New India Co-op Bank: Financial parameters shrink, not the spirit

Despite setbacks in major parameters this fiscal, Mumbai based Scheduled Multi state Bank New India Cooperative Bank introduced Bharat Bill Payment Services that allow customers to pay utility bills at any of the bank’s branches.

Though the 51st AGM held earlier at Bharatiya Vidya Bhavan in Mumbai concluded that UCB’s net profit has decreased to Rs 7.60 cr from Rs 13.61 cr of last year, it did not deter the bank from taking up several initiatives to increase retail lending and these included introduction of auto-rickshaw loans, aggressive pricing for home loans and launching of a special scheme for two-wheeler loans.

“Deposit and advances have also decreased. The deposits of the Bank as on March 31,2018 were Rs.2547.09 Crore as against Rs.2645.55 Crore as on March 31, 2017.The net decline is Rs.98.46 Crore i.e. –3.72%. The Bank’s Advances portfolio decreased to Rs.1167.73 Crore as on March 31, 2018 from Rs.1,452.76 Crore as on March 31, 2017. The net decrease is Rs.285.03 Crore i.e. -19.61%”, according to the report published on the website.

The bank’s gross and net NPA has also increased in this financial year. Now the Gross NPA and Net NPA is 129.20 crore and 100.50 crore respectively whereas earlier in the FY 2016-17 it was 39.08 crore and 20.63 crore respectively.

Despite this, the bank announced 13% dividend for the financial year 2017-2018 for its shareholders.

Shrinkage in performance was also coupled with diffidence as when Indian Cooperative tried to contact Ranjit Bhanu, Chairman of the bank for his reaction, his staff members refused to share his contact details.

The working Capital of the bank was at Rs.3228.80 Crore as on March 31,2018 as against Rs.2,949.98 Crore as on March 31,2017. The paid up share capital & Reserves of the Bank as on March 31, 2018 stood at Rs. 23.94 Crore and Rs. 224.22 Crore respectively.

The bank was founded in Mumbai in 1968 & was renamed as the New India Co-Operative Bank Limited in 1977. The bank is having 31 branches including Head office in two states including Maharashtra and Gujarat.

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