’s side. Almost one-fourth of the country’s population is illiterate and below the poverty line, which already presents a tough challenge in ensuring inclusion for these sections. Besides this, there is the underlying risk of fraud, where unscruplous individuals take advantage of people who face challenges due to illiteracy. At Shivalik Bank, having a grassroots-level understanding of the requirements of the people and difficulties they face places us at an advantage, with opportunities in deposits, advances and non-interest income.

During the year under review, the total business grew from C1411.82 Crores to C1476.48 Crores. This growth reflects across the spectrum, with deposits increasing by 13.34% to C916.97 Crores. Our gross NPAs stood at 2.29% which is well below the industry average.

Our prime focus has always been the conversion of small deposits into CASA deposits, and we are proud to announce that CASA deposits as a proportion of total deposits stood at 36.29%, the second straight year of consecutive growth.

The surprise demonetisation initiative by the Government created new challenges within the industry and it led to an inherent credit weakness in the economy. Challenges notwithstanding, the bank’s advances moderated to C559.51 Crores during 2016-17 and the net worth of the Bank increased to C65.69 Crores at the close of the year. With a strong focus on our vision, we increased the proportion of sub C25 lakh loans by 4.14%, to C297.16 Crores in 2016-17.

Besides catering to the needs of smaller loans, this helped us meet the norms set by the RBI in terms of lending to the priority sector. The total credit extended to the priority sector stood at C252.99 Crores. The bank also increased its Gold Loan Portfolio from C18.05 Crores to C21.95 Crores.

Lending to microfinance moderated by 11.68% in 2016-17 as compared to the previous year. NPAs stood at C12.81 Crores; with gross and net NPAs at 2.29% and 1.35% respectively much below the RBI mandated level of 7% and 3% respectively. Business per employee moderated by 36.57% from C5.51 Crores to C3.26 Crores in 2016-17. The capital adequacy ratio was consistently above the RBI mandate, at 15.07% for the year under review.

The Capital to Risk Assets Ratio of the Bank was 15.07%. The credit-deposit ratio was 61.02% in 2016-17. The Board of Directors have proposed a dividend of C9 per share.


OperationsHighlights 2016–2017

Initiated centralised cheque book printing for NCR cluster

Standardised physical & e-registers, key handling policy and branch stationary for smooth functioning of branches

Ensured smooth functioning of branches in-line with the RBI regulations issued during demonetization

Tied up with various POS vendors to offer increased digital payment options to our customers

Contributed significantly towards digital and paperless banking through the use of various functions on the mATM

Provided a single point of contact to branches for resolution of day-to-day queries

Rolled out revised account opening forms for various products

Successfully rolled out e-KYC

Internal AuditHighlights 2016–2017

Risk based audit guidelines compiled for concurrent and internal audits

Detailed evaluation and review of the quality of audit reports submitted by auditors

Fortnightly review process established with the audit team to ensure resolution of high risk areas on priority

Regular interaction with Credit and Operations teams to discuss and rectify process gaps identified by the audit team

Demonetization Audit undertaken in all the branches covering the various RBI guidelines issued from time to time.

Gold Loan Audit brought within the ambit of internal audit, leading to a more systematic approach for risks associated with these loans

Forex Audit introduced in the designated foreign exchange dealing branches, covering all the Forex transactions executed in the branches.

Special KYC audits conducted at branches to ensure adherence to prescribed KYC norms.

Human Resources and TrainingHighlights 2016–2017

Hiring of functional and vertical heads keeping in account the expansion plan

Completed recruitment for centralized account opening and credit appraisal functions

Set up an insurance sales channel

Improved gender diversity by increasing women recruitment from 4% to 7% of total workforce.

Introduced ‘town halls’ enhancing interaction between base line employees and the senior management

Enhanced on the job training at every level for new joinees

Over 80 face-to-face and telephonic trainings conducted for various levels of staff

Initiated training & assessment on various modules through Learning Management System

IT and Digital Banking initiativesHighlights 2016–2017

Initiated AADHAAR seeding via Net Banking

Launched Self Help Group account opening through micro ATM

Initiated non-financial transactions via Daily Deposit Scheme (DDS) card

Launched account opening via Micro ATMs

Successfully implemented e-KYC

Initiated replacement plan of normal debit cards with EMV chip debit cards in-line with RBI regulations.

Focused on moving customers to digital channels including Net Banking, ATM, CDM, and SMS Banking.

Launched e-commerce transactions for debit card holders

Went live on IMPS

Customer serviceHighlights 2016–2017 Increased focus on lobby management

to reduce queues and improve customer experience

Imparted soft-skills training to front line executives for better communication with customers

Ran a sensitisation programme for security guards to be polite and guide customers to front desk executives

Branches have been advised to entertain inter branch customers enthusiastically

Increased hiring of women employees in branches to cater to women customers

MarketingHighlights 2016–2017

Launched an instructional video for accepting daily deposits via micro ATM for employees and daily deposit agents

Re-designed canopy and branch signages

Installed new notice boards in the branches and ATMs

Special initiative “Compliance mein chalta nahi hai!” to improve compliance

Launched bank’s social media presence on Facebook, Twitter and LinkedIn

Redesigned the bank’s website to be more customer friendly

Initiated campaigns to increase awareness about digital banking

453Total employees

10.65%Increase in women

recruits


Corporate Governance Report

Corporate Governance is essentially a set of standards, systems, and procedures aimed at effective, honest and transparent management of a Bank within the applicable statutory and regulatory structures. The Corporate Governance framework at Shivalik Bank takes into account the relevant statutory provisions of the Banking Regulations Act, 1949 (AACS), Multi State Co-operative Societies Act, 2002 and Reserve Bank of India (RBI) directives and guidelines.

Corporate Governance has always been an important and non-negotiable pillar of Shivalik’s decision making ethos and remains instrumental so that the bank is able to execute on its strategy and vision in an ethical and responsible manner ensuring fairness to all stakeholders. The bank has continued to make improvements to its corporate governance framework by implementing the best practices applicable to larger organisations as it continues to expand its business.

The following principles are embedded in our governance framework:

Strategic and critical review of the past, current and future performance of the bank by the Board of Directors and its sub-committees.

Transparent approach to decision making by Executive Management and Board.

A sound system of internal controls to mitigate and monitor internal and external risks.

Accuracy and transparency in disclosures to all stakeholders for all

material information.

Compliance of laws, rules and regulations in true letter and spirit.

1. Board of Directors1.1 Composition

The Bank is managed by the Board of Directors, which formulates strategies, policies and reviews performance periodically. The composition and election of the Board of Bank is governed by the Multi-State Co-operative Societies Act, 2002 and the Bye-Laws of the Bank. As per the Bye-Laws of the Bank, the maximum strength of the Board of Directors shall be twelve directors including two co-opted directors. The Board of Directors are elected by the members of the Bank and tenure of Board of Directors is five years from the date of their appointment. The tenure of the Board of Directors for the year 2011 to 2016 ended in the month of February 2016. Election for the appointment of the new Board of Directors for the year 2016-2021 was held on February 14, 2016 under the supervision of Mr Anil Kumar, who had been appointed as a Returning Officer. As on 31st March, 2017, the Board of Directors comprised of 11 members (10 Elected and 1 Co-opted Directors) in addition to MD & CEO. The Board includes eminent persons including a Chartered Accountant having professional expertise in management, finance, accountancy and audit systems. The MD & CEO is the ex-officio member of all the Committees of the Board.

Responsibility for day-to-day management of the Bank is entrusted with senior management personnel under the


leadership of the MD & CEO who operates under the guidance and control of the Board. The Board is responsible for reviewing the performance of the bank including steps taken by senior management and approving future strategic vision with the aim of enhancing stakeholder value.

1.2 Chairman of the BoardMr. Yashvir Kumar Gupta, a graduate in Mechanical Electrical Engineering from IIT – BHU, is the Chairman of the Board, and has been at the helm of Shivalik Bank since 1998 turning what was then a small start-up bank into close to a C1,500 Crore business with a presence in two states having 21 branches as on 31st March, 2017 which is due to expand to 31 branches in the next 12 months based on fresh branch approvals received from the RBI. He has a rich experience of close to five decades in the field of trading, agri-business and banking industry and worked at Hindustan Aeronautics Limited (HAL) prior to taking on entrepreneurial ventures. Troubled by the poor quality of customer service in nationalized banks at that time, he set up Shivalik Mercantile Co-operative Bank Limited in 1998 to provide a rich and delightful banking experience to customers.

