Andhra Pradesh’s Rajamahendravaram based Innespeta Cooperative Bank though small in size but intends to contribute towards the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), which will serve as an umbrella organization for Urban Cooperative Banks (UCBs).
“We are fully committed to contributing to the Umbrella Organization being set up at the national level and are awaiting a call from the Andhra Pradesh Urban Cooperative Banks Federation. This organization will not only propel UCBs forward but will also help small UCBs like ours adopt common software,” said Chairman Kolla Atchutha Rama Rao.
Speaking to this correspondent at the bank’s headquarters, Rao emphasized, “Although we are a small bank, we strictly adhere to all RBI rules and regulations. We are sincerely working to elevate the bank and meet the financial needs of the underprivileged,” he remarked.
He further added, “We are all set to launch the ATMs facility and mobile banking for our customers in the coming days. At present the bank has a network of three branches but plans to open two more branches at the end of the current financial year. We are Financially Sound and Well Managed Bank (FSWM)”, Rao said proudly.
“Though, he was a bit disappointed with the RBI’s attitude towards urban cooperative bank. Instead of taking stringent action against them , RBI should also take some initiatives in encouraging urban cooperative banks which are working for the poor people of society”, the Chairman asserted.
Coming to the bank’s financials, as of 31st March 2024, the bank’s deposits stood at Rs 141.06 crore and advances were Rs 95.70 crore, bringing the total business to Rs 236.76 crore.
The bank also made significant progress in reducing its Non-Performing Assets (NPA) during the financial year. The gross NPA decreased from 4.43% in FY 2022-23 to 2.76% in FY 2023 24, while net NPA dropped from 1.31% to 0.26%. The bank is striving to bring the net NPA to zero.
In terms of financial health, the bank’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 12.24%, and its average net worth was Rs 10.97 crore as of 31st March 2024. The bank earned a gross profit of Rs 4.15 crore and a net profit of Rs 1.14 crore in FY 2023-24.
