Company profile

Cosmos Bank
Introduction
The Cosmos Co-operative Bank Ltd., established in 1906, is the second oldest & second largest
bank in the country. The Bank has recently completed glorious 108 years of service successfully.
It has attained multi state scheduled status in 1997. This more than a century old Bank, is a
professionally managed 'Financial Institution', a benchmark of credibility and innovation. The
bank was founded in 1906 in Pune by India's famous Freedom fighter, Lokmanya Bal Gangadhar
Tilak. He allocated the bank's managing responsibility to his friend, Namdar (Solicitor) Gopal
Krishna Gokhale, an economist and freedom fighter. During that period, the British- East India
Company had their own banks in India. Following the ideals of "Swarajya" and "Swadeshi",
Lokmanya Tilak thought of starting this bank so that Indians could learn about banking, benefit
from this new concept, use Saving, loans etc for development of Society and Nation. Lokmanya
Tilak himself decided the name as "COSMOS BANK". The word "COSMOS" means
"UNIVERSE" and also a "FLOWER".Bank has nurtured its traditional values in business
practices and in serving the small customers. At the same time it has adopted new technologies
and advanced banking tools to add value to its services. Cosmos Bank has carved a niche in the
banking sector due to its rich heritage, integrity, adherence to prudent banking practices,
technology advancement, customized products and services and most of all due to its
experienced,
qualified
and
professional
Board
of
Directors.
The Cosmos Bank is one of the first co-operative banks in the country to go live with the core
banking solution across its entire network of branches/ service outlets using Finacle-Infosys Core
Banking Software. It also received an Authorised Dealer License from the Reserve Bank of
India to become the third co-operative bank in India to acquire such a license in thirty years.The
Bank is licensed by the Reserve Bank of India(RBI) as Authorized
DealersinForeignExchangetransactionsundercategory1.
2.1.2 INFRASTRUCTURE SETUP

The Cosmos Bank operates through 134 branches and 1 special service cell in India spread
across6 States and in 37 Major Cities, which are as follows:
Maharashtra :
Maharashtra
Mumbai, Pune, Nagpur, Aurangabad, Nashik, Baramati, Jalna, Kolhapur, Satara, Phaltan, San
Madhya Pradesh Indore.
Andhra Pradesh Hyderabad, Vijaywada
Karnataka
Banglore. Belgaum, Nipani.
Gujarat
Surat, Ahmedabad, Baroda, Ankaleshwar, Rajkot, Bhuj, Gandhidham, Bhavnagar, Morbi, Nad
Tamilnadu
Chennai
The Bank has total staff strength of 2841 consisting of 1208 officers and 1633 other
staff members as on March 31, 2014.

2.2 MEASURES BY THE COSMOS CO-OPERATIVE BANK

To be at the fore front of competition in the banking sector, it is necessary to be abreast with
latest banking practices. It becomes imperative to in corporate the old as well as new
strategies and come up with comprehensive and whole some policy for the development of
the Bank. Moving this thought ahead, the Cosmos Bank gave detailed deliberation sunder
the age is of PROJECT NOVA, focusing on the skill sets & capacities of the staff and
officers, some important issues with reference to operational risk, the need to shift from
product based services towards customer based services as per the need of the customer,
aiming at customer delight and thus, increase the business volumes. This will also help in
retaining the present customer-base, give a fillip to fresh business acquisition and attract the
Gen Next customers. To provide banking services to a cross section of people, new
products and schemes are being conceptualized through the PROJECT NOVA. Through this
project, the strength of the Bank and the opportunities available were analyzed. The focus
has been on retail business. This project will enable the branch staff to fully concentrate on
day-to-day operations and marketing of various products of the Bank. To further assist this
strategy, the activities to support loan processing will be handled by Hubsand Back Offices.
The implementation of PROJECT NOVA will be started soon in all branches of the bank.
2.2.1CAPITALADEQUACY(CRAR)
They ear witnessed the growthof 1.06 Crs. In the share capital of the Bank, which rose from
312.86 Crs to 313.92 Crs. As per the RBI norms, aminimum CRAR ratio of 9%i mandatory
for co-operative banks. A s on 31stMarch 2014, the CRAR of the bank is at a satisfactory level
of 11.59%.
2.2.2 DEPOSITS
As on March 31,2014, total deposits of the Bank stood at 14733 Cr, increasing by1876
Cri.e.15%overlastyear.In the FY 2013-14 deposit growth of the Bank is at par with the
Banking sector as a whole. During this Financial year, the Bank launched various Deposit
Mobilization drives viz. CASAC arnival, CASAD rive for garnering new retail business.
Both, CASA Carnival and CASA Drive received over whelming response of customers.
With this initiative CASA deposit has increased by 114 Cr in new accounts opened under
CASA Carnival & 17 Cr in CASA Drive. During the year under report, the Bank launched
four new Savings & Current Account Schemes viz Premium Plus (Savings)Account Scheme,
Premium Salary (Savings) Account Scheme, Royale (Savings) Account Scheme and Royale
(Current) Account scheme.These schemes received a good response and contributed in
mobilizing new CASA business. To motivate staff for enhancing CASA and retail deposit
growth of the Bank & encourage healthy competition amongst the branches, the concept of

