Maharashtra-based New India Cooperative Bank has shown a net loss to the tune of Rs 6.14 crore in the 2020-21 Financial Year. Earlier i.e. in 2019-20, the bank earned a net profit of Rs 5.17 crore.
Besides, the bank has not announced any dividend for the financial year 2020-2021 due to the incurred net loss. Readers would recall that earlier the bank had hogged the media headlines for two reasons: the bank had announced to convert into a Small Finance Bank (SFB) and a penalty of Rs 25 lakhs was imposed on the bank by the RBI recently.
The good thing is that despite Covid-19, the bank succeeded in increasing its overall business. The deposits of the Bank as of March 31, 2021 were Rs.2471 cr as against Rs.2367 cr as of March 31, 2020. Net increase is Rs. 104 cr i.e. 4.39%. Whereas, the bank’s Advances portfolio increased to Rs 1416 cr as on March 31, 2021 from Rs.1274 cr as on March 31, 2020. Net increase is Rs142 cr i.e.11.14%, claimed in its 54th annual report.
The CRAR of the bank as on March 31, 2021 was at 10.86% against minimum requirement of 9% as stipulated by the RBI.
The paid-up share capital & Reserves of the Bank as of March 31, 2021 stood at Rs.22.59 cr and Rs 236 cr respectively. The Working Capital of the bank was at Rs.3137 cr as of March 31, 2021 as against Rs.2972 cr as of March 31, 2020.
As of March 31, 2021, the investments of the bank stood at Rs 1197 cr as against Rs 1224 cr as of March 31, 2020.
However, the bank’s Chairman Hiren Bhanu was not available to comment on the annual report.
The bank was founded in Mumbai in 1968 & was renamed as the New India Co-operative Bank Limited in 1977. The bank has 30 branches including Head office in two states including Maharashtra and Gujarat.