TNSC Profile:

Mission:

The Mission of the Bank is to mobilise resources, provide banking products and other
professionalised services to the people, strengthen the affiliates, provide vibrant leadership
to the co-operative banking system, achieve sustained growth and ultimately to attain
prime position in the banking industry.

Growth of TNSC:

The Cooperative Banks functioning in Tamil Nadu are fulfilling the credit requirements of the farmers,
weavers, rural artisans, consumers of urban area. These institutions are known as Cooperative Credit
Institutions. The Coop. institutions are functioning under two category. They are: long-term coop. credit
institutions, short-term coop. credit institutions. The coop. credit institutions functioning under short-
term credit structure are of three-tier in nature. At the grass root level, the Primary Agricultural Coop.
Banks (PACBs) are functioning at village level. At the district level, the Central Coop. Banks (CCBs)
are functioning with the headquarters at district capital and their branches in various places of the
districts concerned. At the apex level, the Tamil Nadu State Apex Coop. Bank Ltd.,(TNSC Bank) is
functioning at Chennai which co-ordinates the entire short- term coop. credit structure.

The Tamil Nadu State Apex Co-operative Bank Ltd., commenced its business during November 1905 as
an Urban Coop. Bank. It was subsequently changed into a District Central Coop. Bank during July
1920. At present, the Bank is functioning at Chennai with 44 branches, an Extension Counter and H.O.
TNSC Bank is guiding the Dist. Central Coop. Banks / Primary Agricultural Coop. Banks in their
functioning and it is playing a major role in the coop. movement of Tamil Nadu.

TNSC Bank was formed in the year in which the coop. movement of Tamil Nadu was formed. As such,
the Bank has been serving the people of Tamil Nadu for a centenary for their economic development. As
far as Indian coop. movement is concerned, the Bank has commenced its business from the very next
year of the formation of coop. movement in India. TNSC Bank is the first ever State Coop. Bank having
the credit of celebrating the centenary year.
TNSC Bank has got the licence of Reserve Bank of India to carry on the banking business. TNSC
Bank is a Scheduled Coop. Bank and has been listed under the Second Schedule of RBI Act. TNSC
Bank is a member of the Deposit Insurance and Credit Guarantee Corporation (DICGC) and is an
insured coop. bank as per DICGC Act. TNSC Bank has got the privilege of having its share capital by
the Government of Tamil Nadu. TNSC Bank has been under close supervision and monitoring of the
higher financing agencies, viz., RBI, NABARD. Periodical inspection and supervision are done by
NABARD as per RBI guidelines. Government of Tamil Nadu is reviewing the performance of the Bank
periodically.
Eminent Co-operators have contributed for the growth and development of the TNSC Bank. At
present, TNSC Bank is headed by Thiru. T.Arivukkarasu, (Additional Registrar of Coop. Societies) as
Special Officer(Full Additional Charge), who has been deputed from the Government of Tamil Nadu.
The financial growth of the Bank is in a commendable position. They are as follows.

SHARE CAPTIAL
a) Authorised Share Capital Rs.100.00 crores
b) Share capital held by DCCBs Rs.53.22 crores
c) By State Government Rs. 0.26 crores
Total Rs.53.48 crores
RESERVES The Bank has total reserves of Rs.467.58 crores as on 31.3.2006. The statutory
reserve constitutes Rs151.32 crores.The growth of reserves is given in the following table:
As on Amount (Rs. in crores)
30.06.1980 17.58
30.06.1990 49.90
31.03.1995 102.26
31.03.2005 439.14
31.03.2006 467.58

DEPOSITS On deposit mobilisation front, the Bank has achieved much.The Apex Bank has
mobilised a sum of Rs.3126.78 crores as on 31.03.2006. The growth of deposits is shown in the
following table:
As on Amount (Rs. in crores)
30.06.1980 130.30
30.06.1990 387.24
31.03.1995 760.29
31.03.2005 3062.58
31.03.2006 3126.78

The Bank has been extending the facility of NRO/NRE accounts at 7 of its branches.

