Mumbai-based Abhyudaya Co-operative Bank Ltd. has reported a strong financial turnaround for the year ended March 31, 2026, with profitability rising sharply and bad loans declining significantly, indicating that the bank’s revival efforts are yielding tangible results.
The multi-state scheduled urban co-operative bank nearly doubled its net profit to Rs 10.11 crore in FY 2025-26 from Rs 5.22 crore in the previous financial year. Even more striking was the surge in Profit Before Tax (PBT), which jumped by over 176 per cent to Rs 96.33 crore, compared to Rs 34.87 crore a year ago.
The improved profitability was accompanied by a notable reduction in stressed assets. The bank’s Gross Non-Performing Assets (GNPA) fell by more than Rs 106 crore, declining from Rs 949.01 crore to Rs 842.42 crore during the year. Net NPAs registered an even sharper fall of nearly 28 per cent, dropping from Rs 253.25 crore to Rs 182.16 crore.
The decline in bad loans reflects the bank’s aggressive recovery drive, stronger credit monitoring mechanisms and prudent risk management practices.
Another encouraging development was the improvement in the bank’s balance sheet strength. The Provision Coverage Ratio (PCR) increased from 73.14 per cent to 78.20 per cent, while the Capital to Risk-Weighted Assets Ratio (CRAR) rose substantially from 3.62 per cent to 6.46 per cent.
A key indicator of the bank’s revival journey was the sharp improvement in its net worth position. The negative net worth reduced from Rs 157.87 crore as on March 31, 2025, to Rs 29.21 crore a year later, an improvement of nearly Rs 129 crore. The management expressed confidence that the bank would return to a positive net worth during the second quarter of the current financial year.
Commenting on the performance, the bank’s management said the substantial increase in profitability, continued reduction in NPAs, stronger provisioning and improved capital adequacy demonstrate the effectiveness of its turnaround strategy.
With profits rising, bad loans shrinking and capital strength improving, Abhyudaya Co-operative Bank is steadily moving out of a prolonged period of financial stress and strengthening its position for sustainable growth in the years ahead.
