In a historic development, the Reserve Bank of India (RBI) has granted the Maharashtra State Cooperative Bank (MSCB) permission to issue Rs 500 crore in 10-year long-term bonds, marking a first in the bank’s history.
This approval comes as MSCB has consistently met all financial and regulatory benchmarks, reinforcing its position as a robust and high-performing cooperative bank, says Vidyadhar Anaskar, Administrator in a press release.
MSCB has recorded impressive financial growth over the past five years, with profits rising steadily. In 2022, the bank posted a profit of Rs 603 crore, which increased to Rs 609 crore in 2023 and further surged to Rs 615 crore in 2024. The bank’s Capital Adequacy Ratio (CAR) stands at 16.34%, well above the RBI’s regulatory requirement and national standards.
Additionally, MSCB’s management expenditure is significantly lower than the national average, standing at 0.55% compared to the national benchmark of 0.98%. Its business per employee is Rs 76.15 crore, more than double the national average of Rs 35.74 crore.
Similarly, business per branch is Rs 1,004.64 crore, which is 4.5 times the national benchmark of Rs 272.15 crore. Notably, MSCB is the only cooperative bank in India with a net worth exceeding Rs 5,000 crore.
Recognizing this exceptional financial performance, the RBI has approved MSCB’s bond issuance to further strengthen its capital base. The bond offer process will commence soon, with a minimum investment of Rs 10,000 for individual investors and Rs 50,000 for institutional investors.
These funds will be added to MSCB’s capital reserves, enhancing its financial strength and bolstering the three-tier credit system, ultimately benefiting farmers, cooperative societies, and other stakeholders. The bank is confident that this move will further cement its position as a leader in the cooperative banking sector.
