Mumbai based Kutch Cooperative Bank organized its 20th Annual General Meeting in Mumbai recently. According to the financial report of the bank published on the website, the Bank’s gross NPA during the year has gone up from 1.05 % on 31.03.2017 to 4.70 % as on 31st March 2018. Whereas the Bank’s net NPA has also hiked from 0.49 % on 31.03.2017 to 3.88 % as on 31st March, 2018.
The level of NPA has gone up mainly on account of defaults in Rickshaw loans, the report underlined.
The total deposits of the Bank have also gone down from Rs. 2726.93 lakh as on 31st March, 2017 to Rs. 2651.20 lakh on 31st March, 2018 resulting in a decrease of about 2.78%. Aware of this fact, the bank will make all possible efforts to arrest depleting deposits in the next year, the report further reads.
The bank has also not performed well in the field of profit and earned a net profit of only Rs 29 lakh in 2017-18 as against Rs 37 lakhs in 31.03.2017. In the FY 2016-17 the bank had announced 7 % dividend for its shareholders whereas in the FY 2017-18 the bank has announced only 5 percent dividend.
The total advances of the Bank have gone up from Rs. 1037.42 lakh as on 31st March, 2017 to Rs. 1370.22 lakh as on as on 31st March, 2018 showing a increase of 32.08%.
The bank Chairman Dr Nemji K. Gangar was not available for comment on the bank’s financial background.
Kutch Cooperative Bank was established on 24thDecember, 1998 and the Bank received a license from RBI on18th May, 1999. The Bank started its banking business w. e. f. 5th November, 2000. The bank recently opened a branch at Vile Parle (East) which is equipped with safe deposit lockers facility and lockers are available on easy terms and conditions.