1.3 Roles & Responsibilities of Board of DirectorsThe primary responsibility for good corporate governance of the Bank rests with its Board of Directors. The Board has been entrusted by the shareholders with the responsibility of overall direction, supervision and control of the Bank. The Board’s fiduciary responsibility to

the shareholders requires that the Board should act in its shared corporate interest, in good faith, and with due diligence. At the same time, the Board should recognise and take into account the interests of other stakeholders in the Bank, such as depositors, other creditors, employees, the government, and the community in which it functions.

The bank has also successfully moved an amendment in its bye laws to conduct board meetings over video and/or audio conference which increases the efficiency of the boards operations and reduces logistical expenditure.

In addition to the Multi State Co-operative Societies Act, 2002 read with MSCS Rules, 2002 and Bye-Laws of the Bank, Master Circular on Board of Directors for Urban Co-operative Banks (UCBs) issued by Reserve Bank of India also apply to the Board of Directors of the Bank mutatis mutandis.

1.4 Board Meetings During 1st April, 2016 to 31st March, 2017, Nine Board meetings were held to drive strategic decision making and performance review. The board also approved a comprehensive related party transaction policy during one of these meetings thereby further strengthening the corporate governance framework.

Except Mr. Yashvir Kumar Gupta, Chairman, Dr. Sanjeev Mittal, Director and Mr. Suveer Kumar Gupta, MD & CEO of the Bank, no other directors are related to each other.

Directors’ RemunerationShivalik Bank does not remunerate its

Directors. However, expenses related to travelling and lodging are borne by the Bank for attending Board/Committee meetings. MD & CEO is an employee of the bank and the remuneration paid to him is disclosed as a part of mandatory disclosures each year.

2.0 Board Committees The Bank has the following Committees of the Board of Directors:

Audit Committee Of Board (ACB)In order to ensure and enhance the effectiveness of internal audit/inspection as a management tool, an Apex Audit Committee of Board has been set up at the board level for overseeing and providing directions to the internal audit/inspection machinery and other executives of the bank.

CompositionThe Committee is headed by Mr. Yashvir Kumar Gupta, Chairman of the Bank. All members of the Committee have requisite financial and management experience including a Chartered Accountant. General Manager (Risk Management) and Audit Controller of the Bank are the permanent invitees. Other members of management and representatives of statutory auditors are also invited to attend and participate in the meetings, whenever required. The MD & CEO of the Bank acts as the Secretary to the Committee.

Audit Committee of Board (ACB) MeetingsDuring 1st April, 2016 to 31st March, 2017, Four meetings of Audit Committee of Board were held where the outcomes of

The Bank is managed by the Board of Directors, which formulates strategies, policies and reviews performance periodically. The composition and election of the Board is governed by the Multi-State Co-operative Societies Act, 2002 and the Bye-Laws of the Bank. As per the Bye-Laws of the Bank, the maximum strength of the Board of Directors shall be twelve directors including two co-opted directors.


the audits conducted by the internal audit team and external agencies were discussed.

Board Loan & Share Committee This Committee has been constituted by merging existing Share Allotment Committee and the Board Loan Committee (management committee) and rechristened as Board Loan Share Committee of Board of Directors of the Bank with effect from February 14, 2016.

The major functions will be:

a) To ensure the compliance of Loan Policy approved by the Board;

b) To consider, approve and sanction all the loan proposals;

c) To form different committees of bank functionaries and delegate loan sanctioning powers to them;

d) To consider and approve the waiver and settlement cases of all kind;

e) To approve applications for new membership (Regular and Nominal) for both borrowers and non-borrowers;

f ) To allot shares to new as well as existing members;

g) To approve share refunds and transfers.

Members comprise of Mr. Yashvir Kumar Gupta, who is also the Chairman of this

Committee, Mr. S P Gulati, Director, Mr. Sarvesh Singhal, Director and Mr. Suveer Kumar Gupta, MD & CEO of the Bank are the members of the Committee. Credit (Head), Credit Manager and GM (Risk Management) of the Bank are permanent Invitees.

Board Loan & Share Committee MeetingsTwenty Eight meetings of the above Committee were held during Financial Year 2016-17.

Special Committee of the Board for Monitoring Large Value fraudsThe RBI mandates constitution of a Board Committee exclusively dedicated to the monitoring of large value fraud cases including detection procedures, reporting to regulatory and enforcement agencies and action against the perpetrators of the frauds at the highest level. This committee monitors all cases of fraud with a direct financial impact of C1 Crore and above and includes five members of the Board of Directors including Chairman, two members from ACB. No meetings were held during the financial year 2016-17 as the meetings are held as and when required.

Nomination & Human Resource Committee (NHRC)This committee was constituted on November 6, 2015 to consider policies related to human resource development. The terms of reference include consideration of all issues/areas concerning Human Resource Planning & Management, all HR Policies and initiatives. The composition of the Committee includes 3 members of Board including MD & CEO. General Manager (HR & Marketing), General Manager (Risk Management) and HR Head are the permanent Invitees.

Two meetings of the NHRC were held during financial year 2016-17.

2.1 Other Functional CommitteesApart from the above, the Board has delegated its power to MD & CEO of the Bank to constitute such Functional Committees with specific terms of reference as it may deem fit from time to time. These include the following:

1) Asset Liability Committee (ALCO)

2) Investment Committee

3) KYC and AML Committee

4) Purchase and Expenditure Committee

5) IT Change Request Committee

6) IT Vision Committee

Annual General Meetings and Special General MeetingsLocation, date and time of the AGMs held during the preceding 3 years are as under:

Year Location Date Time (IST)

2013-14 Hotel Oasis, Delhi Road, Saharanpur – 247001, Uttar Pradesh Sunday, August 24, 2014 10:00 AM

2014-15 Hotel Royal Residency, Ambala Road, Saharanpur – 247001, Uttar Pradesh

Sunday, September 27, 2015 10:00 AM

2015-16 Hotel Royal Residency, Ambala Road, Saharanpur – 247001, Uttar Pradesh

Sunday, September 18, 2016 10:00 AM

During the Financial Year 2016-17, two Special General Meetings were held on May 8, 2016 and March 5, 2017 to transact and approve the Merger proposal of the R. S. Co-operative Bank Limited, Mumbai and amendment to the Reserve Fund Clause of the Bye – Laws of the Bank respectively.


Shivalik Mercantile Co-operative Bank (SMCB) is a pioneer in the co-operative sector focusing on financial inclusion. The Bank started micro-finance to self-help groups (SHGs). All members of these groups are women, belonging to the marginalized sector.

Over the past few years, the bank has connected more than 7000 SHGs comprising approximately 95,000 individuals to its micro-finance program. Total loan outstanding to SHGs was B31.66 Crores as on 31st March, 2017.

Key initiatives during the year under review:1) Paperless account opening: Under this

initiative, SMCB unified and digitised its account opening procedure and initiated steps towards becoming totally paperless. This has an environmental impact through paper saving and making the entire procedure more efficient.

2) SMCB also launched a novel ‘Bank At Your Doorstep’ concept. Under this model, representatives reach customers at their doorstep for banking needs such as AEPS ON US/OFF US, pin pad services through the already successful mATM,

which offers unrivalled convenience to the rural population. Additionally representatives also assist in financial and digital literacy.

Salient features of mATMs are: Real time e-KYC driven (biometric

authentication) account opening

Risk mitigation through digital record keeping - use of biometric attendance marking and real-time recognition of payment ledgers

mATMs have ability to process card, biometric transactions and are insured against theft and can be remotely de-activated

Extensive use of AEPS ON US/OFF US services at door step for customers.

Shivalik Bank has developed three models to reach women in India’s economic last mile: Branch led model: In this model,

a branch is set up at each block headquarter and an NGO works with the bank as a Business Correspondent (BC) for extension services like formation and nurturing of SHG. mATMs have been made available to field staff for account

opening and all cash transactions of groups and its members.

Branch, BC and ATM/CDM model: In this model, the branch of the bank is located at district head quarter (HQ) and a BC office is located at block HQ with ATM and CDM. mATMs have been made available to field staff for account opening and cash transactions of groups and members. This model has been implemented at Meerut and Dhar and ATM and CDM will be installed after necessary approvals from the RBI. There are over 3,000 SHGs in Meerut and over 350 in Dhar.

Mini SHG model for urban areas: This is a new model where SHGs comprising 5-6 members are formed in urban areas. mATMs have been made available to field staff for account opening and cash transactions of groups and members. This model has been implemented at Noida and Indore. About 200 SHGs have been formed under this model so far. Looking at the success of the above model it has been decided to implement this model in rural areas as well.