MD Cup was launched in the Financial Year under review. This is a rotating trophy.
Branch showing maximum growth in CASA and retail deposits during a month is awarded
this trophy. The trophy is handed over to the winning team branch at the hands of Managing
Director. MD Cup has helped in motivating the staff and creating enthusiasm amongst the
branches for garnering maximum CASA and retail deposit.
2.2.3 LOANS & ADVANCES
In the last financial year, the loans and advances of the Bank increased from 9,240 Cr to 10,295
Cr. Compared to last year, where advances increased by 730 Cr, this year the advances
increased by 11.42% which amounted to 1,055 Cr. The Credit Deposit Ratio as on 31st
March 2014 stood at 69.88%. As per prudential exposure norms laid down by the Reserve Bank
of India, based on the audited financials as on March 31, 2013, the Bank could take a maximum
single party exposure of 180 Crand a maximum Group exposure of` 480 Cr. In the year
under review, taking in to consideration the loan accounts which have been transferred to Asset
Reconstruction Company, Notional write off accounts, account acquired as non-banking assets, the
actual increase in advances is 1496 Cr which amounts to a 16.19% rise as compared to the
industry average of 13.79%. In the last financial year, the advances inpriority sector stood at
4,182 Cr, that is, 40.54% of the total advances. The advances to weaker sections makeup8.14%
of the total portfolio. The Bank has completed the target of RBI for advances to priority sectors.
Currently, the Bank offers a wide range of loan schemes like Home Loans, SME Loans,
Mortgage Loans, Car Loans, Gold Loans, Education Loans, Cosmo Credit Loan
setc.atinterestratesandtermsthatareverycompetitiveandcustomerfriendly.During the year under
review, the Bank launched Retail Loan Jalsa and Retail Loan Drive for garnering new retail
business. Both, Retail Loan Jalsa and Retail Loan Drive received overwhelming response of
customers. 31 crore Retail Loans were disbursed in 516 cases under Retail Loan Jalsa and
retails loans of 42 crore disbursed in 573 cases under Retail Loan Drive.
(i)

Retail Credit-To give the much desired push to retail loans a special
Retail Credit Department has been set up and would beheaded by a
General Manager. This department has been assigned here sponsibility of
increasing the quantum of retail loans across theBank.

(ii)

Housing
Loan
CellForspeedyappraisal,scrutiny,processinganddisbursementofhousingloans,aSpec
ialHousingLoanCellwasestablishedattheHeadOfficeon1st

(iii)

August,2013.Consideringthegoodresponsereceived
bythisventure,anotherSpecialHousingLoanCellwasestablishedatRegionalOffic
e,Laxmipuri,KolhapurinthemonthofSeptember2013.
CreditSupervision
Cell

TheBankhadestablishedaseparateCreditSupervisionDepartment in June
2011,with
the
main
task
of
Post-disbursement
monitoringoflargesizedborrowers.ItiscurrentlyheadedbyChiefGeneralMan
agerundertheactivecontrolandguidanceofJt.ManagingDirector
CreditManagement.
PeriodicevaluationofallsuchlargeloanassetsisbeingdoneregularlybythisDep
artmentbasedonturnoverintheaccount,repaymentofprincipal&interest,progr
essoftheunitduringmoratoriumperiod,reviewofCashCreditaccounts,etc.Indu
strywisereviewofborroweraccountsistakenbythiscellincaseofanyadversemarke
tsituations.Also,informationofborrowersunderConsortium/Multiplebankingise
xchangedbythisCellonquarterlybasiswithalltheconcernedbanks,thuscontributin
gtowardskeepingatrackoftheperformanceoftheselargeborrowerswiththeotherba
nks.

