Maharashtra’s Mumbai based Bharat Co-operative Bank Limited has scripted a remarkable six-year financial turnaround, moving from a challenging post-pandemic phase and regulatory restrictions to a position of renewed profitability, stronger capital adequacy and expanding business.
The bank, which reported a massive net loss of Rs 149.39 crore in FY 2022–23, bounced back with a net profit of Rs 77.01 crore in FY 2025–26, marking a significant recovery in its financial performance.
The turnaround also saw the bank exit the Reserve Bank of India’s Supervisory Action Framework (SAF) and regain Normal Banking Status in 2025, overcoming regulatory challenges arising from retrospective provisioning requirements relating to Security Receipts held against assets transferred to Asset Reconstruction Companies (ARCs).
The bank’s latest performance figures, as on September 30, 2026 (unaudited), further underline the momentum. Its total business crossed the Rs 20,000-crore milestone, reaching Rs 20,812.02 crore, compared with Rs 19,845.79 crore at the end of March 2026. This represents an increase of nearly Rs 966 crore in just six months.
Deposits rose to Rs 12,470.89 crore, while gross advances reached Rs 8,341.13 crore during the period. The bank’s financial recovery is equally visible in its annual performance. After the exceptional loss in FY23, it returned to profitability with Rs 11.78 crore in FY24, Rs 36.05 crore in FY25 and Rs 77.01 crore in FY26. Operating profit stood at Rs 144.51 crore in FY26.
Capital strength also improved, with the Capital to Risk-Weighted Assets Ratio (CRAR) reaching 14.17% as on March 31, 2026, against 12.63% in FY23. Maintaining an ‘A’ audit rating throughout the six-year period, the bank also declared a 10% dividend for FY26, reflecting its improved financial position.
The turnaround has been accompanied by a renewed focus on customer service, technology and risk management.
The bank has received several industry recognitions, including awards from the Indian Banks’ Association, IBSi Global FinTech Innovation Awards and the All India Co-operative Banking Summit 2025 for its digital initiatives, IT risk management and cybersecurity.
Describing customer confidence as a major pillar of its recovery, the bank noted that the continued faith and support of customers helped it withstand even the difficult period following adverse newspaper coverage in February 2025.
From navigating regulatory challenges to restoring normal banking operations and crossing Rs 20,800 crore in total business, Bharat Co-operative Bank’s journey stands out as a significant turnaround story in India’s urban cooperative banking sector.