Financial Inclusion: Microfinance

Key financial metrics

No. of Groups formed in 2016-17

Dhar 11

Meerut 88

Saharanpur 118

Gautam Budh Nagar 211

Indore 66

6671Total Groups that received

lending

7823Total Groups

31.66 crLoans

outstanding under micro-

finance

As on 31st March 2017


REPORT ON THE FINANCIAL STATEMENTS 1. We have audited the accompanying financial statements of

M/s SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD, having

registered office at Ansari Road, Saharanpur-247001 which

comprise the Balance Sheet as at 31st March, 2017, Profit and

Loss Account for the year ended on 31st March 2017 and

other explanatory information incorporated in these financials

statements of the Bank.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS 2. Management of the Bank is responsible for the preparation of

these financial statements in accordance with the provisions of

section 29 of the Banking Regulation Act, 1949 and Multi State

Co-operative Societies Act, 2002 and the rules made there

under that give a true and fair view of the financial position

and financial statements of the Bank in accordance with the

Accounting Standards issued by the Institute of Chartered

Accountants of India. This responsibility includes the design,

implementation and maintenance of internal control relevant

to the preparation and presentation of the financial statements

that give a true and fair view and are free from material

misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY 3. Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with the Standards on Auditing issued by the

Institute of Chartered Accountants of India. Those Standards

require that we comply with ethical requirements and plan

and perform the audit to obtain reasonable assurance about

whether the financial statements are free from material

misstatement.

4. An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s

judgement, including the assessment of the risk of material

misstatement of the financial statements, whether due to fraud

or error. In making those risk assessments, the auditor considers

internal control relevant to the Bank’s preparation and fair

presentation of the financial statements in order to design

audit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on the

effectiveness of the Bank’s internal control. An audit also

includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of

the financial statements.

OPINION5. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion.

6. In our opinion and to the best of our information and according

to the explanations given to us, the financial statements

subject to our comments and observations contained in Audit

Memorandum, give the information so required and give a

true and fair view in conformity with the accounting principles

generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of

the Bank as at 31st March, 2017;

(b) In the case of the Profit and Loss Account, of the profit for

the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 7. The Balance Sheets and profit and loss accounts have been

drawn up in accordance with the provisions of section 29 of

the Banking Regulation Act, 1949 and Multi State Co-operative

Societies act, 2002 and the rules made there under.

INDEPENDENT AUDITOR’S REPORT

To

The Members

SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD.

FINANCIAL REPORT


8. We report that:

a. We have obtained all the information and explanations

which to the best of our knowledge and belief were

necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law

have been kept by the Bank so far as appears from our

examination of those books and proper returns adequate

for the purpose of our audit have been received from the

branches not visited by us;

c. The Balance Sheet, the Profit and Loss Account dealt with

by this report are in agreement with the books of account

and returns;

d. In our opinion and according to information given to us,

there has been no material impropriety or irregularity in

the expenditure or in the realisation of money due to the

bank;

e. In our opinion and according to information given to us,

the transactions of the Bank, which have come to our

notice, have been within the competence of the Bank.

Audit Memorandum-NIL

For M R S & CO. Chartered Accountants

Firm Registration Number: 016610N

Ram Kumar Dhiman Partner

Membership No. 096852

Place: Saharanpur

Date: 3rd May, 2017


(Amount in H)

Schedule Current Year31.03.2017

Previous Year31.03.2016

CAPITAL & LIABILITIES

(1) CAPITAL 1 45,10,10,000.00 43,89,00,200.00

(2) RESERVE FUND & OTHER RESERVES 2 19,93,75,077.00 12,82,90,413.18

(3) DEPOSITS & OTHER ACCOUNTS 3 9,16,96,71,965.98 8,09,05,66,451.30

(4) BORROWINGS - - -

(5) BILLS FOR COLLECTION BEING BILLS RECEIVABLE AS PER CONTRA - - 39,32,931.31

(6) BRANCH ADJUSTMENTS - - -

(7) OVERDUE INTEREST RESERVES (ON NPA) - 2,84,27,802.38 1,18,33,778.61

(8) INTEREST PAYABLE (ON TERM DEPOSITS) - 22,09,068.48 39,65,537.32

(9) OTHER LIABILITIES & PROVISIONS 4 17,49,42,293.48 14,11,06,825.44

(10) PROFIT & LOSS 5 6,75,11,917.33 7,46,53,420.71

GRAND TOTAL 10,09,31,48,124.65 8,89,32,49,557.87

CONTINGENT LIABILITIES - 44,33,600.00 51,60,800.00

PROPERTY & ASSETS

(1) CASH IN HAND & BALANCE WITH RBI - 23,04,95,182.71 9,29,20,404.66

(2) BALANCES WITH OTHER BANKS 6 98,93,23,086.61 50,13,25,666.01

(3) MONEY AT CALL & SHORT NOTICE - 52,00,00,000.00 15,00,69,041.00

(4) INVESTMENTS 7 2,45,28,37,990.00 1,84,79,82,944.00

(5) ADVANCES 8 5,59,50,64,050.85 6,02,22,31,442.27

(6) INTEREST RECEIVABLE 9 10,36,01,697.58 11,68,85,480.81

OF WHICH OVERDUE (ON NPA) 2,84,27,802.38 1,18,33,778.61

(7) BILLS RECEIVABLE BEING BILLS FOR COLLECTION AS PER CONTRA - - 39,32,931.31

(8) FIXED ASSETS LESS DEPRECIATION 10 7,95,30,623.27 6,47,79,858.79

(9) OTHER ASSETS 11 12,22,95,493.63 9,31,21,789.02

GRAND TOTAL 10,09,31,48,124.65 8,89,32,49,557.87

Balance Sheet as at 31st March 2017

As per our report of even date attached

For M R S & Co. Sd/- Sd/-

Chartered Accountants Suveer Kumar Gupta Sarvesh Singhal(Firm Regn. No. 016610N) MD & CEO DIRECTOR

Sd/- Sd/- Sd/- Sd/-

Ram Kumar Dhiman Sudhakar Agarwal Shiv Puran Gulati Yashvir Kumar GuptaPartner (M. No. 096852) DIRECTOR VICE CHAIRMAN CHAIRMAN

Saharanpur: 3rd May, 2017

FINANCIAL REPORT


(Amount in H)

Current Year31.03.2017


EXPENDITURE

(1) INTEREST ON DEPOSITS, BORROWINGS ETC.

i) INTEREST ON DEPOSITS 61,60,56,805.28 61,77,35,146.31

ii) INTEREST ON BORROWINGS 18,82,599.00 32,46,312.00

TOTAL 61,79,39,404.28 62,09,81,458.31

(2) SALARIES, ALLOWANCES, PROVIDENT FUND, BONUS & GRATUITY ETC. 14,23,15,416.79 10,29,19,871.76

(3) RENT, TAXES, INSURANCE, LIGHTING ETC.

i) BUILDING RENT 1,97,34,269.80 1,49,18,555.68

ii) TAXES 37,15,060.69 50,87,162.36

iii) INSURANCE 1,11,74,722.83 97,59,606.19

iv) LIGHTING 78,67,856.14 71,26,674.41

TOTAL 4,24,91,909.46 3,68,91,998.64

(4) LAW CHARGES 26,47,831.00 5,24,625.00

(5) POSTAGE AND TELEPHONE CHARGES

i) POSTAGE 8,02,267.74 4,45,980.68

ii) TELEPHONE 17,23,792.40 13,13,814.24

iii) COMPUTER NETWORKING, CONNECTIVITY & HOSTAGE 94,76,321.00 79,95,284.00

TOTAL 1,20,02,381.14 97,55,078.92

(6) AUDIT & CONSULTANCY FEES 3,04,53,445.94 3,13,36,774.21

(7) DEPRECIATION AND REPAIRS

i) DEPRECIATION 1,54,36,702.00 1,13,60,604.00

ii) WRITTEN OFF/ IMPAIRED ASSETS - -

iii) REPAIRS 90,12,343.17 55,32,603.34

TOTAL 2,44,49,045.17 1,68,93,207.34

(8) STATIONERY, PRINTING AND ADVERTISEMENT

i) PRINTING & STATIONERY 33,15,876.88 40,13,687.81

ii) ADVERTISEMENT 22,16,048.50 24,40,816.00

TOTAL 55,31,925.38 64,54,503.81

Contd…

Statement of Profit & Loss for the year ended 31st March 2017


Contd… from previous page (Amount in H)



