Karnataka based Tumkur Grain Merchants Cooperative Bank, which is currently grappling with high levels of non-performing assets (NPAs), is making earnest efforts to bring down its gross NPA, which currently stands at around 21 percent to below 9 percent by the end of the current financial year.
The bank is also aiming to regain the coveted Financially Sound and Well Managed (FSWM) status.
In addition, the bank is hopeful of being released from the Supervisory Action Framework (SAF) as its financial health continues to improve. Efforts are also underway to convert the bank into a Small Finance Bank (SFB), which the management believes will accelerate growth and enable the provision of advanced banking services.
However, the dream of becoming an SFB may take some time to materialize, as the bank must first strengthen its financial position and meet the regulatory requirements.
In a conversation with Indian Cooperative at the bank’s office in Bangalore, General Manager Rajashekar N said, “We are making every effort to elevate the bank to new heights. Several strategic initiatives have been adopted to strengthen the bank, which was significantly impacted by the COVID-19 pandemic and the downfall of several urban cooperative banks such as Sri Gururaghavendra Cooperative Bank and National Cooperative Bank.”
He further noted that the bank’s business mix stood at approximately Rs 2,400 crore as of 31 March 2025, with a target of reaching Rs 3,500 crore within the next three financial years. Currently, the bank operates 28 branches, mostly located in Bangalore, and is focusing on consolidation for more efficient service delivery.
To enhance its technological infrastructure, the bank is in the process of upgrading its Core Banking System (CBS) to the TCS BaNCS Global Banking Platform. The implementation is expected to be completed in the next couple of months.
Expressing optimism about the SFB conversion, Rajashekar said, “Transforming into a Small Finance Bank will empower us to grow rapidly and provide advanced financial services to our customers. It will also bring broader operational freedom and improve credibility.”
The bank also plans to contribute towards the share capital of the National Urban Cooperative Finance and Development Corporation (NUCFDC), an umbrella organization for urban cooperative banks.
Highlighting the bank’s financial performance, Rajashekar emphasized that Tumkur Grain Merchants Cooperative Bank has shown steady recovery. “Despite past accumulated losses, we have been posting consistent profits in recent years. For FY 2024–25, we recorded a gross profit of Rs 25.78 crore and expected a net profit of Rs 15.46 crore. Last year, we successfully wiped out all accumulated losses and declared an 8.5 percent dividend. This year, we aim to increase the dividend to 10 percent,” he stated.
As per unaudited figures, the bank’s deposits and advances stand at Rs 1,414 crore and Rs 995 crore respectively, with a strong Capital to Risk-Weighted Assets Ratio (CRAR) of 23.92 percent. The bank’s net worth is estimated at around Rs 209 crore.
With a solid recovery roadmap, focus on modernization, and a vision for future expansion, Tumkur Grain Merchants Cooperative Bank is steadily paving the way for its transformation into a stronger and more dynamic financial institution.
