When other cooperative banks are grappling with the aftershocks of Covid-19, Maharashtra state cooperative (MSC) bank succeeded in achieving the 0% Net NPA and earned a net profit of Rs 325 crore in the 2019-2020 FY, the highest ever in the history of the bank.
Jubilant Vidyadhar Anaskar, Chairman of Administrative board of MSC Bank said, “For the first time in the history of 109 years, the MSC has surpassed many records for the FY ended on 31st March, 2020. The Bank’s total business rose from Rs 35,439 crore to 41,666 crore in 2019-20 FY”.
He further added that the loans and advances increased from Rs 19,600 crore to Rs 20,817 crore and deposits have risen from Rs 15,840 crore to Rs 20,849 crore in 2019-2020 financial year.
It is to be noted that on 7th May 2011, RBI had superseded the board of the bank and appointed the Board of Administrators owing to the deterioration in financial position of the Bank. At that time the Bank had a net loss of Rs.1,069 crore but now under the chairmanship of Vidyadhar Anaskar the bank earned a net profit of Rs 325 crore which is the highest ever in the history of the bank.
In the backdrop of Covid-19, the bank has introduced “Atma Nirbhar Karj Yojana” under which borrowers will be provided with 25% of their total outstanding loans as on 31st March, 2020 for the period of 5 Years with 1 Year Moratorium period.
Besides, the bank has been awarded Audit class ‘A’ for the past 7 Years and paying 10% Dividend from the last 6 Years. The Bank has maintained a CRAR of 13.11% as required against 9%. Return on Equity increased from 8.44% on 31st March, 2018 to 14.24% on 31st March, 2020, Anaskar underlined.
National Average of Return on Equity is 6.26%. As on 31st March, 2018, business per employee was Rs 26 crore which substantially increased to Rs 43 crore as on 31st March, 2020. Own Funds of the bank has reached to the level of Rs 4,784 crore which is equal to the level of small Nationalized Banks, he asserted.
The Bank has also announced loan restructuring for sick units. The Bank being the guardian of all Co-operative Societies in the State is committed to strengthening Co-operatives by providing training to staff and members of District Central Banks, Urban Co-op. Banks, Primary Agricultural Co-op. Credit Societies etc.
Major drivers that contribute in the bank’s growth are, the bank has not restricted its Business only to District Central Banks & Sugar Factories but introduced new credit schemes for Co-operative Credit Societies, Housing Societies and Other Co-operative Societies.
Further the Bank has provided a separate platform to UCBs for dealing in Government Securities and also made available a portal for RTGS & NEFT transactions. The Bank has provided various facilities like CTS clearing to the Co-operative Banks. Presently, the Bank is also upgrading its Core Banking System Cyber Security platform and the same facilities are being provided to the Co-operative Banks as well.
Meanwhile, providing necessary support to the UCBs in their difficult times, the Bank has submitted a merger proposal of Rupee Co-op. Bank Ltd, Pune & City Co-op. Bank Ltd, Mumbai on 10th January, 2020 to the RBI. After the permission of RBI, the Bank is planning to enter into Retail Business along with agriculture and agro based business to minimise Credit Risk of the Bank.
”As per the recent amendments in the NABARD Act, MSC Bank’s role has become crucial in the development of MSME Sector and rural economy. The Bank has been able to surpass many records during the financial year 2019-20, only due to all Members, Customers, Well-wishers and Employees of the Bank and I thank them all,” Anaskar added.