The Southern India’s leading urban cooperative bank, Visakhapatnam Cooperative Bank, has crossed a business mix of more than Rs 7,700 crore, while successfully reducing its gross NPA levels from 2.29% to 1.88% as of March 31, 2025.
The bank’s total deposits increased by 4.98%, reaching Rs 4,354.73 crore, compared to Rs 4,148.30 crore in the previous year. Loans also saw a notable rise of 7.42%, standing at Rs 3,436.47 crore, up from Rs 3,199.24 crore in March 2024. As a result, the bank’s total business grew by 6.04% to Rs 7,791.20 crore.
Despite an overall rise in deposits, low-cost deposits (SB & CD) fell by 1.65%, decreasing to Rs 755.91 crore from Rs 768.61 crore in the previous year. The Current Deposit (CD) segment saw a steep decline of 13.13%, while Savings Bank (SB) deposits dropped slightly by 1.21%.
The bank recorded a 7.66% decline in SLR investments, which fell from Rs 1,197.75 crore to Rs 1,106.06 crore. Meanwhile, total investments grew marginally by 1.15%. However, profitability took a hit, with profits dropping by 18.75%, falling from Rs 87.79 crore to Rs 71.33 crore.
A significant positive development was the reduction in Gross NPA from Rs 73.41 crore to Rs 64.59 crore, leading to an improved Gross NPA ratio of 1.88% (down from 2.29%). The Provision Coverage Ratio (PCR) increased to 165.29%, reflecting stronger financial resilience.
The bank expanded its branch network from 50 to 55, indicating 10% growth in outreach. However, employee productivity declined slightly by 2.95%, from Rs 14.18 crore per employee to Rs 13.77 crore.
The Capital to Risk-Weighted Assets Ratio (CRAR) improved from 21.95% to 23.09%, strengthening the bank’s financial position. As the bank expands its footprint and improves NPA levels, the focus will likely shift towards profitability recovery and enhancing low-cost deposit mobilization.
Overall, while the bank has shown resilience in loan growth and NPA management, its profitability and investment performance remain key areas to watch in the coming year.