Maharashtra based Akola Urban Cooperative Bank performed satisfactorly in the 2021-22 financial year, especially in reducing the NPA levels and earning net profit.
During the year, the bank only failed to increase its advance portfolio in comparison to previous year i.e. the 2020-21 FY. The advances of the bank came down from Rs 937 crore (FY 2020-21) to Rs 791 crore in the 2021-22 FY.
The deposits of the bank grew from Rs 1556 crore to Rs 1605 crore as of 31st March 2022. The business mix stood at Rs 2,396 crore.
Talking to Indian Cooperative correspondent on the phone, Akola UCB Chairman Rameshwar Fudkar said, “We have performed well on all the financial parameters in the 2021-22 FY and at present focusing on recovery of loans. Despite making a handsome provision, our profit as of 31st March 2022, showed upside potential”.
“Due to Covid-19 aftershocks, we had failed to disburse the huge loans to the borrowers but now we are making a strategy to open up new opportunities. We are focusing on improving the existing system”, he added.
The net NPA of the bank went down from 5.37 percent to 1.88 percent whereas gross NPA decreased from 12.68 percent to 7.86 percent. The bank earned a net profit of Rs 9.91 crore as of 31st March 2022. Earlier i.e. in the 2020-21 FY, it was Rs 4.96 crore.
The CRAR of the bank stood at 14.81 percent. The paid up share capital and reserves increased from Rs 69.30 crore and 138.77 crore respectively in the 2021-22 FY. The net worth of the bank as of 31st March 2022 stood at 94.88 crore.
Readers would recall that recently the bank organized a glittering function in Indore, when the bank took over the beleaguered Indore Nagarik Sahakari Bank.The bank has a network of 29 branches in Maharashtra but with the merger of four branches of Indore Nagarik Sahakari Bank, it comes to 33.
The Bank was started with a small capital of Rs.1.13 lacs which now stands at Rs.51.26 crores. In terms of size of business, the bank is the largest in the area of Vidarbha, Marathwada & Khandesh. The bank has declared profit continuously for the last 25 years.