In the wake of reports concerning alleged irregularities and fraud in loan sanctioning, the Managing Director of the Andaman and Nicobar State Cooperative Bank K. Murugan released a video message reassuring customers of the bank’s financial soundness and stability.
In a video statement, Murugan stated, “The bank is completely safe. Customers holding fixed deposits or conducting transactions need not worry, your money is secure. The bank is governed by the Reserve Bank of India (RBI) and NABARD, and all deposits are protected.”
Murugan urged customers not to fall prey to rumors circulating about the bank’s financial health. “This is your bank, a bank for the farmers. The institution remains in a strong financial position, and continues to be governed by sound principles,” he emphasized.
Highlighting the financial data, the MD shared that the bank currently holds total deposits worth Rs 1,336 crore. Of this, Rs 250 crore has been invested in the Food Corporation of India (FCI), which remains secure, and another Rs 246 crore has been invested in Government of India bonds, also considered safe.
Additionally, Rs 86 crore has been deposited in the form of fixed deposits in other banks, while Rs 33 crore is maintained as floating balance in current accounts with commercial banks. The bank has Rs 575 crore in standard (non-NPA) loans, and proactive steps are being taken to recover loans under the NPA category.
He noted that the bank has successfully reduced its gross NPA level to 32% and has made full provisioning of Rs 130 crore against these NPAs.
Murugan also highlighted the safety net provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which ensures up to Rs 5 lakh for every depositor.
In terms of profitability, the bank earned a net profit of Rs 7.35 crore in the financial year 2023–24 and has already recorded an unaudited profit of Rs 7.61 crore in the current financial year (2024–25).
“We request all depositors not to panic. This is a routine investigation and has no impact on the bank’s functioning or stability. All funds are safe,” Murugan concluded.
