The Mehsana Urban Cooperative Bank (MUCB), one of Gujarat’s prominent cooperative lenders, reported a mixed performance for FY 2024-25. While profitability declined due to higher provisioning, deposits and investments showed modest growth, reflecting the Bank’s continued stability.
In light of current challenges, the Board decided not to declare a dividend for the year, prioritizing capital retention and balance sheet strength.
The Bank’s total business stood at Rs 15,222.48 crore as of March 31, 2025, with 43 branches recording a business mix of over Rs 100 crore and 28 branches surpassing Rs 200 crore. Deposits rose to Rs 9,245.15 crore, including CASA deposits of Rs 2,854.24 crore, a key low-cost funding source. Advances stood at Rs 5,977.33 crore, reflecting a cautious lending approach aimed at improving asset quality.
Profitability came under significant pressure, with net profit declining to Rs 38.57 crore, compared to Rs 122.95 crore in the previous year. Operating profit before provisions was Rs 196.51 crore. The management attributed the decline to higher provisioning, a strategic step to reinforce financial discipline and safeguard the Bank’s future.
Despite the dip in profits, MUCB maintained a strong financial position with a net worth of Rs 780.86 crore and a healthy CRAR of 16.23%. Investments grew to Rs 4,311.28 crore, generating Rs 10.64 crore from trading in government and non-SLR securities, with no non-performing investments reported.
Looking ahead, MUCB projects total business of Rs 16,936.24 crore for FY 2025-26, with deposits expected at Rs 10,364.53 crore and advances at Rs 6,571.71 crore. Retail lending is set to expand, with housing loans rising 32.5% and vehicle loans by 40%. Operating profit is targeted at Rs 266.76 crore.
Speaking to Indian Cooperative, newly-elected Chairman Dahyabhai Manchanddas Patel expressed optimism about the Bank’s future. “Our focus is on reviving the bank’s performance, improving asset quality, and restoring depositor confidence. We are taking active steps to strengthen financial health and ensure sustainable growth,” he said.
Since assuming office, Chairman Patel has personally facilitated a Rs 10 crore deposit from his company, Perfect Infracorp Pvt. Ltd., signaling strong backing for MUCB’s stability and growth.
With a clear roadmap and proactive leadership, the Bank is well-positioned to strengthen its presence in Gujarat’s cooperative banking sector while delivering value to its members.
