Director Report

DIRECTOR’S REPORT 2021-2022

Dear Members,

The Directors of your bank feel immense pleasure in placing before you the 26th Annual Report of your bank containing the audited accounts for the financial year ended 31st March 2022.

Your Bank was established by Late Mirza Faridul Hasan Beg Sb, a renowned social worker and philanthropist, for the national objective of financial inclusion and fulfilling the banking needs of the poor and downtrodden sections of the society, who were unable to transact with any other commercial bank.

Your Society was registered with the Registrar of Cooperative Societies NCT Delhi vide registration number 6(U) JCB/RCS dated 31st July 1995 and received banking license number UBD.ND.1179 P. dated 27th November 1995 from the Reserve Bank of India for conducting banking business in the area of Delhi.

Your Bank started its operation on 26th December 1995 by opening its branch at Batla House area in the Jamia Nagar locality and later on expanded to Sarai Jullena, Abul Fazal Enclave, Madanpur Khadar, Zakir Nagar, Sangam Vihar, Jasola and Badarpur areas of Delhi.

Under the dynamic leadership of Chairman Mr M.Q.H. Beg, and the exemplary guidance of the Board of Directors, your bank has transformed into a modern and technology driven bank, at par with any other commercial bank. Your bank is equipped with cloud based Core Banking Solution (CBS) to extend anywhere banking facilities to its customers. The bank is also extending host-to-host NEFT / RTGS facilities, ATM facility, APBS (Aadhar payment bridge system) facility of NPCI to receive various payments like LPG subsidy, Social Pension, student’s scholarship, etc directly in the accounts of its customers under the DBT (Direct Benefit Transfer) scheme of the Government of India. For the convenience of its customers, your bank has also entered into an agreement with NPCI for providing the RuPay based debit card, which can be used to withdraw money from the ATM of any bank, make payments at merchant outlets or for online purchases. For enhanced and secure digitisation, the bank has also replaced magnetic strip based cards with chip based smart cards, and existing ATMs having magnetic strip based card reader with more secure and sophisticated EMV enabled Cash Recycler Machines, wherein the customers can deposit and withdraw cash 24x7.

Moving forward towards more digitization, the bank developed and deployed mobile banking facility during the year. Now, the customers of the bank can download the Jamia Bank Mobile App from Play Store on android phones and from i-store for i-phones and avail a number of banking services any time at their convenience using their mobile phones. Recently, the bank also installed a Cash Recycler Machine at the Abul Fazal Enclave Branch and one more Cash Recycler at Batla House Branch to enable the customers of the bank to deposit cash in their accounts, including loan accounts, besides facilitating customers of the other banks residing in the area, to withdraw cash any time.

To provide single window solutions to its customers, the bank ventured into para-banking services and introduced PAN card services. With this facility, now the customers of your bank can apply for NEW PAN cards or for any modification in the existing PAN card. To provide insurance services to its customers, your bank has obtained a corporate agent licence from IRDA for selling life and non-life insurance products. Now, both customers and non-customers can obtain insurance of their vehicles and other insurable products like stocks, properties, health insurance and various life insurance products at any branch of the bank at the most competitive price.

PERFORMANCE HIGHLIGHTS

Membership : The membership of the bank decreased by 110 (0.77%) from 14,299 as on 31.03.2021 to 14,189 as on 31.03.2022. During the year, 213 new members joined the bank and 323 members resigned from the membership of the bank. The Board also advised all the members to update their KYC information in the bank’s record. For the same, members may submit KYC documents at the Shares Department at the Head Office. For any clarification or help, they may contact Ms Samreen Fatima at phone No: 011-26322236. The membership of Non-KYC compliant members is liable to be / may be cancelled.

Share Capital & Reserves : The share capital of the bank decreased by Rs.17.54 Lakhs (2.41%) from Rs.726.98 Lakhs as on 31.03.2021 to Rs.709.44 Lakhs as on 31.03.2022, whereas the reserve of the bank increased by Rs.57.85 Lakhs (1.75%) from Rs.3306.40 Lakhs as on 31.03.2021 to Rs.3364.25 Lakhs as on 31.03.2022.

Business of the Bank : The business of the bank increased by Rs.17.90 Crores (4.73%) from Rs.378.06 Crores as on 31.03.2021 to Rs.395.96 Crores as on 31.03.2022.

Deposits :Deposits of the bank increased by Rs.21.48 Crores (8.56%) from Rs.250.79 Crores as on 31.03.2021 to Rs.272.27 Crores as on 31.03.2022. The deposits up to Rs.5.00 Lakhs of all customers of the Bank are also insured with DICGC.

Advances :Advances of the bank decreased by Rs.3.59 Crores (2.82%) from Rs.127.27 Crores as on 31.03.2021 to Rs.123.68 Crores as on 31.03.2022.

Non-Performing Assets (NPAs) :During the year, the bank made recovery of Rs.590.56 Lakhs in NPA accounts. Accounts amounting to Rs.590.91 Lakhs added to NPAs due to fresh slippage. The gross NPA of the bank as on 31.03.2022 is Rs.1971.41 Lakhs(15.94%) and net NPA of the bank is NIL.

Capital to Risk-weighted Assets Ratio (CRAR) :– For the year ended 31.03.2022, the CRAR of the Bank is 20.54% as against the minimum requirement of 9% as prescribed by the Reserve Bank of India.

Audit :The accounts of the bank for the year ended 31st March 2022, were audited by M/S AKLR & Company LLP, Chartered Accountants. The bank has been awarded “A” Classification by the auditors. The Board of Directors expressed its sincere thanks to the auditors for their co-operation, guidance, and suggestions made by them while conducting the audit of the bank.

Dividend :After the devastating COVID-19 pandemic and with the opening of the domestic economy, your bank made substantial recoveries in NPA accounts but, at the same time, a number of well running businesses, particularly those which were dependent on overseas operations slipped to the NPA category, as most of the international borders were closed for foreigners. As a result, the recoveries made in NPA accounts of the Bank were set-off by the fresh slippages. A large portion of the operating profit was also consumed by the higher requirement of depreciation on government securities. Despite the higher provisioning on account of NPAs and depreciation on government securities, your bank managed to earn a net profit (PAT) of Rs.2,01,55,902/- for the financial year ended 31st March 2022.

After appropriating the profit towards statutory requirements, the Board of Directors of your Bank recommended to distribute the remaining profit amongst the members of the bank and proposed 10% dividend for financial year 2021-22, subject to approval by the general body.

Appropriation of Profit : The Board of Directors propose the appropriation of profit as under:

Title of the Reserve
AMOUNT IN (Rs.) 
1. Statutory Reserve (25%)  50,38,975.00
2. Bad & Doubtful Debts Reserve (25%) 50,38,975.00
3. Dividend Equalization Reserve 71,85,976.00
4. Building Fund 18,91,976.00
5. Technology Upgradation Reserve 5,00,000.00
6. Investment Fluctuation Reserve 5,00,000.00
Net Profit 2,01,55,902.00

The appropriation proposed is in accordance with the provisions of the Delhi State Cooperative Societies Act 2003.

Acknowledgments : The Chairman and the Board of Directors appreciated the efforts and hard work of the staff members towards recoveries in NPA accounts and regain the lost business due to the COVID-19 pandemic. The Board also acknowledged the efforts put in by the members of the Board of Management for their valuable contribution as desired by the Reserve Bank of India. The board also expressed its sincere thanks to the officials of the Registrar of Cooperative Societies and Reserve Bank of India for extending their support and valuable guidance.