Pune Urban Co-op Bank register strong turnaround in FY 2024–25

Maharashtra-based Pune Urban Co-operative Bank has made a strong turnaround in FY 2024–25, as its net NPA dropped from a worrying 23.91% to an impressive 0.00% within just one financial year.

Alongside this, the Provision Coverage Ratio (PCR) jumped from 66.79% in FY 2023–24 to 103.99% in FY 2024–25, well above the regulatory minimum, highlighting the bank’s conservative and proactive provisioning strategy.

The bank also reported a sharp rise in net profit, increasing from Rs 98 lakh in FY 2023–24 to Rs 2.79 crore in FY 2024–25. Its Capital to Risk-weighted Assets Ratio (CRAR) rose from 49.05% to 56.96%, reflecting a strong capital base.

Notably, the bank’s audit classification improved from Class “B” to Class “A”, a testament to its enhanced compliance and operational standards.

While deposits dipped slightly from Rs 380.57 crore to Rs 364.80 crore, and advances reduced from Rs 196.19 crore to Rs 141.08 crore, this was part of the bank’s conscious consolidation strategy aimed at prioritizing quality over quantity.

Talking to Indian Cooperative, the bank CEO Sadhu Bankar said, “The bank is focused on performance in the coming year. Currently, its Credit-Deposit (CD) ratio stands at around 40 percent, and it plans to increase this by 20 percentage points. Once the CD ratio reaches 60 percent, the bank intends to step up its deposit mobilization efforts.

“In the current financial year, the bank aims to achieve a CD ratio of 60 percent by March 2025, covering 100 percent of its total loan portfolio. The bank had opened 10 branches in 2018, but due to a consolidation exercise under the Financially Strong and Well-Managed (FSWM) framework, its branch network was streamlined. Out of a total of 21 branches, six have been merged, bringing the operational branch count down to 15”, he added.

The bank remained fully compliant with CRR and SLR norms and did not attract any monetary penalties from the Reserve Bank of India (RBI), underlining its disciplined regulatory conduct.

It is worth recalling that the bank recently made headlines after the RBI lifted the Supervisory Action Framework (SAF) that had been imposed on it nearly four years ago.