2.2.4 OVERDUES&NPAS
Asof31stMarch2014,thepercentageofoverdueis5.54%
whiletheGrossNPAisat6.49%
an d
thenetNPAisat3.81%.Inthisfinancialyear,theBankhasachievedarecoveryof`60crorefromNPAs.Wit
hreferencetotheSecuritizationAct,HonbleSupremeCourthadgrantedastayagainsttherecoverya
ctioninitiated byCo-operativebanksunderthisActontechnicalgrounds,duetowhichThe Cosmos
Banktoohasbeenfacinglegalimpedimentstorecover176crorefromNPA
accountsandbaddebts.Itisexpectedthattheissuemaygetresolvedpositivelyduring
thefinancialyear201415,thuspavingthewaytoinitiaterecoveryofamountslockedintheseNPAs.TheRecoveryDepartme
nthasbeenstrengthenedfortimelyandeffectiverecovery.Independentunitshavebeensetupforeffe
ctiveloanrecoveryinPune,MumbaiandotherbrancheswithadequatestaffstrengthwithaGeneral
Managerheadingtheseunits.Variousgoverninglawsandtheprovisionsgrantingrecoveryrights,in
cludingthoseoftheMaharashtraStateCo-operativeSocietiesAct1960
(section101subsection156)wereeffectivelyusedtocurtailtherisingNPAlevels.Recoveryactionhasbeeninitiated
underSecuritization&ArbitrationActsforconfiscationof
defaultersandguarantorscollaterals.VariousmeetingsofdefaultersinPune&outsideBranchesregio
nswerearrangedtogetoverdueloanaccountsclosedbywayofOTS.Responsereceivedforrecoveryfrom
defaultersissatisfactory.BankwasabletoclosemanyNPAs.
2.2.5 RISKMANAGEMENT
Risk Management is a key factor in ensuring the stability and development
ofbusinessofanybankconsideringtheeconomicconditions
fromtimetotime,contagionimpactofvariousglobaleventsandinter-

linkagesbetweenfinancialmarkets.Ithasbecome a regulatory compliance requirement from

Reserve Bank which aims to make the banking sector more robust and self-evolving. The
Cosmos Bank has developed a roadmap for implementing effective risk management policies
across the organization and is working towards building a Risk Awareness culture in all its
day-to-day activities. The Risk management portfolio has identified 16 business risks relevant
to the Bank, including operational risk, credit risk and financial risk. An approved Risk
Management Policy and Framework guides all the risk management initiatives undertaken by
the Bank. It acts as a basis for specific risk policies like Operational Risk Policy, Liquidity
Policy, ALM Policy, etc. which are currently being developed and implemented across our
Bank. The monitoring and reporting of the risk management policy compliance is made
through specific committees like Operations, Risk and Technology (OTR) committee, ALCO,
Loan committee, etc.Apart from these risk management initiatives, the department also
oversees Information Security, Business Process Re-engineering (BPR) activities and Project
Delivery Office. Further it also facilitates strategic analysis and management reporting of any
risk and governance issues through its Speak-Up Policy.
2.2.6 INVESTMENT &TREASURYOPERATIONS
TheFundsandInvestmentmanagementoftheBankislookedafterattheIntegrated
TreasuryDepartmentwith
a
state-of-theartDealingRoomatMumbaiandstrongsetupatPune.ApartfrommanagingstatutoryrequirementsofCR
RandSLRondailybasis,theTreasuryDepartmentworkslikeaseparateprofitcentertoensureoptimumut
ilizationoffundstomaximizereturnsbyhavingahawkeyeontheeverchangingmarketconditions.Theye
argonebywasanextremelyvolatileyearforthecurrency,moneyandBondmarkets.Theyearhadstartedo
napositivenotewithexpectationsoftheRBIcontinuingwithitssofteninginterestratepolicy.Butthenews
ofthetaperingoftheU.S.FederalReservesbondbuyingprogrameinMayledtoasharpfallinallemerging
marketcurrenciesandtheIndianRupeewastheworsthitamongstthem.TheRupeestabilizedonlyinthela
terpartoftheyear. The 10 year benchmark yields which were at 7.95% on 31st March 2013 fell
to 7.10% in May 2013 on expectations of a softer interest rate regime. It was at 7.57% on
July 15, before the RBI took steps to curb the fall in the Indian Rupee. The yields rose to 9.47%
in August 2013 but closed at 8.80% on 31st March 2014 due to various measures by the
Government
and
RBI
to
improve
Key
Indicators
of
the
economylikeCurrentAccountDeficit,FiscalDeficitandInflation.InspiteofthevolatilityintheBondma
rkets,andayearonyearriseinyields,theBankstreasurywasabletoperformexceedinglywellthisyear.
TheTreasuryDepartmenttookfulladvantageoftheappreciationinbondpricesinthe1stquarteranda
lsoextractedmaximumopportunitiesintheworseningmarketconditionsintheremaining3quarters
topostarecordprofitinthefinancialyearunderreview.TheNetProfitonsaleofsecuritiesroseto93.
21crore,whichisanalltimeHIGHinthehistoryoftheBank.Therisewitnessedwasof120%overthepreviousyearsfigureo
f
42.27crore.TherecordperformancewasaresultoffocusedeffortsofCOSMOSTREASURYTEA

