Maharashtra-based Zoroastrian Cooperative Bank, which is headed by a known IT expert Yazdi B Tantra, has failed to perform satisfactorily in the 2020-21 financial year. The net NPA of the bank increased and the net profit decreased, even the total business mix declined as of 31st March 2021.
Besides, the bank has also not proposed any dividend for the year ended 31st March 2021. The net NPA increased from 1.55 percent (2019-20) to 4.98 percent (2020-21). The total business mix of the bank decreased from Rs 1,678.57 crore to Rs 1,592.82 crore in the 2020-21 FY.
The profit after tax of the Bank for the fiscal 2020-21 is Rs 1.05 crore. Earlier in 2019-20, the profit of the bank was 3.28 crore.
Reacting to the development, the bank CEO Daljit Dogra stated that the capital to risk-weighted assets ratio (CRAR) of our bank stood at over 24 percent, as of March 31, 2021, he said this is well above the minimum regulatory prescription. We have been consistently maintaining CRAR above the minimum prescribed by the RBI.
Besides, for conserving capital we are not distributing dividends for the year ended 31st March 2021. The members associated with the bank have faith in us, he added on the phone.
According to the annual report of the bank, the profit after tax of the Bank for the fiscal 2020-21 is Rs.105.02 lakhs after provisions and contingencies of Rs 878.82 lakhs, provision for taxes of Rs. 209.02 lakhs and all expenses.
It further reads that the “COVID-19 Pandemic continues to cause large-scale disruptions across the globe. The impact on the Indian Economy is significant. The probability of defaults by the borrowers continues to be high. Therefore, with a view to conserve capital in an environment of continued uncertainty caused by the COVID-19 Pandemic, the Board of Directors of the Bank, at their meeting held on August 31, 2021, has not proposed any dividend for the year ended March 31, 2021”.
The good thing is that the deposits of the bank have increased to Rs 1,177.58 crore from Rs 1,143.78 crore the previous year. The share of CASA Deposits is 28.25 % (previous year 26.60 %) of the Total Deposits of the Bank.
The gross NPA as of 31st March 2021 stood at 12.76 percent.
In a message to the shareholders, the bank Chairman Tantra wrote, ” The Team ZCBL would continue to make efforts to sustain growth amidst the challenging environment during the current year FY 2021-22. I am confident that the continued rigor, focus, and commitment shown in the FY 2020-21 will stand the Bank in good stead even during the FY 2021-22″.
The bank has a network of 18 branches in two states including Maharashtra and Gujarat.