EXPENDITURE

(9) OTHER EXPENDITURE

i) SUBSCRIPTION 43,22,160.28 11,50,753.12

ii) TRAINING & DEVELOPMENT OF STAFF 5,18,936.00 46,193.00

iii) AGM & CONFERENCE 11,41,543.72 8,02,068.00

iv) SECURITY 53,17,408.57 34,50,050.19

v) BUSINESS PROMOTION & GIFTS 8,89,174.75 5,10,187.00

vi) STAFF WELFARE 23,81,909.38 25,38,780.77

vii) TRAVEL & TRANSPORT 81,72,100.90 43,79,533.01

viii) COMMISSION ON DAILY DEPOSIT/DSA 42,78,747.36 20,54,595.50

ix) BANKING CORRESPONDENT EXPENDITURE 16,41,122.64 39,67,423.44

x) CHARGES PAID TO OTHER BANKS 10,35,392.44 6,64,207.98

xi) AMORTIZATION ON INVESTMENTS 44,76,455.00 28,93,498.00

xii) INTEREST & PENALTIES 11.00 1,01,860.16

xiii) PROVISION ON STANDARD ASSETS 7,73,361.82 41,16,090.18

xiv) MISCELLANEOUS EXPENSES 7,89,083.26 6,61,487.53

TOTAL 3,57,37,407.12 2,73,36,727.88

(10) LOSS FROM SALE OF NON-BANKING ASSETS - -

(11) PROVISIONS FOR CURRENT YEAR

i) PROVISION FOR BAD & DOUBTFUL DEBTS (NPA) 1,30,96,568.58 2,13,46,315.22

ii) SPECIAL RESERVE U/S 36(1)(viii) OF INCOME TAX ACT 37,63,448.00 38,92,979.00

iii) PROVISION FOR CURRENT INCOME TAX 5,37,40,458.00 4,51,68,430.00

iv) PROVISION FOR DEFERRED TAX 19,60,851.00 13,81,999.00

iv) IDR 19,98,100.00 -

TOTAL 7,45,59,425.58 7,17,89,723.22

PRIOR PERIOD ADJUSTMENTS

i) PRIOR PERIOD EXPENSES 1,889.00 2,57,929.00

ii) ADUSTMENT FOR INCOME TAX 54,535.00 (14,52,740.00)

iii) ADJUSTMENT FOR DEFERRED TAX 6,74,578.00 27,15,134.00

7,31,002.00 15,20,323.00

(12) BALANCE OF PROFIT 10,02,57,719.12 7,34,70,706.92

GRAND TOTAL 1,08,91,16,912.98 99,98,74,999.01

EXPLANATORY NOTE:

TRANSFERRED TO INVESTMENT FLUCTUATION RESERVE - -

Contd…


FINANCIAL REPORT


Contd… from previous page (Amount in H)



INCOME

(1) INTEREST & DISCOUNT

i) INTEREST ON LOANS & ADVANCES 73,22,77,975.01 76,07,93,870.50

ii) INTEREST ON INVESTMENTS 21,60,40,801.13 16,89,26,358.82

iii) INCOME ON INVESTMENT IN MUTUAL FUNDS 6,01,48,014.70 2,00,25,075.37

TOTAL 1,00,84,66,790.84 94,97,45,304.69

(2) COMMISSION, EXCHANGE & BROKERAGE 11,02,106.31 9,91,987.58

(3) PROFIT FROM SALE OF NON-BANKING ASSETS 1,940.00 -

(4) PROFIT ON SALE OF SECURITIES 3,31,04,689.00 60,31,907.00

(5) OTHER RECEIPTS

i) LOAN PROCESSING CHARGES 1,12,06,571.83 1,95,94,806.24

ii) INCIDENTAL CHARGES 60,27,103.98 17,70,294.33

iii) LOCKER RENT 41,10,101.84 25,88,021.23

iv) DIVIDEND FROM MUTUAL FUNDS - -

v) BAD DEBTS RECOVERED 2,00,000.00 7,30,000.00

vi) COMMISSION FROM INSURANCE BUSINESS 60,74,805.85 17,01,198.29

vii) MISCELLANEOUS INCOME 1,88,22,803.33 1,67,21,479.65

TOTAL 4,64,41,386.83 4,31,05,799.74

GRAND TOTAL 1,08,91,16,912.98 99,98,74,999.01

EXPLANATORY NOTE:

CONTINGENT PROV. AGAINST DEPRECIATION IN INVESTMENTS





Sd/- Sd/- Sd/- Sd/-




SCHEDULE 1: CAPITAL (Amount in H)



i) AUTHORIZED CAPITAL 1,00,00,00,000.00 1,00,00,00,000.00 1,00,00,000 shares of H100/- eachii) SUBSCRIBED CAPITAL 45,10,10,000.00 43,89,00,200.00 45,10,100 shares of H100/- each (Previous Year 43,89,002 Shares of H100/- each)iii) AMOUNT CALLED UP 45,10,10,000.00 43,89,00,200.00

On 45,10,100 shares at H100/- eachOf (iii) above, held by(a) Individuals & Others 45,10,10,000.00 43,89,00,200.00 (b) Co-operative institutions - -

(c) Government - -

SCHEDULE 2: RESERVE FUND & OTHER RESERVES (Amount in H)



i) STATUTORY RESERVE 11,04,11,246.00 6,66,38,425.00 ii) INVESTMENT FLUCTUATION RESERVE 2,17,45,918.00 1,63,43,728.00 iii) OTHER FUNDS AND RESERVES

(a) SHARE TRANSFER FUND - - (b) PROVISION ON STANDARD ASSETS 1,73,67,852.00 1,65,94,490.18 (c) SPECIAL RESERVE U/S 36(1)(VIII) OF I.T. ACT 1,56,44,466.00 1,18,81,018.00 (d) CONTINGENCY RESERVE 3,42,05,595.00 1,68,32,752.00

TOTAL 6,72,17,913.00 4,53,08,260.18 GRAND TOTAL 19,93,75,077.00 12,82,90,413.18

SCHEDULE 3: DEPOSIT & OTHER ACCOUNTS (Amount in H)



i) FIXED DEPOSITSa) INDIVIDUALS & OTHERS 5,84,21,18,097.30 5,52,34,40,044.56 b) CENTRAL CO-OPERATIVE BANKS - - c) OTHER SOCIETIES - -

TOTAL 5,84,21,18,097.30 5,52,34,40,044.56 ii) SAVINGS BANK DEPOSIT

a) INDIVIDUALS & OTHERS 2,97,45,30,528.86 2,32,54,59,736.31 b) CENTRAL CO-OPERATIVE BANKS - - c) OTHER SOCIETIES - -

TOTAL 2,97,45,30,528.86 2,32,54,59,736.31 iii) CURRENT DEPOSITS

a) INDIVIDUALS & OTHERS 35,30,23,339.82 24,16,66,670.43 b) CENTRAL CO-OPERATIVE BANKS - - c) OTHER SOCIETIES - -

TOTAL 35,30,23,339.82 24,16,66,670.43 iv) MONEY AT CALL AND SHORT NOTICE - - GRAND TOTAL 9,16,96,71,965.98 8,09,05,66,451.30

Schedules to Balance Sheet as at 31st March 2017

FINANCIAL REPORT



SCHEDULE 4: OTHER LIABILITIES & PROVISIONS (Amount in H)



i) BILLS PAYABLE (DDs/POs ISSUED BUT NOT YET PRESENTED FOR PAYMENT) 1,75,95,048.52 1,61,87,097.08

ii) UNCLAIMED DIVIDENDS 36,18,019.00 33,22,636.00

iii) SUNDRIES 2,48,56,578.39 1,92,39,828.26

iv) PROVISION FOR INCOME TAX 5,37,40,458.00 4,51,68,430.00

v) DEFERRED TAX LIABILITY 80,64,433.00 54,29,004.00

vi) TAX DEDUCTED AT SOURCE 90,39,579.57 98,82,648.68

viii PROVISION FOR AUDIT FEES 3,15,000.00 2,61,250.00

ix) PROVISION FOR BAD & DOUBTFUL DEBTS (NPA) 5,30,00,000.00 3,99,03,431.42

x) PAID-UP CAPITAL (COLLECTION ACCOUNT) OF ERSTWHILE BHOJ NAGRIK SAHAKARI BANK LTD., DHAR & ERSTWHILE MALWA BANK, INDORE

17,12,500.00 17,12,500.00

xi) INVESTMENT DEPRECIATION RESERVE 19,98,100.00 -

xi) CO-OPERATIVE EDUCATION FUND 10,02,577.00 -

TOTAL 17,49,42,293.48 14,11,06,825.44

SCHEDULE 5: PROFIT & LOSS (Amount in H)



i) PROFIT AS PER LAST BALANCE-SHEET 7,46,53,420.71 4,06,77,851.79

ii) LESS: APPROPRIATIONS OF PROFIT FOR LAST YEAR

STATUTORY RESERVE 1,83,67,677.00 1,23,71,268.00

CO-OPERATIVE EDUCATION FUND 7,34,707.00 4,94,851.00

SHARE TRANSFER FUND - (50,00,000.00)