Minforecastingofmarkets,continuousanalysisofvolatileGlobalandIndianmarketconditionsand
actingatthepropertimewithadisciplinedinvestmentapproach.
2.2.7FOREIGNEXCHANGETRADE
ForeignExchangeMarketexperiencedextremevolatilityinthewholeyearof201314whichsawIndianRupeedropping by 26% to the weakest level of 68.85 per USD in
August2013.Fearsof
emergingmarketsconcernsafterthetalkofTAPERING(RollBack)ofliquiditybyAmericanCentral
Bank,ourcountrysworseningMacroscausedpressureontheIndianRupee.Thedecisivemeasures
adoptedbytheGovernmentandRBIlike,restrictionsonGoldImport,attractingNRIInflowshelpedaug
mentForeignCurrencyreservesandnarrowdowntheCurrentAccountDeficitsubstantially.Alltheseeff
ortsboostedtheRupeetoregainsomeofitsloststrengthtoclosetheyearatlevelof`59.92,stillweakerby10
%.
Amidsuchchallengingconditions
in
201314,theBanksForeignExchangeBusinessincreasedacrossallthe
categorieslikeExport,Import,RemittancesandNRIDeposits.TotalForeignExchangeTurnoverincreas
edby15%to
11647.83Cr.fromthepreviousyearslevelof`10097Cr.Theincomegeneratedfromforexbusinesspor
tfolioroseto 30.16Cr.in2013-2014fromtheearlieryearslevelof 27.45Cr.Inthe last financial
year,theBanksNRIdepositshavereachedthelevelof
173.04Cr.asagainstthelevelof
`78.41Cr.ason31Mar2013,thusrecordingariseby121%.FocusedeffortsoftheBanksNRICellss
ubsequenttotheBanksparticipationinWorldMarathiMeetatBostonUSAinJuly2013,alsocontrib
utedtothegrowthinretailNRIdeposits.The Bank has been encouraging export credit business in
local as well as foreign currency since last two years which has resulted in a good rise in this
segment. The Banks Export Advance as on 31 Mar 2014 stood at 145.09 Cr. as against the
previous years level of 97.40 Cr. The Bank has also been widely extending facilities like
foreign currency loans, Buyers Credit to deserving customers.During the last financial year, the
Bank has started dealing in the British Pound, which has broadened the currency basket of the
Bank, which already has currencies like USD, EURO, JPY. This year, the Bank has established
an account relationship with a major European Bank i.e. Commerz Bank. The Bank has been
undertaking business with the help of arrangements/ relations with more than 100 overseas
branches of various foreign banks, private and public sector banks. All theseInternational
relationships have immensely contributed in widening the scope of the Banks foreign exchange
business till now.
2.2.8 REAL TIME GROSS SETTLEMENT (RTGS)
RTGS facility functions under Straight through Processing (STP) mechanism enabling
instanttransfer of funds to any bank without manual intervention. This facility is available in all
the branches of our bank. RTGS facility witnessed 2,64,390 transactions of our customers
amounting to 46,232 crore, and 6,965 inter-bank transactions amounting to 2,169 crore,
totaling to 2,71,355 transactions with a amount of 48,401 crore re-transacted.

