Maharashtra based Raigad District Central Cooperative Bank has performed well on almost all the financial parameters but the bank registered a decrease in the net profit in the 2020-21 financial year. The bank has been able to maintain ‘Zero’ Net NPA as it did in the past.
The figures were revealed in the 60th Annual General Meeting organized last week. During the meeting a plan was announced to give a 12.5 percent dividend to its shareholders. The bank, which is headed by MLC Jayant Patil, has crossed a business mix of more than Rs 3,500 crore as on 31st March 2021.
When other banks are grappling with the aftershocks of Covid-19 on their business, the Raigad DCCB has seen very little impact. “The bank deposits increased from Rs 2,091 crore to Rs 2,359 crore whereas loans and advances rose from Rs 1,200 crore to Rs 1,294 crore as on 31st March 2021.
The total business of the bank grew from Rs 3,291 crore in 2019-20 to Rs 3,653 crore in the 2020-21 FY”, revealed Pradeep Naik, CEO of the bank to this correspondent on the phone.
The bank earned a gross profit to the tune of Rs 37.98 crore in 2020-21. Earlier i.e. in 2019-20 it was Rs 59.14 crore. “The reason behind the decrease in profit is that we have invested a heavy amount of money and secondly due to covid the credit portfolio is less. But at the end of the current financial year, we are hoping that we will earn a gross profit of more than Rs 50 crore. As on 31st March 2021, the bank earned a net profit of Rs 23 crore”, said its CEO.
Besides, we are making strategies to enhance the business. Due to the heavy amount stuck in several beleaguered banks like Pen UCB, Karnala Nagari Sahakari Bank, Goregaon Cooperative Urban Bank and others, there is a slight rise in Gross NPA in comparison to the previous year. The gross NPA of the bank increased from 9.59 percent to 10.88 percent. With the efforts of management and employees, we are working hard to lower our gross NPA levels”, he asserted.
Naik further added that, in order to help the flood victims of Mahad and other areas, we have launched a scheme in which we will give Rs 1 lakh to the beneficiary at the rate of 6 percent, Rs 1-3 lakh at the rate of R 7 percent and more than Rs 3 lakh at the rate of interest of 9 percent.
The Raigad DCCB is also active in micro financing and has given micro finance so far to more than 20k Self Help Groups. The bank has disbursed over 100 crore and also digitized over 5,700 SHGs. The CD ratio of the bank stood at 54.87 percent.
During the AGM, Bank’s Vice Chairman Suresh Khaire, directors, senior officials, employees and others were present.
The bank was established in 1960 and the area of operation is the entire Raigad District and Head Office is situated at Alibag, having 58 branches. The bank also won several awards from the state government as well as other organizations in different categories.