CONTINGENCY RESERVE 73,47,071.00 49,48,507.00

INVESTMENT FLUCTUATION RESERVE - 1,00,00,000.00

DIVIDEND @ 9% 3,94,54,798.50 1,66,70,512.00

SHARE CAPITAL OF BORROWERS/GUARANTORS OF ERSTWHILE MALWA BANK RECREATED - 10,000.00

TOTAL (6,59,04,253.50) (3,94,95,138.00)

iii) ADD: PROFIT OF THE YEAR B/F FROM P&L A/C 10,02,57,719.12 7,34,70,706.92

LESS PROPOSED APPROPRIATIONS:

STATUTORY RESERVE 2,50,64,430.00 -

CO-OPERATIVE EDUCATION FUND 10,02,577.00 -

CONTINGENCY RESERVE 1,00,25,772.00 -

INVESTMENT FLUCTUATION RESERVE 54,02,190.00 -

TOTAL (4,14,94,969.00) -

GRAND TOTAL 6,75,11,917.33 7,46,53,420.71


SCHEDULE 6: BALANCES WITH OTHER BANKS (Amount in H)



i) CURRENT DEPOSITS a) DISTRICT CO-OPERATIVE BANK LTD 3,28,32,279.25 4,77,77,211.43

b) SBI & SUBSIDIARY BANKS 1,75,82,537.08 2,16,39,858.77 c) OTHER PUBLIC SECTOR BANKS 13,26,73,056.43 14,07,40,227.98 d) OTHER SCHEDULED BANKS 43,35,213.85 39,68,367.83

TOTAL 18,74,23,086.61 21,41,25,666.01 ii) SAVINGS BANK DEPOSITS - -

iii) FIXED DEPOSITSa) DISTRICT CO-OPERATIVE BANK LTD. - - b) SBI & SUBSIDIARY BANKS 13,96,00,000.00 - c) OTHER PUBLIC SECTOR & SCHEDULED BANKS 66,23,00,000.00 28,72,00,000.00

TOTAL 80,19,00,000.00 28,72,00,000.00 GRAND TOTAL 98,93,23,086.61 50,13,25,666.01

SCHEDULE 7: INVESTMENTS (Amount in H)



i) IN CENTRAL & STATE GOVERNMENT SECURITIES 2,45,03,63,990.00 1,82,55,08,944.00 MARKET VALUE: 2,49,56,65,550.00 1,83,02,53,800.00

FACE VALUE: 2,40,25,00,000.00 1,80,50,00,000.00 ii) OTHER TRUSTEE SECURITIES - - iii) SHARES IN CO-OPERATIVE INSTITUTIONS 2,000.00 2,000.00 Iv) OTHER INVESTMENTS 24,72,000.00 2,24,72,000.00

GRAND TOTAL 2,45,28,37,990.00 1,84,79,82,944.00

SCHEDULE 8: ADVANCES (Amount in H)



i) SHORT TERM LOANS, CASH CREDITS OVERDRAFTS AND BILLS DISCOUNTED OF WHICH SECURED AGAINST:

2,43,34,11,160.72 2,93,19,29,299.61

a) GOVT. & OTHER APPROVED SECURITIES - - b) OTHER TANGIBLE SECURITIES 2,43,34,11,160.72 2,93,19,29,299.61 OF THE ADVANCES, AMT. DUE FROM INDIVIDUALS 2,43,34,11,160.72 2,93,19,29,299.61 OF THE ADVANCES, AMOUNT OVERDUE 64,63,223.24 4,22,65,266.50 CONSIDERED BAD & DOUBTFUL OF RECOVERY (FULLY PROVIDED FOR) 1,23,85,797.30 1,17,08,052.25

ii) MEDIUM TERM LOANS OF WHICH SECURED AGAINST 32,76,97,449.14 46,00,46,901.98 a) GOVT. & OTHER APPROVED SECURITIES - - b) OTHER TANGIBLE SECURITIES 32,76,97,449.14 46,00,46,901.98 OF THE ADVANCES, AMT. DUE FROM INDIVIDUALS 32,76,97,449.14 46,00,46,901.98 OF THE ADVANCES, AMOUNT OVERDUE 46,55,129.22 2,02,23,141.70 CONSIDERED BAD & DOUBTFUL OF RECOVERY (FULLY PROVIDED FOR) 90,74,125.74 39,48,558.66

iii) LONG TERM LOANS OF WHICH SECURED AGAINST 2,83,39,55,440.99 2,63,02,55,240.68 a) GOVT. & OTHER APPROVED SECURITIES - -

b) OTHER TANGIBLE SECURITIES 2,83,39,55,440.99 2,63,02,55,240.68 OF THE ADVANCES, AMT. DUE FROM INDIVIDUALS 2,83,39,55,440.99 2,63,02,55,240.68 OF THE ADVANCES, AMOUNT OVERDUE 1,62,45,381.88 1,36,79,077.11 CONSIDERED BAD & DOUBTFUL OF RECOVERY (FULLY PROVIDED FOR) - - GRAND TOTAL 5,59,50,64,050.85 6,02,22,31,442.27


FINANCIAL REPORT


SCHEDULE 9: INTEREST RECEIVABLE (Amount in H)



i) INTEREST RECEIVABLE ON INVESTMENTS (ACCRUED)

a) GOVERNMENT SECURITIES 4,30,06,845.00 3,19,28,288.00

b) BANK FDRs 3,16,02,179.20 7,28,34,768.20

c) OTHER INVESTMENTS 5,64,871.00 2,88,646.00

iI) INTEREST RECEIVABLE ON NPA (OVERDUE) 2,84,27,802.38 1,18,33,778.61

TOTAL 10,36,01,697.58 11,68,85,480.81

SCHEDULE 10: FIXED ASSETS (Amount in H)



AS ON 01.04.2016 6,47,79,858.79 6,27,51,311.00

ADDITIONS DURING THE YEAR 3,10,18,469.08 1,53,38,346.79

LESS: SALE/ADJUSTMENTS (8,31,002.60) (19,49,195.00)

LESS: DEPRECIATION FOR CURRENT YEAR (1,54,36,702.00) (1,13,60,604.00)

WRITTEN DOWN VALUE AS ON 31.03.2017 7,95,30,623.27 6,47,79,858.79

SCHEDULE 11: OTHER ASSETS (Amount in H)



i) REFUNDABLE SECURITIES 77,77,666.00 12,75,417.00

ii) STOCK OF PRINTED STATIONERY 11,33,430.29 11,63,560.67

iii) MISCELLANEOUS RECEIVABLES 3,52,83,148.34 2,95,89,234.35

iv) TAX DEDUCTED AT SOURCE 9,01,919.00 7,74,537.00

v) INCOME TAX REFUNDABLE 60,59,290.00 16,79,000.00

vi) ADVANCE INCOME TAX PAID 6,15,00,000.00 4,90,00,000.00

vii) NON-BANKING ASSETS ACQUIRED UNDER SARFAESI 96,40,040.00 96,40,040.00

TOTAL 12,22,95,493.63 9,31,21,789.02




Sd/- Sd/- Sd/- Sd/-





Significant Accounting Policies, Disclosures and Notes on Accounts (Schedule annexed to and forming part of the Balance Sheet as on 31st March, 2017 and Profit & Loss Account for the year ended 31st March,

2017)

(A) BACKGROUND AND OPERATIONS:1. Shivalik Mercantile Co-operative Bank Ltd. was registered in 1997 under Uttar Pradesh Co-operative Societies Act 1965 and started

operations in September, 1998. Later, in September 2010, consequent upon this inter-state merger, the Bank was re-registered under the Multi State Co-operative Societies Act 2002, as a Multi-State Urban Co-operative Bank, and expanded its area of operation beyond the entire state of UP to include area in the state of Madhya Pradesh. Presently the bank is a Tier II bank with twenty one branches, twelve in District Saharanpur, two in District Muzaffarnagar, one in Meerut, two in Ghaziabad & two in Noida, U.P., and one each in Indore & Dhar, M.P. The bank has further been granted permission by the RBI to opoen ten more branches, seven in UP & three in MP. The Bank provides complete retail and corporate banking services.