Comparing with the previous year, volume of RTGS has gone up by 24% and 11% in terms of
number of transactions and amount respectively.
2.2.9 NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT)
NEFT facility works under
Straight through Processing (STP) mechanism enabling
hourlytransfer of funds to any bank without manual intervention. This facility is available in all
the branches of The Cosmos Bank. The Bank has also offered this facility to Internet Banking
users.In the year under report 9,58,243 transactions of customers amounting to 7,175 crore
have been carried out by Bank.Comparing with previous year, the volume of NEFT has gone up
by 57% and 67% in terms of number of transactions and amount respectively. In view of request
from customers, theBank does not levy any charges towards NEFT transactions made through
the Banks Internet Banking facility. Hence, members/account holders are appealed to take
maximum benefit of this facility.The Internet banking product has been developed by the Banks
subsidiary company Cosmos e-Solutions and services Pvt. Ltd. in association with KPIT
Cummins Info Ltd.
2.2.10 CHEQUE TRUNCATION SYSTEM (CTS)
To eliminate the associated cost of movement of the physical cheques, reducing the time
required for their collection and to reduce the scope for clearing related fraud or loss of
instrument in transit and to bring elegance to the entire activity of cheque processing, RBI has
introduced Cheque Truncation System. To align with the RBIs strategy and mission to
introduce safe, secure, sound and an efficient payment system, the Bank has implemented a
gateway called the Clearing House Interface (CHI) that enables the bank to connect and
transmit data and images in a secure and safe manner to the Clearing House (CH). The Cosmos
Bank has made substantial investment in the Cheque Truncation Software which interacts with
the Clearing House Interface (CHI).The Cosmos Bank is the first Bank who has CHI in
Pune.They have also made this facility available to their sub members as well as other banks.
With this facility being offered to customers, the Bank will be able to provide better customer
service with reduced operational risk in banking operations like clearing.
2.2.11AADHAAR PAYMENT BRIDGE SYSTEM & NATIONAL AUTOMATED
CLEARING HOUSE (APBS & NACH)
In addition to the NEFT and RTGS, the Bank has introduced the new payment mode using NPCI
through Bank channel. This payment service offered by the Bank using the Aadhaar number
issued by the Unique Identification Authority of India (UIDAI) is known as the Aadhar
Payment Bridge System and is referred to as APBS. APBS will be used for direct benefit
transfers, Credit transactions for government / Government agencies including social security
pension, payment under the employment guarantee scheme, public distribution system and

stipend to children returned to school, Janalaxmi Yojana, LPG subsidy and scholarships will be
covered under the Aadhaar payment bridge system.NACH is another payment service to
facilitate the interbank, high volume, electronic transactions which are repetitive anderiodic in
nature. NACH is available to the customers for making bulk transactions towards distribution of
subsidies, dividends, interest, salary, pension, etc. and also for bulk transactions towards the
collection of payments pertaining to telephone, electricity, water, loans, investments in mutual
funds, insurance premium etc.

2.3 DEBIT / CREDIT CARDS

2.3.1 RuPay DEBIT CARD
The Cosmos Bank is the first Co-operative bank to launch Indias First Domestic Card RuPay
Debit in coordination with NPCI. This card can beused at ATMS, selected POS in India as
well for e-Commerce transaction on the selected merchants. It can be used only with PIN hence a
more secured debit Card. This is a low cost product and bundled with customized product
offering. Also, this card offers inter-operability between payment channels and products.
2.3.2EURO, MASTER VISA CARD
The Bank has introduced the Cosmos Bank Chip Debit Card which is packed with comforts,
conveniences and the increased protectionagainst counterfeit and skimming card fraud. The
data stored in the chip cannot be accessed by any unauthorized person, thus making it virtually
impossible to copy or tamper with it. The EMV chip card also uses an encryption algorithm for
authorization, thereby making it difficult to counterfeit. The chip card continues to have a
magnetic strip along with the chip which will allow a customer to shop at merchants who do
not have a chip reading terminal.

