Strong at 78

"With the increasing business activities of the Bank, it has become necessary to procure additional premises for (the) Mumbai Main Branch now situated at Horniman Circle, Fort. The Bank has procured new premises at Yusuf Building, V. N. Road, Fort (next to the Godrej showroom) which is a prestigious location in the hub of the main business locality of the metropolis and will be equipped suitably to cater to the varied needs of our existing clients,” states the 78th Annual Report 2004-2005 of The Zoroastrian Co-operative Bank Limited (Scheduled Bank).

The Bank is also considering the opening of branches at Lalbaug and Malad. "However, the RBI (Reserve Bank of India) as a policy matter, has adopted a stand of not granting any further license to cooperative banks for opening new branches. Efforts are underway to procure licenses for the aforesaid branches,” the Report notes.

Fabrics and furnishings store India-Weaves started by Pheroza Godrej and Firoza Kavarana celebrates its first anniversary

The 78th AGM (annual general meeting) on August 5, 2005 adopted an amendment to existing bye-law No 2 of the Bank, whereby the present corporate headquarters and central office of the Bank at Nirlon House, Dr Annie Besant Road, Worli also became its registered office, hitherto situated at the Zoroastrian Association Building at Horniman Circle. The reason for the change was that the premises are "more spacious and well planned for future expansion.” The Mumbai Main Branch will continue at the Zoroastrian Association Building, Horniman Circle. The Bank has nine more branches – Tardeo, Dadar, Mahim, Bandra, Andheri (two branches), Borivli (with an extension counter at the Rustomjee International School, Dahisar), Thana and Poona.

The Bank has declared a dividend at the maximum level (15 percent) permitted by the Commissioner for Co-operation and Registrar of Co-operative Societies, Poona, working out to Rs 3.75 per share, at a total outlay of Rs 79,32,653.58. Total income for the year ended March 31, 2005 was Rs 28,99,34,427.05 while total expenses stood at Rs 21,14,68,921.48. The Bank made a net profit of Rs 784.66 lakhs, compared to last year’s profit of Rs 793.52 lakhs, a drop of 1.12 percent.

Zoroastrian Bank chairman Kohina (with mike) and the board of directors at the AGM

Deposits increased from Rs 252.85 crores to Rs 286.74 crores, an increase of 13.40 percent over the previous year. The 151 non-resident (Indian rupee) accounts with the various branches had deposits of Rs 373.72 lakhs. The Bank has a full-fledged money changer’s license from the RBI, authorizing it to deal in foreign currencies and travellers’ cheques.

Advances also registered a growth from Rs 132.74 crores to Rs 145.72 crores, an increase of 9.78 percent during the year. The Bank assists borrowers in small-scale industry, women entrepreneurs, as well as professionals like doctors, lawyers, chartered accountants, architects and engineers, in furtherance of the social concept of banking in the cooperative sector. Special schemes are also available for consumer finance, such as housing, car or education loans. "Without concentrating on only large customers, a rapport is established even with small clientele interested in retail banking products which form the core of the Bank’s constituents,” the Report notes.

The Bank’s NPAs (non-performing assets) were Rs 1,027.87 lakhs in March 2005 as compared to Rs 422.36 lakhs last year. This was due to a few large accounts being classified as NPAs and due to the application of a revised 90 days’ norm for loan impairment. The net NPAs continue to be reflected at nil level as the Bank has provided an amount of Rs 1,176.32 lakhs as Bad and Doubtful Debts Reserve. An additional Rs 127 lakhs is provided as Reserves against Standard Assets as a prudent provisioning policy. The RBI conducted a full-fledged inspection of the Bank in January ’05. As nearly 70 percent of cooperative banks are facing financial problems, the Government of India is contemplating major changes which will overhaul the cooperative banking sector in India, the Report observes.

A new member on the Bank’s board of directors is Jimmy Panthaky who is a member of the Institute of Company Secretaries and the Institute of Cost and Works Accountants of India. While Panthaky joined the board on December 16, 2004, Dhanoo H. Khusrokhan and Villoo N. Cama became directors on April 15, 2004. Hoshang Kohina and Kerssie Wadia are chairman and vice chairman respectively. Farokh Banat­walla is the managing director. Soli Bulsara is the Bank’s internal auditor, while S. B. Bohra and Company are the statutory auditors.