2. Merger Of Malwa Commercial Co-Operative Bank Ltd. With Our Bank: Malwa Commercial Co-operative Bank Ltd., Indore, M.P. (Target Bank) merged with Shivalik Mercantile Co-operative Bank Ltd. (Acquirer

Bank) with effect from 1st September, 2012. In accordance with the scheme of merger, the Share Capital of the Target Bank was kept in Collection Account in the books of the Acquirer Bank for a period of 1 year from the date of merger. On the expiry of the period of one year the balance amount (less, held by borrowers & guarantors) remaining in collection account was transferred to General Reserve. During the year only an amount of H24,600/- remains in the books of the bank, that pertains to share capital held by borrowers & guarantors of the said bank.

3. Merger of Bhoj Nagrik Sahakari Bank with our Bank: a. Bhoj Nagrik Sahakari Bank Maryadit, Dhar, M.P. (Target Bank) merged with Shivalik Mercantile Co-operative Bank Ltd. (Acquirer

Bank) with effect from 1st November, 2010. As per the scheme of merger, the Share Capital of the Target Bank is being treated as Collection Account in the books of the Acquirer Bank and will remain so for a period of 10 years from the date of merger. During this period, any share-holder of the Target bank desiring to withdraw his/her shares shall be paid back the amount at par. After the expiry of 10 years’ period, the amount remaining unpaid shall be converted to the share capital of the equivalent amount of Shivalik Bank. The current balance in the said account is H16,87,900.

b. As a part of the prudential practice the non-performing loans of the Target Bank which remained unrealized till 31st March, 2012 were written off as bad debts in the F.Y. 2011-12. During the current year, H2.00 lacs has been recovered and credited to current year’s Profit & Loss Account. The further efforts for recovery of these loans will continue and recoveries, if any, shall be considered as income for the year in which the recoveries are made.

(B) SIGNIFICANT ACCOUNTING POLICIES:1. Accounting Convention The financial statements have been prepared in accordance with the historical cost convention and on going concern concept and

in accordance with the generally accepted accounting principles and the statutory provisions prescribed in Banking Regulation Act 1949, the Multi State Co-operative Societies Act 2002, circulars and guidelines issued by the Reserve Bank of India from time to time, the Accounting Standards issued by the Institute of Chartered Accountants of India and practices prevailing within the banking industry in the country, except as otherwise stated.

2. Use of estimates The preparation of the financial statements, in conformity with generally accepted accounting principles, requires management to

make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revisions to the accounting estimates are recognized prospectively

3. Foreign Exchange Transactions The bank holds Foreign Exchange Authorized Dealer Category-II license & has entered into transactions related to exchange of foreign

currency on behalf of customers during the year. The same are accounted in the books of the bank at liability incurred on the date of the

transaction. The bank does have any foreign exchange assets/liabilities.

FINANCIAL REPORT



2017)

4. Investments 4.1 In accordance with the extant instructions issued by Reserve Bank of India for the purpose of valuation of Investments, the Bank has

classified its Investment portfolio as at 31st March 2017 into the following three categories:

(a) Held To Maturity (HTM): Investments under this category are carried at their book value. Any premium on acquisition of a

security is amortized over the balance period to maturity.

(b) Available For Sale (AFS): Investments in the category are valued at market rate and net depreciation in the category, if any, is

provided for. Net appreciation, if any, is ignored.

(c) Held For Trading (HFT): Investments in the category are valued at market rate and net depreciation in the category, if any, is

provided for. Net appreciation, if any, is ignored.

4.2 The Investments have been disclosed in the Balance Sheet as under:

SLR: (a) Central and State Government Securities

Non-SLR: (a) Other Trustee Securities

(b) Shares of Co-operative Institutions

(c) Other Investments

4.3 Market Value of Central and State Government Securities is determined in terms of Yield to Maturity method indicated by Fixed

Income Money Market Dealers Association (FIMMDA).

4.4 The amortization of premium on investments in HTM category is calculated on days basis to maturity.

4.5 A provision of H19,98,100 has been made for Depreciation on Investments (IDR) under Available for Sale category as on 31st March,

2017 (previous year H NIL).

4.6 Investment Fluctuation Reserve is being created as per the extant instructions of RBI.

5. Loans and Advances 5.1 (a) The classification of advances into Standard, Sub-standard, Doubtful & Loss assets as well as provision on non-performing

advances has been arrived at in accordance with the extant instructions issued by the Reserve Bank of India with regard to

Income Recognition and Assets Classification (IRAC) from time to time and as applicable for preparation of this Balance Sheet.

(b) In addition to this, a general provision on standard assets is also made as per the extant instructions issued by Reserve Bank of

India in the following manner:

Category of Advance (Excluding NPA) %age provision made

Advances for Commercial Real Estate for commercial use 1.00%

Advances for Commercial Real Estate for Housing needs 0.75%

Advances to agricultural and SME sector 0.25%

Advances against FD, LIC, KVP & NSC Nil

Other Advances 0.40%

5.2 The overdue interest in respect of non-performing advances is provided separately under “Overdue Interest Reserve” in accordance

with the extant instructions issued by Reserve Bank of India.



2017)

6. Fixed Assets and Depreciation 6.1 Fixed Assets are stated and carried in the Balance Sheet at written down value, purchase/additions during the year less depreciation

for the year thereon. Cost includes incidental expenses incurred on acquisition of assets.

6.2 Depreciation on Fixed Assets is provided at the rates mentioned below:

(a) Furniture and Fixtures: 15% (W.D.V.)

(b) Office Equipments: 15% (W.D.V.)

(c) Office Vehicles: 15% (W.D.V.)

(d) Safe, Locker Steel Almirah: 2.5% (W.D.V.)

(e) Computer Hardware & Software: 33.33% (Straight Line)

(f ) Temporary Structures: 100%

6.3 Depreciation on assets purchased in the first 6 months of the year is provided at full rates. Depreciation at 50% rates is provided for

fixed assets purchased in the last 6 months of the financial year. Depreciation on assets sold during the year is charged up to the

date of sale.

6.4 Depreciation on assets, where cost of each item is below H 5,000/- is provided @ 100% in the year of purchase itself.

6.5 There has been no change in method and rates of providing depreciation as compared to the previous year.

7. Revenue Recognition (Accounting Standard AS-9) 7.1 Items of income and expenditure are generally accounted for on accrual basis.

7.2 Income from non-performing assets is recognized to the extent realized, as per the extant instructions issued by Reserve Bank of

India.

7.3 Income derecognized on classification of any advance account as NPA is recognized as income on subsequent actual realization

and re-classification of asset as standard asset.

7.4 Any recovery against advances written off in earlier years is considered as income of the year in which the same is recovered.

7.5 Dividend received from shares of co-operative institutions is accounted on receipt basis.

7.6 Interest on overdue fixed deposits is provided at rate of interest applicable on savings account in accordance with the extant

instructions of RBI. Actual interest expense is accounted for at the time of renewal of FDR.

7.7 There are no material prior period item’s included in Profit and Loss account.

7.8 Certain items of income such as Locker Rent, loan processing fees are recognised on cash basis. The quantum of such income is not

material.

8. Non-Performing Assets 8.1 Non-Performing assets of the bank have been identified and provision thereon has been made as per the extant instructions of

Reserve Bank of India.

8.2 Any advance including Bills Discounted, which became Non Performing Assets at any time during the year, interest accrued and

credited to income on such advance is reversed to the extent the same is not realized.

8.3 Interest accrued on NPA is not shown as income but shown as “Overdue Interest Reserve” in the Balance-sheet.

FINANCIAL REPORT



2017)

9. Employee Benefits (Accounting Standard AS-15) 9.1 The liability towards gratuity is assessed and calculated on actuarial valuation and paid every year to L.I.C. of India as Employees

Group Gratuity Scheme.

9.2 Bank’s Contribution & Employees’ contribution towards provident fund is paid every month to Commissioner of Provident Fund in accordance with the provisions of Employees Provident Fund Scheme, 1952 and Employees Pension Fund Scheme, 1995.

9.3 Leave encashment is accounted on actual payment basis.

9.4 The bank does not have any scheme of LTC for its employees.

10. Reserve Fund and Other Reserves 10.1 Dividend remaining unclaimed over 3 years are transferred to Statutory Reserve Fund a/c.

10.2 Nominal Membership and Entrance Fees are transferred to Statutory Reserve Fund every year.

11. Taxation 11.1 Income Tax expense comprises of Current Tax. Current Tax is provided on the Taxable Income using applicable Tax Rates and Tax

Laws.