2.4 MODERN BANKING TECHNIQUES

2.4.1 INTERNET BANKING
After the launch of the Cosmo Net internet banking service on the occasion of the Banks 107th
annual day on 18th January 2013, theBank has undertaken drives to penetrate the same among
different classes of customers. This service enables customers to enjoy banking services from
their place of residence or place of work. More than 35000 customers are availing Internet
Banking Facility. The bank offer secured IB facility through OTP as well as alerts for various
activities on the customers registered mobile and mail. Also, to increase the usability of
banking operations through net banking, many more functions like Bill payment, Bulk upload

facility on real time basis are added.The NEFT transactions done through Internet Banking to
other Banks account are now free.
2.4.2 MOBILE BANKING
The Bank has launched a full-fledged mobile banking service for its customers considering the
constantly increasing trend in the market to perform the e-Commerce transactions. It
hasbeenlaunchedon7th September2013,attheauspicioushandsof Governor of Sikkim, H.E Shri.
Shriniwas Patil, by donating amount to Shrimant Dagdusheth Halwai Ganpati Trust.
This service is available for all customers on all types of mobile phones. This service facilitates
customers to undertake funds transfer within or outside the Bank, recharging of the mobiles,
payment of Bills, view balance or account statements, request for cheque book etc. and that too
in a secured manner. More than 6000 customers are availing mobile banking facility.
2.4.3 POINT OF SALE
Considering customers demand and the market trend, Bank is planning to launch POS (Point of
Sale) facility. POS machines will be handed over to businessmen free of cost, who are customers
of our Bank. No commission will be charged to them for use of POS by their clients.

2.5 OTHER SUPPORT SERVICES

2.5.1 CURRENCY CHEST
The Cosmos Bank is the first and the only Co-operative Bank in Maharashtra to get the approval
for starting the Currency Chest. Accordingly, theBank has established a state of the art Currency
Chest at the new corporate office of the Bank. The Currency Chest is well equipped with modern
technology such as CC TVs, Smoke Detectors, Motion Detectors, Bio-metrical Access etc. The
Currency Chest was inaugurated by Hon. Vice Chairman of the Bank on 6th January, 2014.From
the date of inception upto 31st March 2014, the total cash turnover handled by the Currency
Chest is` 674.60 crore. Main functions of the Currency Chest are to provide fresh / sorted cash
and coins to all branches of the Bank, remove soiled notes from circulation and remit the same to
RBI, detection and impounding of forged notes etc. In the current financial year, all these
services will be made available to other Co-operative banks also.
2.5.2 DEMAT
The Cosmos Bank through its 89 branches out of a total of 134 and tie ups with 7 UCBs,
has been offering depositorservices toclients by virtue of being the Depository Participant of
National Securities Depository Limited (NSDL) and Central Depository Services (India)
Limited.In the last quarter of the year, the Bank received the approval from NSDL for merging

the Depository Business of Janalaxmi Co-op. Bank Ltd., Nashik. The merger procedure has been
initiated and in the year 2014-15, the Bank will be benefited by addition of 2500 DEMAT
accounts along with CASA business.During the current year, the Bank achieved major success in
Depository Operations. Depository Service Cell of Cosmos bank has achieved the prestigious
ISO 9001:2008 certification for the period 23rd December, 2013 to 16th December, 2016, from
renowned British Standards Institutes(BSI) under the Quality Management System. On 21st
February 2014, the Bank arranged a seminar on share market jointly with Maharashtra
Chittapavan Sangh, Pune and CDSL, Mumbai.While offering quality services to its clients, the
Bank has also contributed towards increasing awareness of investors by arranging Investor
Awareness Programmes at Pune & Mumbai with the help of CDSL officials.The Cosmos Bank
has been contributing towards Financial Inclusion by providing Basic Services Demat Account
(BSDA) facilityi.e. free Demat account to account holders. 500 clients have taken the benefits of
this BSDA facility.The Bank has proposed to IRDA (Insurance Regulatory and Development
Authority) through Central Insurance Repository Limited (CIRL) and National Database
Management Limited (NDML) to make Repository services available to our customers. Clients
can dematerialize their insurance policies after this facility is made available.In the last quarter of
2013-14, the Bank has applied to SEBI through NSDL, for permanent registration, so as to
enable offering of Depository Services on a continuous basis.
2.5.3 MUTUAL FUND
The Cosmos Bank has been offering opportunities to clients to invest in Mutual Fund schemes of
various fund houses by having tie ups with14 popular fund houses. Mutual fund services are
provided through 46 branches including Head office. The Bank gets feebased income from these
services by way of income sharing and this year the Mutual Fund business has earned fee based
income of ` 18.70 lakhs as compared to ` 8.71 lakhs of the previous year, thus registering rise of
114%.
2.5.4 INSURANCE BUSINESS
This Bank is a Corporate Agent of M/s Bajaj Allianz General Insurance Co. Ltd. and
Bajaj Allianz Life Insurance Co. Ltd. ForGeneral insurance & Life insurance business
respectively. Various products are made available to the Customers through these services. This
business has significant contribution in the other income of the Bank.Annual Audit of this
business was conducted in accordance with Insurance Regulatory & Development Authority
(IRDA) guidelines. The Auditors have certified that the working is satisfactory.
2.5.5 FRANKING
The bank hold a license from the Maharashtra and Gujarat Governments for the sale of
stamps.Bank members, account holders, citizens and other organizations as well as Banks have

