Maharashtra based Multi-State Scheduled Bank- Abhyudaya Cooperative Bank failed to perform well on several financial parameters in the 2020-21 FY. The profit of the bank has decreased by over 12 crore and the Gross and Net NPA levels have increased. The bank organized its 58th Annual General Meeting on 30th September 2021 at Navi Mumbai.
The bank’s board of directors has also shown inability to disburse dividend to the shareholders for the year 2020-21, due to inadequacy of distributable profits. But the good thing is that despite Covid-19 challenges, the bank crossed business of more than 17,500 crore as of 31st March 2021.
When Indian Cooperative contacted the Bank’s MD Premnath S. Salian, for his comment on the bank’s financial report, he did not respond to the queries raised by this correspondent. Later on, efforts to contact the bank’s Chairman Sandeep S. Ghandat also failed.
Meanwhile, the total business of the bank increased from Rs 17,492 crore in the 2019-20 FY to Rs 17,663 crore in the 2020-21 FY. The deposits of the bank grew from Rs 10,838 crore to Rs 10,952 crore whereas loans and advances rose from Rs 6,654 crore to Rs 6,711 crore as of 31st March 2021.
The bank earned a net profit of Rs 3.55 crore in the 2020-21 FY. Earlier, it was Rs 16.22 crore. The annual report reads, “During the year the bank has earned a gross income of Rs 1109 crore as against Rs 1089 crore in the previous year. The bank had to make a provision of Rs 5.57 crore towards BDDR from the current year’s profit. So the net profit available for appropriation for the year, after making provision as required under MSCS amounted to Rs 3.55 crore as against Rs 16.22 crore in the previous year,” it reads.
During the FY 2020-21, the gross NPAs have increased to 11.66 percent and Net NPAs to 7.76 percent. As of 31 March 2020, the gross and Net NPAs were 6.91 percent and 3.82 percent respectively. “The bank claimed that due to the outbreak of Covid-19 and extended lockdowns, the recovery of loans and advances has been badly affected during the 2020-21 FY.
The paid-up share capital of the bank increased from Rs 161.63 crore to Rs 167.67 crore and the working capital grew from Rs 12,600 crore to Rs 13,155 crore as on 31st March 2020.
The bank has a network of 111 branches in many states, out of which 59 branches are rendering all seven days a week service to the customers.