Due to the adverse market conditions, the cooperative sector has experienced many ups and downs yet the second largest urban cooperative bank in the country- Cosmos Cooperative Bank has performed rather well in the financial year 2019-20. The total business mix of the bank stood at Rs 26,698.24 crore as on 31st March 2020.
The UCB organized its 114th Annual General Meeting on 23rd November 2020 through video conferencing recently where it transpired that due to the lockdowns, the expected recovery in NPA got stalled thereby increasing the burden of NPA on the bank.
Talking to Indian Cooperative Group Chairman Dr Mukund Abhyankar said “Sadly, due to the cyberattack, dividend for the FY 2019-20 has not been recommended. “We have decided not to distribute dividend until the entire amount lost due to the cyber-attack is provided for”, informed its Group Chairman Mukund Abhyankar to this correspondent on the phone.
“We will make efforts to recover the losses till 2021 and will also start paying dividend to the shareholders. Due to the cyberattack we are facing these challenges but we are sure we will come out of this by the next financial year. Though we have recovered about Rs 5 crore, 90 crores is yet to be recovered”, Abhyankar added.
Coming to this year’s report card prepared in the continuing unfavourable circumstances, the provision of Rs 313.38 crore had to be made and the Cosmos Bank faced loss of Rs 54.34 Crore. Considering other provisions, the net loss stands at Rs 35.84 Crore. In the next year, efforts will be made for recovery in NPA accounts to register net profit, claimed its Chairman Milind Kale in the annual report of the bank.
In the wake of financial scams in the PMC Bank and Yes Bank, depositors chose to withdraw their deposits from cooperative banks in large numbers. During this phase, some deposits of the bank reduced but due to the trust shown by investors in the bank they have increased to Rs 15,195.09 Crore by 31st March 2020. Earlier i.e. in 2018-19 it was 15,353.04 crore.
During the year under review, the Loans and Advances of the Bank stood at Rs 11,503 crore from last year’s Rs 11,599 Crore. Loans & Advances decreased by Rs 96 Crore i.e. 0.83%. Loans of Rs 292.03 crore were written-off and Loans of Rs 19.11 crore was prudently w/off during the year for which 100% provision was made.
In the 2019-20, the bank has recovered Rs 167.59 cr in NPA and Rs 120.44 cr in Write-off Accounts thus the total amount of recovery being Rs 288.03 Crores. Also, accounts, amounting to Rs 6.72 cr have been upgraded.
At the end of March 31st 2020, the percentage of overdues was 7.25%, gross NPA was 9.41% and net NPA was 7.15%. The Bank has decided to reduce non-performing loans (NPLs) by adopting the challenging target of maximum recovery by taking action under various laws.
The bank has set a total recovery target of Rs 488.67 Crore for the financial year 2020-21. The Credit Deposit (CD) Ratio as on 31st March 2020 stood at 75.70%. The percentage of loans with own funds plus deposits was 68.69% as on 31st March 2020 which was as per the RBI guidelines.