been able to avail this facility from 22 branches of the bank. In the year under report, our bank
has sold stamps amounting to `353.06 Crore and has received commission of ` 1.97Crore.
The State Government has, with effect from December 2013 imposed certain restrictions on the
franking facility made available through Banks. The Bank will soon make available, the newly
introduced e-Stamping facility.
2.5.6 PAN CARD
Our Bank provides the PAN services across all the branches. The Bank plays the role of a
mediator between the customer and UTIservices by selling PAN forms to customers and sending
totally filled up PAN forms to UTI along with the necessary documents. 21720 Pan Coupons
were sold duringFY 2013-14 and commission earned on sale of PAN coupons is 1,52,362/-.

2.5.7 LOCALBODYTAX(LBT) COLLECTION

The Cosmos Bank is the first & the only Co-operative bank to receive the permission for
collectionof Local Body Tax (LBT) levied by Pune Municipal Corporation. A total collection of `
18.66 crore was made under this head.Vyapari Mahasangh, Pune had organized a grand seminar
in Pune on 16th October 2013, in which the Bank provided in-depth information about LBT &
related issues to the audience.After Pune Municipal Corporation, Amravati Municipal
Corporation has also allowed our Bank to collect LBT. The facility has been started w.e.f. 7th
January 2014.Besides LBT, the facility of collection of property tax of Pune Municipal
Corporation is also available at the Banks branches in Pune.
2.5.8 E-TAX PAYMENT
Our Bank has facilitated Electronic Tax Payment service to its customers since 2008. For
thesame, the Bank has entered into agreements with HDFC and IDBI. Customers can use this
service to pay TDS, Income tax, Sales tax, VAT, Service tax and Excise duty. In 2013-14 the
Bank has made 48004 transactions worth 632.73 crores through this service to the government.
2.6 BANKING CODES & STANDARDS BOARD OF INDIA (BCSBI)
Our Bank is a member of Banking Codes & Standards Board of India (BCSBI). As a member,
the Bank has adopted the Code of Commitment to Customers & Code of Banks Commitment to
Micro & Small Enterprises (MSE). The Bank is committed to follow the prescribed standards of
banking practice in dealing with customers.These Codes set the benchmark of services with
regard to time, quality, standardized forms etc. Adherence to these Codes automatically enables
the Bank to offer a higher level of services to its Customers. The Codes are displayed on the

