Mangalore: MCC Bank Prepares to Celebrate Centenary Jubilee
Daijiworld Media Network—Mangalore (RD/CN)
Mangalore, May 1: The centenary jubilee celebration of Mangalore Catholic Co-operative (MCC) Bank will be inaugurated at Milagres Hall on Sunday May 8.
Bishop Dr Henry D’Souza of Bellary will preside over the Eucharistic celebration at the Our Lady of Miracles parish, Milagres, at 9.30 am on Sunday. Bishop Dr Aloysius Paul D’Souza of Mangalore will preside over the celebration.
The Board of Directors of MCC Bank have designed a wide variety of banking services for the benefit of shareholders, customers, and the Bank staff to mark the centenary jubilee celebrations which will be launched on the occasion.
History of the Bank:
MCC Bank was registered as Mangalore Catholic Co-operative Society on May 8, 1902 with 67 shareholders. The first general body meeting of the Society was held at the Catholic Union Club here on May 9, 1912. P F X Saldanha was elected as chairman, Simon Alvares as deputy chairman, J M Castelino as secretary and treasurer. In the initial years, those who floated the Society invested in it. Their investment grew to Rs 50,000 in 10 years time and Rs 1,92,851 in 25 years. It reached Rs 20,87,110 in 50 years and currently the share capital exceeds Rs 5 crore.
MCC Bank had the prime objective of advancing loans to its shareholders during their need. Initially it was fixed at Rs 1,000 and was hiked to Rs 5,000 in 1923 and later to Rs 10,000 in 1933. The Society advanced loans to buy housing sites, house construction, for educational needs, and weddings of the shareholders. Meanwhile, the administrative office of the Society was set up in its own building located at the current location in the heart of town on March 27, 1927, and rechristened itself as MCC Bank and began to conduct full scale banking.
Melwyn D'Cunha, Chairman; Dr Edward Nazareth, Vice-Chairman
Financial difficulty and recovery:
The Bank that was surging steadily in business faced financial difficulty at the turn of the century in 2000. Many of the financial institutions also faced financial adversity and a few of them became bankrupt. The Mangalorean community supported the Bank during the financial crisis and was able to recover.
Members who contested under the leadership of Melwyn D’Cunha in the elections held during March 2008 have won the elections. At that time, the Bank had deposits of Rs 92 crore and loans advanced were Rs 42 crore. The Bank earned substantial profit during 2009–10 and was able to pay dividend to shareholders who were not paid since 2002.
The fixed deposits touched over Rs 165 crore in the accounting year ended March 31, 2011, with loans and advances of Rs 107 crore. It is significant that all the 16 branches of the Bank recorded profits this year. The profits are estimated to be nearly Rs 2 crore with a significant drop in non-performing assets (NPA) up to 0.25 percent.
The Bank has been leading to progress under the leadership of the board of directors. It has opened new branches with its campaign to take banking to the doorsteps of customers. The branches at Morgan Gate, Shirva, B C Road, Suratkal, and Kulshekar have been shifted to spacious premises to offer customer-friendly banking services. The modernization of the administrative building and its Hampanakatta branch is going on at a rapid pace.
The Board of Directors stood by their promise not to indulge in partying at the cost of the Bank, and forgoing allowances till the Bank makes substantial profits to pay dividends to its shareholders. The salaries of Bank staff were not hiked for many years till October 2010. The staff was also paid a 20 percent bonus and the Board has plans to continue to pay in the future too.
‘Owning a Car’ Plan to Mark Centenary Jubilee Celebrations:
There are several in the community who work as drivers and are interested in owning their cars. A new plan – ‘Own a Car’ will be launched on Sunday May 8 to mark the centenary jubilee celebrations of the Bank.
Under the prevailing automobile loans segment, the seeker of a car loan has to arrange 20 percent of margin money on the showroom price/ on road price. Under the own an automobile scheme, one has to deposit just 10 percent while taking delivery of an automobile.
Philanthropist NRI Ronald Colaco had initially contributed Rs 40,000 each to 25 customers to help the community members realize their dreams of owning an automobile. The customers benefited from the generosity and the automobile showrooms also assured an additional Rs 10,000 concession, thus helping each customer save Rs 50,000. The Bank will advance automobile loans on easy instalments at 2 percent interest rate which is lower than the other financial institution. It is hoped that the plan will benefit many.
The plan will be applicable to Catholics who own a driving licence and earn a living by running an automobile for hire. Those people who have experience working in the rent-a-car business can own their car to earn their living and pay the Bank’s monthly instalments. The assistance of parish priests across Mangalore diocese has been sought to identify them. Additional information in this regard is posted at the Bank’s various branches and also in the administrative office.
‘Feel Secure Centenary Deposit’:
The Bank will launch ‘Feel Secure Centenary Deposit’ beginning from May 10 for 2 months to mark the centenary jubilee celebrations. A customer who deposits Rs 1 lac and above under this plan will be paid an interest of 10 percent per annum subject to terms and conditions. The information in this regard is displayed at the various branches
An Account for Every Family:
The Bank aims to embark on opening an account in every household family within the community. The campaign, to invest in the Bank’s shares and deposit schemes and avail loans in case of financial need will go on for a year.
The Bank will organize a Konkani musical concert with generous contributions from philanthropists at locations where it has branches to popularize the plan. The chief objective of the Bank lies in supporting Konkani artistes and its concern for the community besides educating the community on various banking services offered by the Bank. The Bank also has plans to organize ‘Meet the Customer’ programmes in as many branches of the Bank as possible during the centenary year. This programme enables the shareholders to meet the board of directors to give their valuable suggestions for the growth of the Bank.
Benefits to Shareholders and Bank Staff:
The board of directors has declared a dividend of 8 percent in the last accounting year and it was proposed that more dividends be declared this year. The decision on the dividends will be announced after the approval from the concerned governing authority shortly.
Although the Bank can afford to give more dividends from the profits, there are a few key aspects that have to be done to maintain competitiveness in the banking sector. The computers in a few branches need to be replaced and a few branches need to be relocated while others need modernization. The board of directors is planning to improve infrastructure on par with other banks in the future.
The Bank has plans to give gifts in cash subject to approval from the governing authority. The board of directors has also decided to motivate the branch staff by setting a target and rewarding those branches which achieve the target.