BORROWINGS
The Apex Bank is getting refinance assistance by way of borrowings from National Bank for
Agriculture and Rural Development (NABARD) for extending credit facilities to the farmers for short-
term agricultural operations, and medium-term loans through DCCBs, weavers finance through the
DCCBs / Co-optex, from Small Industries Development Bank of India (SIDBI) for extending credit
facilities for small scale industries, National Coop. Development Corporation (NCDC) and from
National Handicapped Finance Development Corporation (NHFDC) for financing for the development
of physically challenged persons through DCCBs.
The total borrowings of the Bank as on 31.3.2006 was Rs.1206.76 crores.
INVESTMENTS
The Bank has to make investments in Government approved securities for the statutory liquidity ratio
(SLR) purposes. The Bank has been investing its funds in the Central Government / State Government's
approved securities. As on 31.3.2006, the Bank has total investments of Rs.1105.36 crores.
The Bank has a separate Treasury Section to deal with treasury operations on its behalf as well as its
affiliates, viz. , DCCBs and Urban Co-op. Banks.

ADVANCES Through DCCBs, TNSC Bank has been extending credit facilities to the PACBs
for short- term / medium-term agricultural purposes. Depending upon the needs of the farmers
the Bank has been extending advances upto Rs.1000 crores per year. Further, the Bank has been
extending credit facilities through the above channel for the allied activities of farmers like
purchasing milch animals, sheep rearing, poultry farming, bullock carts, sericulture at lesser
interest rates. The Bank has been extending credit facility to the DCCBs for extending loans
directly by them to small industries and Urban Coop. Banks from the refinance facility availed
from SIDBI. The Bank has been extending cash credit limits for financing Coop. Sugar Mills,
Coop. Spinning Mills, Coop. Wholesale Stores, and other coop. institutions. The availment of
jewel loans at rural and urban areas has been increasing year after year. In order to meet this
credit needs, the Bank has been extending refinance facility to the DCCBs for
issuing jewel loans directly by them and also through PACBs. The Apex Coop. Institutions
functioning at Chennai are getting credit facilities from the Bank . Out of the refinance availed
by the Bank from NHFDC, the Bank has been extending finance to the DCCBs for issuing loans
to physically challenged persons. The Bank has been extending various loans to individuals
directly through the Branches and H.O. at Chennai. Further, the Bank has been extending jewel
loan facility at lower interest rate to the middle-income group people. The Bank has also been
extending Computer Loan, Education Loan, Building Mortgage Loan, Housing Loan, Rain
Water Harvesting Loans, Home Needs Loan, Loans against Securities, through the Branches and
H.O. As on 31.3.2006, the total loans and advances of the Bank stood at Rs.3040.71 crores.
WORKING FUNDS The working funds of the Bank has been increasing year after year. As on
31.3.2006, the
working funds of the Bank was Rs.5068.43 crores. The growth of working funds of the Bank can
be seen from the following table:
As on Amount (Rs. in crores)
30.06.1980 194.51
30.06.1990 789.33
31.03.1995 1726.33
31.03.2005 4788.75
31.03.2006 5068.43
AFFILIATES DEVELOPMENT PROGRAMME The Apex Bank, having in mind the
leadership role to be played in relation to the DCCBs and PACBs, is making grants every year
from out of its profits for creation of various infrastructure facilities at the DCCB level. A
programme called "Affiliates Development Programme" started in the year 1990-91 is being
implemented by providing computers, plain paper copier machines, fax machines, vehicles
(jeeps) to the DCCBs in order to improve their working performance. The Apex Bank is also
extending such facilities to the PACBs in the State by providing financial assistance for purchase
of jewel safe boxes,putting up modern counters, etc.A Deposit Guarantee Scheme is being
implemented by the Apex Bank. The premium for this Scheme has been shared by the Apex
Bank, Dist. Central Coop. Banks and PACBs. This Scheme has been implemented every year
and the affiliates are getting benefit out of it.