website of the Bank for the information of customers. Training is imparted to staff about the
Codes & continuous improvement in customer service.The Annual Compliance Statement is
submitted to BCSBI every year as per requirement.
2.7 FINANCIAL INCLUSIONAND COST CONTROL INITIATIVES
In accordance with the RBI guidelines to offer Banking services to economically weaker sections
of the population, The Cosmos Bank is workingin Financial Inclusion field since last two
years.Initially, the formation & nurturing of Women Self Help Groups was started in association
with Unique Education Foundation. The number of Group members linked to the Bank has
reached 5500. Nearly, 500 Self Help Groups have opened their saving accounts in the Cosmos
Bank. The Bank is providing facilities like opening of individual No Frill accounts, Kidz
accounts, Basic & vocational training & marketing of Bachat Gat products etc to these Groups.
As a part of Financial Inclusion, the Bank has appointed Business Correspondents for providing
Banking services to the people, willing to avail such services but are not able to visit branches
due to their occupation or distance from the branch. These Business Correspondents will be
functioning in the areas allotted to them in relation to a Base branch. The support of technology
is provided to the Business Correspondents & the Android Tablets, Bio-metrics devices&
Thermal printers are made available for online banking facilities. The Project is presently in the
initial stage & it will definitely contribute in the business mobilization during the next Financial
Year. Under this project, customers can open new account, deposit or withdraw money from the
account without visiting the Bank.The Bank has effectively employed cost-control in its
expenditure in this financial year thereby using resources prudently. All employees have
supported this initiative by making diligent use of electricity, telephone and stationery. Regional
Offices and outstation branches are connected by video conferencing saving telephone expenses
and journey time and expenses of officers.
2.8 MANAGEMENT AND HUMAN RESOURCES
In the year under report, Shri. Vikrant Ponkshe, has supervised the working of the Bank, in the
capacity of Managing Director.In the year under report, a Retail Credit & Training Department is
started to boost the retails loans. An officer of the level of General Manager has been appointed
as Head of Retail Credit& Training portfolio.Taking into consideration the Banks expansion and
in order to ensure smooth functioning of the Banks activities, separate regions have been set up
at Pune, Mumbai, Gujarat and outside regions and a General Manager cadre officer has been
appointed as Regional Head to supervise over each of the region.With a view to transforming
strategy into performance, the Bank has put in place the four key elements of Structure, Culture,
HR policies and control systems. In the present context, business models have become complex
and the operating environment is highly competitive, which is beyond the capacity of an
individual to manage wide spread organizations. Thus, for long term viability and growth, an
organization needs to have Growth as a process and requires contribution from all the members

of an organization. Vision of the top management about organizational growth is shared with
other members of the organization, with a view to achieve goal congruence.As a result, goals set
by the Management are achieved during the Financial Year due to capability, commitment and
team work of Employees.Cosmos firmly believe and understand that the Future Orientation of
vision brings in its wake, the need for newskill sets and mind sets as well. Training is a tool for
achieving this objective. Training is an avenue for bringing people together, sharing of views and
ideas and building team spirit. Training has an ability to lift the organizational performance to a
much higher level. Imparting and enhancing skills for bringing about qualitative improvement is
yet another contribution of training.Training is a platform, which can be used very effectively by
an organization for communicating the vision of the top management to the grass root level
employees for achieving their whole hearted contribution for accomplishing the set goals. It can
also be used for ensuring Business Process Re-engineering and for promoting innovation.During
the year under reference, every effort was made to up-grade the skills and capabilities of the
staff, and inculcate team spirit.92 training programmes covering 2238 employees were conducted
in-house, covering a wide range of topics to enhance the skill and capability of the staff. In
addition to this, 142 employees were deputed to 44 training programmes conducted by
organizations like College of Agricultural Banking, Foreign Exchange Dealers Association of
India, National Federation of Urban Co-op. Banks and Credit Societies (NAFCUB), Vaikunth
Mehta National Institute of Cooperative Management (VAMNICOM), IIBF, National Payments
Corporation, Trinity Academy, Fintelekt, Bank of India, ASSOCHAM, IDRBT etc.To keep the
morale of the employees high and to ensure proper succession planning, promotion exercises are
being conducted regularly.During the financial year, as hitherto, the employee relations
continued to be cordial and healthy and strong.
2.9 BANKS RECOGNITION
Taking into considering the overwhelming response across India to RuPay Debit Card initiated
by National Payments Corporation of India (NPCI) through The Cosmos Bank, NPCI decided to
launch this card all over the country. On 8th May, 2014,H.E. Honble Pranab Mukherjee,
President of India, dedicated the RuPay Card to the entire nation at Rashtrapati Bhavan, New
Delhi in a formal function. On this occasion The Cosmos Bank was felicitated for successfully
implementing electronic payments through different electronic media. On this occasion our
Bank was represented by the Managing Director.The Banks savings bank accounts have been
linked to Aadhar. For this, ourthe Bank has made an agreement with NPCI. This agreement
has facilitated the linkage of all savings accounts in 134 branches across 6 states to
Aadhar.The BANCO award given to Co-operative banks was received by the Bank for
superlative service to customers, deposit, loan and recovery portfolios. M/s Infosys, for the first
time announced Finacle Innovation Award. The Cosmos Bank bagged the award in Best
Innovative Customer Process category.