Urban Co-operative Banks (UCBs) in India registered a stellar 52.59% jump in net profit for FY24, reaching Rs 4,700.43 crore, up from Rs 3,080.42 crore in the previous fiscal. The surge highlights improved income generation, cost containment, and healthier asset quality across the sector.
The growth was largely fueled by a 6.53% increase in interest income, which climbed to Rs 50,707.78 crore. Income from loans and advances, the largest contributor, rose 6.87% to Rs 33,500.25 crore. A standout performance was seen in interest earnings from balances with the RBI and interbank placements, which rose by a sharp 29.12%, indicating better liquidity management.
While other income dropped by 6.14%, components such as fee and commission earnings still grew 6.37%, reflecting steady non-interest revenue. However, losses from the sale of fixed assets widened, pulling down gains from other income segments.
On the expenditure side, total expenses increased by a modest 7.95%, with interest expenses growing 10.24% and operating costs rising only 2.26%. Staff costs saw just a 2.14% increase, suggesting efficient HR management.
A key highlight was the 44.27% drop in provisions, falling to Rs 3,103.95 crore, which significantly boosted profitability. Consequently, net profit before tax soared 43.4% to Rs 6,309.28 crore.
Scheduled UCBs reported a net profit of Rs 2,407.23 crore, a 88.9% rise, while non-scheduled UCBs earned Rs 2,293.20 crore, growing 26.9%. The numbers reflect the sector’s resilience and evolving financial prudence amid a challenging macroeconomic landscape.