PRIMARY COOPERATIVES DEVELOPMENT FUND (PCDF) In addition to the grant of

financial assistance to the DCCBs and PACBs from out of the profit every year, the Bank is also
contributing 5% of the net profit every year to the Primary Coop. Development Fund (PCDF)
created in our state. The DCCBs who are making profits are also making contributions at the
same rate every year. From out of the above Fund, the PACBs are being helped to purchase
jewel safe boxes, putting up modern counters and construction of bank buildings. "Cooperation
among Cooperatives" and "Cooperative Education" are two important principles of Cooperation.
In order to uphold these principles, every coop. institution has been contributing 5% of its net
profits to the "Coop. Research and Development Fund" and "Cooperative Education Fund"
maintained by Tamil Nadu Cooperative Union. For these Funds, the TNSC Bank has been
contributing 5% of its net profit every year. AWARDS TO DCCBs / PACBs In order to create a
healthy competition among the CCBs, the Bank has been implementing Best Performance
Award Scheme from the year 1990-91 based on their performances. A Committee under the
Chairmanship of the Secretary to the Government, Cooperation Department of Government of
Tamil Nadu, will select the Best Performing Bank. Under the Scheme of Development Action
Plan implemented under the aegis of NABARD, one PACB from each DCCB's jurisdiction will
be selected based on the performance and will be awarded every year. The Scheme was
introduced during the year 1994-95. AGRICULTURAL COOPERATIVE STAFF
TRAINING INSTITUTE (ACSTI) The Apex Bank has established a Training Institute at
Madhavaram, Chennai, with a financial assistance extended by National Co-op. Development
Corporation (NCDC). The ACSTI, manned by Faculties from the Apex Bank, is providing
training to employees of Apex Bank, DCCBs,
PACBs and Urban Co-op. Banks on all banking related subjects. The ACSTI trained 27,649
persons of SCB, DCCBs, PACBs, Urban Co-op. Banks upto 31.03.2006. PROFIT The Bank
has been making profit continuously since its inception and for the year 2005-2006 the Bank has
earned a profit of Rs.28.02 crores. This is 10.40% higher than the profit reported for 2004-2005.
AWARDS FROM NABARD / NAFSCOB The Bank has been bagging the awards of
NAFSCOB and NABARD every year on account of its exemplary performance among the State
Coop. Banks in the country. The details are as follows:

NAFSCOB Awards

Year Performance Prize

1985-86 Overall Best Performance Third
1986-87 Overall Best Performance Second
1987-88 Overall Best Performance Third
1988-89 Overall Best Performance Second
1989-90 Social Goals Development Special Award
1990-91 Overall Best Performance Second
1991-92 Overall Best Performance First
1992-93 Social Goals Development Special Award
1993-94 Operational Effiecency Special Award
1995-96 Overall Best Performance First
1996-97 Overall Best Performance First
1996-97 All India Mutual Arrangement Scheme First
1997-98 All India Mutual Arrangement Scheme First
1999-2000 All India Mutual Arrangement Scheme First
2000-2001 Overall Best Performance First
2001-2002 Overall Best Performance Second
2001-2002 All India Mutual Arrangement Scheme Special
Best
2003-2004 All India Mutual Arrangement Scheme
Performance

NABARD Awards
Year Performance Prize
 1995-96 Overall Best Performance Second
1998-99 Overall Best Performance Second
2000-2001 Overall Best Performance First
The NABARD has also honoured the Bank by giving a Special Award for Self-Help Group
Linkage Programme through Coop. Banks in Tamil Nadu during 2002-2003.

MANAGEMENT The affairs of the Bank is being managed by Thiru. A.S. Govindarajan,
Additional Registrar of Coop. Societies, who is holding the post of Special Officer (Board of
Management) from 10.07.2006.

TAMIL NADU GOVERNMENT ASSISTANCE

Tamil Nadu Government’s Assistance under cooperative credit Cooperative credit institutions
play a significant role in extending credit to formers for undertaking farm operations and also
persons living in rural areas to undertake various economic activities. On account of the
successive droughts these institutions faced financial problems. The government has taken firms
steps to provide additional funds to enable the cooperative credit institutions to be revived.
Equity participation of the Government of Tamil Nadu in TNSC Bank The Government of Tamil
Nadu have invested a sum of Rs.26 lakhs in the ordinary share capital of the Tamil Nadu State
Apex Cooperative Bank Ltd., Chennai. The dividend over and above 3% on this investment
would be added to the Agricultural credit stabilisation fund every year and thereby this fund is
being strengthened continuously.