A leading urban cooperative bank of Maharashtra, TJSB Sahakari Bank has done remarkably well by earning the highest profit recorded by the Bank in its history of 49 years. The Bank has reported net profit of Rs 163 Crore, up from Rs 120 crore in the previous year, announced jubilant Chairman Vivekanand Patki.
TJSB has also recorded impressive gains on other indices as in the FY 21, the Bank’s deposits grew by Rs 675 crore to Rs 12,049 crore. But its advances at Rs 5631 crore showed a marginal drop of Rs 10 Crores over the previous year. Gross NPAs of the Bank reduced from 5.86% in FY 20 to 4.23 % in FY 21. Net NPAs of the Bank are 0%.
Speaking on the impressive performance of the bank, Chairman Shri. Vivekanand Patki said, “I am extremely pleased to declare the results for the FY 21 against the backdrop of Covid-19. We have reported a Net Profit of Rs 163 Crore, a new milestone in the history of the Bank. With proper monitoring of the loan portfolio, we have managed to bring down the Net NPAs to 0%, Patki added.
The Bank is holding provisions for bad debts in excess of its NPAs. At a time when the need for capitalisation is being discussed across the banking industry, the Bank’s Capital Adequacy Ratio is robust at 16.16%. The Bank is holding very sound liquidity. We shall be celebrating the golden jubilee of the Bank in the current year and have set ourselves certain business targets. With more than adequate capital headroom and strong liquidity, we are confident, we would be able to surpass the same. At the same time, we shall continue to be cautious in our approach given the continuing Covid related issues.”
Patki emphasised that these results, in such difficult times, would not have been possible without the faith and trust reposed by the Bank’s customers in the bank, encouragement by the shareholders and the well-wishers of the Bank; and most importantly, the commitment and dedication of the executives and the staff of TJSB and he expressed sincere gratitude towards all these stakeholders.
He further informed that during this golden jubilee year, the Bank has undertaken the project to upgrade its Core Banking Solution to keep pace with its increasing business volumes. The Bank is committed to provide a secured IT environment to counter IT / cyber threats and provide a good digital experience to its new-gen customers.
TJSB Sahakari Bank announced its Audited Financial results for the F.Y. 2020-21 on April 09, 2021 – within 9 days after the close of the financial year, reaffirming transparency in operations and strong corporate governance. In conclusion, Patki added that 0% Net NPA, 16.16% CRAR and strong profitability parameters are the indicators of the sound financial position of the Bank.
Despite multiple challenges posed by Covid 19 in the FY 2020-21, the Board of TJSB charted a cautious path, keeping its customers’ welfare as its topmost priority. The bank came up with schemes like “Sahayog” and “Swayam” at low interest rates to improve the liquidity in the hands of its customers, claimed Patki.
The Bank granted 6 months’ moratorium to all its customers and also refunded the “interest on interest” during the period of moratorium as per the directives of the Supreme Court.
The bank takes pride that through these and other timely steps, it could help its customers rebuild their businesses. During these testing times, the Bank chose to be cautious in lending and avoided aggressive or adventurous credit decisions. Although the strategy has resulted in a marginal growth of Rs 10.00 Crores in the Bank’s advances, the quality of its loan portfolio has been protected.
Timely changes in the rates of interest on deposits and advances have helped the Bank in recording a robust Net Interest Margin (NIM), says a press release issued by the bank.