In a significant financial performance, the Karnataka State Cooperative Apex Bank has reported a robust business mix of nearly Rs 41,000 crore and a gross profit of Rs 370 crore for the financial year ending 31st March 2025, as per unaudited figures.
Speaking to Indian Cooperative, the Bank’s Managing Director C.N. Devaraj, said, “We have made commendable progress on all financial parameters. Our business as on 31st March 2025 stood at nearly Rs 41,000 crore, reflecting the bank’s strong financial position.”
According to the unaudited figures shared, the bank’s deposits grew from Rs 13,347 crore in FY 2023–24 to Rs 14,274 crore in FY 2024–25. Loans and advances increased from Rs 24,720 crore to Rs 26,692 crore during the same period. The bank also registered a net profit of Rs 67 crore for the fiscal year.
The bank’s Net NPA stood at 3.07 percent, while the Gross NPA was 5.29 percent. The Capital to Risk-Weighted Assets Ratio (CRAR) was at 10.57 percent. The net worth of the bank reached Rs 2,450 crore and reserves stood at Rs 1,575 crore.
Raising a critical concern, Devaraj pointed out that NABARD’s annual allocation under the concessional Short-Term Agriculture Operations (ST-SAO) has been decreasing year after year. “For FY 2024–25, we faced a shortfall of Rs 3,260 crore compared to the previous year. We urge the concerned authorities to enhance the ST-SAO limit at concessional rates for Karnataka,” he said.
He also appealed for an increase in the housing loan limit for state cooperative banks. “Currently, the maximum housing loan limit is Rs 75 lakh, which is insufficient in metropolitan areas like Bengaluru where property costs are high. We request this cap be raised to Rs 2 crore to help us retain good borrowers.”
Devaraj further advocated for an increase in the ceiling for gold loans and personal loans. He called for providing cooperative banks greater autonomy, on par with commercial and private sector banks, to enhance operational efficiency.
Highlighting the role of Primary Agricultural Credit Societies (PACS), he said, “Karnataka has around 5,665 PACS, out of which nearly 95 percent are financially viable. The computerization process of PACS is underway and will be completed soon.”
On the issue of loans sanctioned to a sugar factory linked to BJP MLA Ramesh Jarkiholi, Devaraj informed that recovery efforts are yielding results. “Out of the Rs 110 crore principal amount, Rs 56 crore has already been recovered. Efforts to recover the remaining amount are in progress,” he added.
With consistent financial growth and a clear focus on reforms and recovery, the Karnataka State Cooperative Apex Bank continues to strengthen its position in the cooperative banking sector.