Kangra Co-op Bank recovers from Covid shocks; vows to diversify

Delhi based leading UCB- Kangra Cooperative Bank which was grappling with the aftershocks of Covid-19, has slowly recovered itself from the crisis. It suffered because its main lending is the transport sector which had shut down during the pandemic.

“At present the bank is not only focusing on recovery of loans but also planning to diversify its business. Despite many odds, we succeeded in reducing the NPA levels in the 2021-22 FY which had been increased due to pandemic”, said its Chairman Laxmi Das.

He further added, the Net NPA of the bank has been reduced from Rs 6.58 percent (2020-21) to 3.58 percent as of 31st March 2022. The gross NPA has also come down below 11 percent. Besides, in the 2021-22 FY, there is a slight decrease in deposits and loans and advances but we are hoping that at the end of the current financial year, we will see upsides”, he asserted.

The total business mix of the bank is Rs 1782 crore in the 2021-22 FY.

As of 31st March 2022, the deposit and loans and advances stood at Rs 1205.88 crore and 577.37 crore respectively. The bank earned a gross profit of Rs 12.21 core and net profit to the tune of Rs 7.28 crore. The CRAR stands at 14.08 percent.

“Though we are also eyeing to achieve the Multi State Status, due to the higher Gross NPA level, we can’t do it. But, in the current financial year, we are focusing on decreasing it and will hopefully apply it in the next financial year”, he underlined.

Readers would recall that the bank has constituted the board of management in addition to the board of directors and the approval for the same has been sent to RBI and Registrar.

All the branches of the bank are fully computerized with CBS. The implementation of CTS, NEFT/RTGS, ATM has already been done. The bank has 12 branches across Delhi.

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