11.2 Deferred Tax Liability in accordance with AS-22 (Accounting for Taxes on Income) has been recognized, as per the details given below:

Due to Depreciation

Due to creation of ReserveU/s 36(1)(viii) of IT Act

Total

For period up to 31st March, 2016 13,17,222 41,11,782 54,29,004For the year 2015-16 (recognised in this year) 6,74,578 - 6,74,578For the year 2016-17 6,58,396 13,02,455 19,60,851As on 31st March, 2017 26,50,196 54,14,237 80,64,433

(C) DISCLOSURES AND NOTES ON ACCOUNTS:1. Disclosure as per the extant instructions of Reserve Bank of India:

(Amount in H Lacs)

Sl.No. Particular 31.03.2017 31.03.20161.1. Capital to Risk Asset Ratio (CRAR) 15.07% 13.85%1.2. a. Movement of CRAR (Basis Points) 122 10

b. Risk Weighted Assets 44984.49 43448.221.3. Values of Investments are as under:

A. Government /Approved Securities (SLR) a. HELD TO MATURITY Face Value 19815.00 16340.00 Book Value 20179.20 16533.52 b. AVAILABLE FOR SALE Face Value 4210.00 210.00 Book Value 4324.44 210.82 Market Value 4304.46 217.75 c. HELD FOR TRADING Face Value - 1500.00 Book Value - 1510.75 Market Value - 1515.23B. Other Investments (Non-SLR) Shares of Co-operative Institution 0.02 0.02 Others (Book Value) 24.74 224.72 Others (Market Value) 28.66 229.66

1.4. Advances against Shares & Debenture NIL NIL

1.5. Advances of H5,59,50.64 Lacs (Previous year H6,02,22.31 Lacs) shown in the Balance Sheet include:



2017)

Particulars FUND BASED NON-FUND BASED31.03.17 31.03.16 31.03.17 31.03.16

i) Advances against Real Estate, Construction Business,

Housing

12,283.76 11,807.91 Nil Nil

ii) Advance to Directors Nil Nil Nil Niliii) Advances to Relatives of Directors & Companies/ firms in

which they are interested

Nil Nil Nil Nil

iv) Advances to Chairman Nil Nil Nil Nil

Sl.No. Particular 31.03.2017 31.03.20161.6 Average Cost of Deposits 7.02% 7.85%1.7 a. Gross NPAs

b. Net NPAs

1281.51

751.51

761.68

362.641.8 Movement in NPA

Opening Balance

Add : Additions during the year

Less : Closed/ Recovered /Written off

Closing Balance

761.68

2246.67

1726.84

1281.51

266.10

1172.36

676.78

761.681.9 a. Interest income as a percentage of working funds

b. Non-Interest income as percentage of working funds

c. Operating profit as a percentage of working funds

d. Return on Assets

e. Business (Deposits + Advances) per employee

f. Profit per employee (Before Tax)

g. Profit per employee (After Tax)

10.02%

0.80%

1.75%

1.57%

325.99

3.89

2.21

11.01%

0.58%

1.88%

1.36%

445.20

3.70

2.271.10 a. Provision on NPAs required to be made

b. Provision on NPAs actually made

c. Provisions on depreciation in investments required to be made

d. Provisions on depreciation in investments

e. Provision on Standard Assets required to be made

f. Provision on Standard Assets actually made

349.16

530.00

19.98

19.98

173.68

173.68

294.03

399.03

-

-

165.94

165.94

1.11 A total of 2 Loans & Advances accounts involving a sum of H7.58 lacs have been restructured during the year.

1.12 No fixed assets were revalued during the year.

FINANCIAL REPORT



2017)

2. Related Party Disclosure (Accounting Standard AS-18)A. List of the related parties and their relationship

Name of the party Relationship

a. Key Managerial Personnel

1. Shri Yashvir Kumar Gupta Chairman

2. Shri Suveer Kumar Gupta MD & CEO

b. Relatives of the Key Managerial Personnel

1. Shri Suveer Kumar Gupta Son of Shri Yashvir Kumar Gupta

2. Smt. Swarn Lata Gupta Wife of Shri Yashvir Kumar Gupta

3. M/s Yashvir Kumar Gupta HUF HUF of Shri Yashvir Kumar Gupta

4. Smt. Shilpa Gupta Wife of Shri Suveer Kumar Gupta

5. Shri Dinesh Kumar Mittal Brother of Shri Yashvir Kumar Gupta

B. Details of transactions with the related parties carried out on an arm’s length basis.

S. No Nature of the transactions Relatives of Key Managerial Personnel Relatives of Key Managerial Personnel31st March 2017 31st March 2016

1. Salary paid 24,78,964 24,16,3082. Rent paid 62,04,892 55,41,949

3. Leases (Accounting Standard AS-19) The bank has cancelable operating lease and the disclosures under AS 19 on ‘Leases’ issued by ICAI are as follows:

i) Lease rent payments of H2,00,94,269.80 (Previous Year H1,52,78,555.68) have been recognized in the statement of profit and loss for the

year ended March, 2017.

ii) The lease agreements entered into pertain to use of premises & electricity generator by the bank. The lease agreements do not have any

undue restrictive or onerous clauses other than those normally prevalent in similar such agreement.

4. Intangible Assets (Accounting Standard AS-26)

Details of Computer Software included in Other Assets in accordance with AS-26 on Intangible Assets issued by the ICAI are as under:

(Amount in H Lacs)

Opening balance as on 01.04.2016 18.66Additions during the year 9.78Less: Amortization/Depreciation 13.13Closing balance as on 31.03.2017 15.31

5. Impairment of Assets (Accounting Standard AS-28) In accordance with Accounting Standard 28 the bank has written off a sum of ‘NIL’ (last year ‘NIL’) to its profit and loss account on account

of Impairment of assets.


6. Provisions, Contingent Liabilities & Contingent Assets (Accounting Standard AS-29)

(Amount in H Lacs)

Particulars 31.03.2017 31.03.2016

Bank Guarantees 44.34 51.61

(Bank Guarantees are 100% secured against tangible securities.)

7. Segment reporting (Accounting Standard AS-17):

Apart from banking business, the Bank is engaged in selling of Insurance policies as an authorized corporate agent, as permitted by RBI, for

following insurance companies:

• General Insurance – Oriental Insurance Co. Ltd. and ICICI Lombard General insurance Co. Ltd.

• Life Insurance – Life Insurance Corporation of India and Bajaj Allianz General Insurance Co. Ltd.

• Health Insurance – Star Health and Allied Insurance Co. Ltd.

The income earned from insurance business during the year is H60,74,805.85

8. Details of Other Investments:8.1. Details of Non-SLR investments:

(H in Lacs)

S.No.

Issuer Amount Extant of ‘below investment grade

securities’

Extant of ‘unrated securities’

Extant of ‘unlisted securities’

(1) (2) (3) (4) (5) (6)1. PSUs (NHAI) 24.72 - - -2. FIs - - - -3. Public Sector Banks - - - -4. Mutual Funds - - - -5. Others 0.02 N/A 0.02 0.026. Provision held towards Depreciation - - - -

8.2. Non-SLR Investments of the bank comprise the following items:

S.No.

Name of Investment Amount (H)

1. Shares of District Co-operative Bank Ltd., Saharanpur 1,0002. Shares of Indore Premier Central Co-op. Bank Ltd., Indore 1,0003. 8.30% Tax-free Bonds issued by NHAI. 24,72,000

TOTAL 24,74,000

8.3. All the investments under this head are within limits defined as per the extant instructions of RBI.

8.4. Investments under this head have been valued at the lower of book value and market value.

8.5. Non performing non-SLR investments are Nil.


2017)

FINANCIAL REPORT



2017)

9. Borrowings:The Bank has taken overdraft limits from other banks, against the security of its Fixed Deposits in these banks, to meet short term liquidity

requirements during the year. The details of the limits sanctioned are as under:

S.No. Name of Bank from which limit has been availed

Limit Amount(H in Crores)

Amount of FDRs pledgedto secure the limit

(H in Crores)

1. IDBI Bank 17.81 25.61

10. Statutory Liability 10.1 The Bank had a statutory liability, towards Education Fund of H7,34,707/- on account of appropriations made during the year

towards Education Fund, which had to be paid to The National Co-operative Union of India Ltd., New Delhi under The Multi-State Co-operative Societies Act, 2002. The payment was made on 27th September, 2016.

