Rajasthan State Cooperative Bank has performed well on almost all the financial parameters in the 2022-23 financial year but it failed to achieve a higher deposits base as on 31st March 2023 in comparison to the 2021-22 FY.
The deposits of the Bank have decreased by Rs 600cr. It declined from Rs 3828 crore (2021-22) to Rs 3227 crore as on 31st March 2023.
Elaborating on the reasons behind the decline in the deposit base, Bank Managing Director Bhomaram said, “Many DCCBs in the state have parked their deposits in commercial banks in lieu of earning a good rate of interest on their deposits. We have asked the DCCBs to deposit their money in the apex bank and assure them to give good ROI. We are hoping the situation will be good till the end of the current FY”.
“Besides, we are also upgrading the internal system of the bank. We are planning to improve the condition of ATMs and to distribute Rupay Debit Cards. The introduction of mobile banking and net banking is in the pipeline”, said Bhomaram to this correspondent on the phone.
The bank also maintained the tradition of achieving ‘Zero’ net NPA again in the 2022-23 FY. The gross NPA of the bank decreased from 0.22 percent to 0.19 percent.
Due to the impact on the deposits, the business mix of the bank also got reduced. The business mix decreased from Rs 12,365 crore (2021-22) to Rs 12,061 as on 31st March 2023.
The loans and advances of the bank increased from Rs 8537 crore (2021-22) to Rs 8834 crore (2022-23). During the year, the bank earned a net profit to the tune of Rs 73.07 crore in the 2022-23 FY. Earlier i.e. 2021-22, the net profit of the bank was Rs 70.87 crore.
As on 31st March 2023, the Share Capital and Reserve & Surplus stood at Rs 439.55 crore and Rs 783.02 crore respectively. The CD Ratio of the bank stood at 273 percent.
The Rajasthan State Cooperative Bank Ltd. (RStCB) has 16 branches out of which 12 are in Jaipur and one each at Jodhpur, Udaipur, Bikaner & Kota.
At the District level 29 DCCBs are covering 33 Districts of the State having 444 Branches. And at the grass-roots level 7028 PACS/LAMPS, cover 100% of the geographical area of the state. More than 5300 PACS are also having the status of Mini Bank and collecting deposits from their members.
It bears recall that a few days back, Rajasthan State Cooperative Bank drew the media attention for cancelling the tender related to supply of equipment for PACS computerization, three times in a pre-planned manner. The bank Managing Director Bhomaram has been accused of earning heavy commission and helping the foreign company. The news was widely covered by Bhadas4Media, a web news portal.