Despite adverse market conditions Maharashtra based Multi-State Scheduled Bank- Abhyudaya Cooperative Bank has performed well on almost all the financial parameters in 2019-20 financial year except there is a decrease in net profit.
Giving reaction on the financial report of the bank, Premnath S Salian, Managing Director of the bank said, “If we see overall we have performed well on all the financial parameters and our total business increased from Rs 16,820.56 crore as on 31st March 2019 to Rs 17492.44 crore in 2019-2020 FY. In the wake of the PMC Bank episode there is a slight decrease in deposit of the bank as on 31st March 2020”.
“Besides, the net profit of the bank has decreased from Rs 21.58 crore to Rs 16.22 crore in 2019-2020 because we have made a provision from our profits. The deposits of the bank reduced from Rs 11,022.31 crore to Rs 10,838.07 crore whereas the loan and advances of the bank grew from Rs 5,798.25 crore to Rs 6,654.37 crore as on 31st March 2020”, he informed on the phone.
The paid-up share capital of the bank increased from Rs 147.84 crore to Rs 161.62 crore and reserves hiked from Rs 1,183.34 crore to Rs 1,218.69 crore as on 31st March 2020. “Despite the corona scare, the bank has also performed well in reducing its Net NPA to less than three percent and gross NPA to less than 7 percent.
“We are trying to regain the faith of the customers which was lost due to the PMC bank scam”, Salian underlined who is MD of the fourth largest UCB of India.
The Bank has maintained a ratio of CASA Deposits to Total Deposits as high as 37.55%. The Capital Adequacy Ratio maintained by the bank is as high as 12.60%. The bank has a network of 111 branches across different states. Out of which 34 branches are rendering all seven days a week service to the customers.
Readers would recall that the bank hogged the media headlines in the month of August this year when a message was viral in social media. It read: “If anyone has their accounts in Abhyudaya bank, transfer all your funds to other banks. Even from NKGSB bank”.
The depositors have withdrawn up to Rs 140 crore in two days as soon as the rumors went viral on social media questioning the financial status of the bank. Many have even broken their Fixed Deposits before maturity.