10.2 DICGC Premium has been paid up-to-date & the next payment due date will fall in May, 2017.

10.3 No penalty has been imposed by RBI till date.

11. Priority Sector & PSLC Sale The Bank participated in the trading of Priority Sector Lending Certificates (PSLC) as permitted by RBI during the year. The PSLC traded

along with the Priority Sector & Weaker Section lending ratios of the Bank for the year are as follows:

Amount(in lacs of H)

Percentage

Total Amount lent under Priority Sector 25,573.95 -Less: PSLC Sold (275.00) -Net Priority Sector Lending of the Bank 25,298.95 42.01%Weaker Section Lending of the Bank 7,128.84 11.84%

12. Appropriation of profit for the year During the current year, Bank has adopted the practice of appropriation of profit towards statutory and other mandatory reserves/funds

as on date of balance sheet i.e. 31st March of each year, as against the appropriation of profits after the holding of AGM as adopted in

the previous years. The appropriation towards dividend shall continue to be made as approved in the AGM, after the meeting is held.

13. Others An amount of H1,76,92,350 is outstanding as on the date of the Balance Sheet, from Janhit Foundation (our partner NGO), against

advance given by bank to support them in carrying out Microfinance activity. The advance is being adjusted each month from the

monthly consultancy fees paid to Janhit Foundation by the bank. The total repayment made during the year was H18,70,500/-.

14. Previous year figures have been regrouped and recasted wherever considered necessary to make them comparable with those of

current year.

As per our report of even date attachedFor M R S & Co. Sd/- Sd/-Chartered Accountants Suveer Kumar Gupta Sarvesh Singhal(Firm Regn. No. 016610N) MD & CEO DIRECTOR Sd/- Sd/- Sd/- Sd/-Ram Kumar Dhiman Sudhakar Agarwal Shiv Puran Gulati Yashvir Kumar GuptaPartner (M. No. 096852) DIRECTOR VICE CHAIRMAN CHAIRMAN



Appropriation of Profit 2016-17Opening Balance Amount (in H) Closing Balance Remarks

Accumulated Profit of previous years 87,49,176.21

Less: Adjustments during the year (9.00)

Profit for the year 2016-17 10,02,57,719.12

Total Profit 10,90,06,886.33

Proposed Appropriation:

Statutory Reserve* 8,53,46,816.00 2,50,64,430.00 11,04,11,246.00 25% of current year’s Profit

(Mandatory as per Multi-State

Co-operative Societies Act, 2002)

Education Fund* - 10,02,577.00 10,02,577.00 1% of current year’s Profit



Contingency Reserve* 2,41,79,823.00 1,00,25,772.00 3,42,05,595.00 10% of current year’s Profit



Investment Fluctuation Reserve* 1,63,43,728.00 54,02,190.00 2,17,45,918.00 In accordance with RBI guidelines

Proposed Dividend @ 9% 3,96,69,849.00 3,96,69,849.00 Last year’s dividend amount was

H3,94,54,789.50 @ 9%

Total Appropriation 8,11,64,818.00

Accumulated Profit C/F to next year 2,78,42,068.33

* Being statutory in nature, these appropriations have already been effected in the Balance-sheet as on 31st March, 2017.

Annual Operation Plan 2018-19Description Proposed Targets for the year 2018-19

Branches 35

Deposits H1250 Crore

Loans & Advances H810 Crore

Share capital H55 Crore

Net Profit 10 Crore

Membership 33,000

New Schemes Expansion in area of operation to adjoining states, greater push on digital banking for our customers and increase in productivity per employee.

(Amount in H Crore)

Income Amount Expenditure Amount

Interest on loans 90.0 Interest on Deposits & Borrowings 76.0

Interest on Investments 40.0 Operating Expenses 32.0

Miscellaneous Income 8.0 Depreciation & Repairs 4.0

Miscellaneous Expenses 4.0

Tax & Provisions 12.0

Net profit 10.0

Total 138.0 Total 138.0

FINANCIAL REPORT


Long Term Perspective Plan:

A. Business Plan:1. Expansion of Branch Network and Area of Operation As on 31st March, 2017, the Bank had 21 branches spread across two States, i.e. Uttar Pradesh and Madhya Pradesh. The bank has already

received approval from the RBI to open 10 additional branches which will be operational during FY 2017-18. In addition, the bank has

also received approval from the RBI to expand its area of operation to Delhi and two districts in Uttarakhand. As a result, the Bank will

focus on stabilizing the newly opened branches in the current year and apply to RBI under Annual Business Plan 2017-18 for a few

additional branches in the newly expanded area of operation.

2. Customer Experience The bank has delivered on its strategic priorities to centralise certain operational procedures such as account opening, loan appraisal

and cheque clearing. In future, the bank aims to fully utilise these processes to increase efficiency in the branches, reduce response times

and deliver an unparalleled customer experience. The bank aims to implement a CRM system and open newer avenues for customer

interaction such as call centres, online chat facility and email helplines.

In addition, the bank aims to provide a seamless customer experience on all channels - branch banking or one of the digital channels.

This requires many initiatives such as long term, large scale technological improvements and staff training.

3. Risk Management Risk management represents a key area of management focus especially as the bank continues to expand its geographical footprint.

The current regulatory regime has also increased their focus on the bank’s risk measurement and management capabilities and Basel

III implementation requires a number of enhancements in our ability to manage internal and external risk factors. Whilst Basel III norms

are not directly applicable for co-operative banks, we at Shivalik believe that risk managed growth represents a secure future for all our

stakeholders. The bank aims to further automate its risk reporting mechanisms and prepare itself for future conversion into a scheduled

commercial bank. In addition, the bank is working on developing a robust framework on information and cyber security.

4. Technology & Digital Banking The technology evolution has continued to provide greater customer experiences, stronger ability to manage risk and analyse the

performance of the business to assist in strategic growth. The current government’s push towards Digital India and the efforts of

institutions such as RBI, DFS and Niti Aayog has meant that the volume of digital transactions has continued to grow at an extraordinary

pace across the country.

Keeping this in mind, the bank always endeavors to implement and propose the latest digital trends and best practices. Its digital

roadmap is built on the following 5 pillars:

• Employee Digital Enablement

• Internal Processes

• Customer Experience

• Compliance, Risk and Reporting

• Data Analytics


SHIVALIK MERCANTILE CO-OPERATIVE BANK LIMITED

NOTICENotice is hereby given that the 20th Annual General Meeting (AGM) of the Members of SHIVALIK MERCANTILE CO-OPERATIVE BANK LIMITED will be held on Sunday, September 17, 2017 at 10:00 Hrs. at Hotel Royal Residency, Ambala Road, Saharanpur – 247001, Uttar Pradesh, to transact the following business:

1. To confirm the quorum of the 20th Annual General Meeting (AGM).

2. To grant Leave of Absence to members of the Bank other than those whose names appear in the Attendance Register of this 20th Annual

General Meeting.

3. To confirm the Minutes of the 19th Annual General Meeting and Minutes of the Special General Meeting of the members of the Bank

held on September 18, 2016 and May 8, 2016 and March 5, 2017, respectively.

4. To consider and approve the Annual Accounts, which consist of the Report of the Board of Directors, the Report of the Statutory Auditors,

the Balance Sheet and the Profit & Loss Account, for the year ended 31st March, 2017.

5. To appropriate net profit and to declare Final Dividend as recommended by the Board of Directors for the Financial Year 2016-17.

6. To review actual utilisation of reserve and other funds for the year 2016-17.

7. To take note of the Loans & Advances outstanding against the Directors and their relatives during the year 2016-17.

8. To appoint the Statutory Auditors for FY 2017-18 and to authorize the Board of Directors to fix their remuneration.

9. To consider and approve the Budget for 2018-19.

10. To consider and approve the Long-Term Perspective Plan and Annual Operation Plan of the Bank for Financial Year 2018-19.

11. To present the list of employees who are relatives of members of the Board of Directors and MD & CEO of the Bank.

12. To consider and approve the amendments to Clause 56 of the Bye-Laws of the Bank.

13. To consider and approve the Promoter(s) for the purposes of conversion to a commercial bank as per the application submitted to RBI.

14. Any other items with the permission of Chair.

By Order of the Board of Directors

Sd/-

(Suveer Kumar Gupta)

MD & CEO

Regd. Office:

13/1207, Ansari Road,

Saharanpur – 247001, Uttar Pradesh

Date: August 16, 2017


Shivalik Mercantile Co-operative Bank LimitedHead Office 1: Hakikat Nagar, Saharanpur 247001, Uttar Pradesh

Telefax: (0132) 2726125, 2726147Head Office 2: Fusion Square, Plot No 5A & 5B, Sector 126, Noida 201301, Uttar Pradesh

Telefax: (0120) 4060000Email: [email protected]

Visit us at: www.shivalikbank.com

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