Page 46 - Banking Finance August 2017

ARTICLE

Premium Income 4,844 5,640 5,718 7,312 8,229 9,199
Investment income 1,801 2,353 2,768 3,390 4,032 4,783
Revenue Surplus 4,132 4,054 5,827 6,072 9,696 9,596
Fund balance 3,774 4,768 5,265 5,068 5,207 5,412
Fund Surplus 20,930 25,325 30,855 35,549 45,246 54,842
Outstanding Liab for Claims 603 689 905 392 314 252

Bank group wise Deposits (2015-16) ceived premium income of 9199 crores which seemingly
has been calculated at the level of assessable deposits
(Deposits in Crores)
whereas the eligible deposit for the calculation and pay-
Type of Bank No of Assessable Insured ment of premium logically should have been the insured
Banks Deposits Deposits deposit which the corporation shall be paying eventu-
Commercial Banks 97 84,836 23,271 ally in the event of a claim arises if at all. With the in-
w/w SBI group 6 19,176 7,115 sured deposits, the premium amount works out to be
2826 crores approx @ 10 paise per 100 of present pre-
Public Sector Banks 21 42,644 12,309
mium rate.
Foreign Banks 45 4,342 119
Y Corporation has received a sum of 4783 crores as the
Private Banks 21 18,653 3,721
income through investments in the government securi-
Local Area banks 4 22 8 ties wherein the corporation is authorized by the Act
RRBs 56 2,641 1,624 to park its surplus funds.
Coop Banks 1974 6,575 3,368 Y Corporation has revenue surplus of 9596 crores as of
Total 2127 94,053 28,264 March 2016.
Y Corporation has a fund surplus of 54842 crores as of
Details of premium paid and Claim March 2016.

Settled during 2015-16 Y During the year corporation has paid claims of 47 crores
(Rs in crores) whereas since its inception i.e 1962, corporation has
Premium Income Paid Claim Settled paid a total of approx 5000 crores of claims within which
the claims paid on account of Commercial Banks+ have
Commercial Coop Commercial Coop
been approx 295 crores and that of Cooperative Banks
Banks/RRBs/LABs Banks Banks Banks
have been 4680 crores.
8551 (93%) 648 (7%) 0 47.14
Y Proportion wise, the share of banks other than Coop-
Total 9199.00 47.14 erative banks in the payment of premium as on
31.03.2016 has been 93% whereas that of cooperative
Observations :
Banks has been mere 7 %, while on the other hand, the
Through a cursory look at the figures for the FY 2015-16 claim amount of 47 crores paid by the corporation
taken from the Annual report of the corporation and repro- during the year under reference has been 100% of
duced herein above, it is observed that Cooperative Banks and 0% for the other segment of
Y As of March 2016, out of total assessable deposits ( i.e Banks.
total deposits of banks net of inter-bank deposits etc)
of 94,05,300 crores, the insured deposits stands at Points to ponder:
28,26,400 which are approx 30% of assessable depos-
Y The premium amount collected by corporation for the
its.
assessable deposit instead of the insured deposit poses
Y During the year under reference, corporation has re- a question of logic.

46 | 2017 | AUGUST | BANKING FINANCE

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