After facing turbulent years due to exposure in PMC Bank, Bengaluru-based Janatha Cooperative Bank has made a remarkable turnaround, registering a net profit of Rs 17.92 crore as on 31st March 2025.
Emerging from two consecutive years of losses, Rs 16.86 crore in 2021–22 and Rs 8.34 crore in 2022–23, the bank has demonstrated a stellar recovery, with its Capital to Risk-Weighted Assets Ratio (CRAR) improving significantly to 21.07%.
One of the most notable achievements is the bank attaining zero net NPA, while gross NPAs have been brought down from 9.39% to 4.67%, indicating strong asset quality management.
Speaking exclusively to this correspondent at the Bank’s Malleshwaram office, Chairman Marigowda C.L. recalled the bank’s challenging phase, “We faced serious difficulties due to our Rs 40 crore exposure in PMC Bank, which forced us to make heavy provisions. The simultaneous downfall of several local cooperative banks in Bengaluru also created a crisis of trust. But today, we can proudly say we are back on track.”
Marigowda, who began his journey with the bank as a clerk in 1972, shared that the bank is currently under the Supervisory Action Framework (SAF) and efforts are underway to exit it.
He acknowledged that due to the SAF restrictions, the bank’s deposit base saw a decline from Rs 742.55 crore in 2023–24 to Rs 660.62 crore in 2024–25. “However, we are actively working to reverse this trend,” he added.
The bank’s Credit-Deposit ratio, as per unaudited figures, stood at a healthy 64.82% as of March-end 2025.
Janatha Cooperative Bank currently operates with seven branches, all located within Bengaluru. The Chairman clarified that there are no plans for expansion or converting the institution into a Small Finance Bank. “Our focus is on empowering existing branches and enhancing service delivery,” he stated.
Raising a voice on policy matters, Marigowda urged the RBI to reduce the Priority Sector Lending (PSL) target to 40% for urban cooperative banks, citing difficulties in meeting the current thresholds in metropolitan settings. He also called for removal of caps on small-ticket urban loans, which are often difficult to service under current restrictions.
Founded on May 4, 1964, the Janatha Cooperative Bank was inaugurated by the then Chief Minister of Karnataka S. Nijalingappa, in a modest rented space at Malleshwaram 17th Cross. Sixty years later, the bank stands resilient—weathered by storms, but determined to grow stronger.