Despite odds, Pune based Multi-State Bank, Vishweshwar Sahakari Bank has been able to sustain itself in the 2019-20 financial year. Though the UCB registered a slight dip on some financial parameters, the overall health of the bank remained intact.
Despite a reasonable performance, the bank’s Chairman Suniel N. Rukari sounded evasive and not eager to join the conversation with the media. When this correspondent phoned Rukari, Chairman, for his comment he stonewalled saying he was not supposed to comment on the financial report.
Though as the Chairman of the bank he should not have reneged on answering queries from a media person but perhaps the fact that the UCB failed to register growth weighed heavy on him.
Meanwhile, Indian Cooperative has got the financial report of the bank. The total deposits of the bank decreased from Rs 1,523 crore to Rs 1,513 crore whereas loans and advances of the bank declined from Rs 857 crore to Rs 823 crore in 2019-20 FY. As on 31st March 2020, the total business of the bank stood at Rs 2,336 crore.
Besides, the bank claims to have earned a Gross Profit of Rs 37.91 crore and Net Profit of Rs 13.96 crore. Earlier in the 2018-19 financial year the bank’s net profit was Rs 14.42 crore.
The Net Profit seems to have reduced because the bank had to make provisions against the deposits of PMC Bank and for fixed expenses of the ARC. The percentage of profitability is 0.83%, which was 0.84% during the previous year, the report claimed.
The gross NPA increased from 1.93% to 6.68% whereas the Net NPA spiked from 0% to 3.91%. During the year as per the report, there is a recovery of Rs. 1.47 lakh in the accounts written off in the Extraordinary General Meeting held on 22nd March 2018.
As on 31.03.2020 the paid-up capital of the Bank stood at Rs. 42.57 crore, which is less by Rs. 1.48 crore compared to the figures of last year. This reduction is due to refund of share capital of the borrowers who closed their accounts by repayment and with forfeiture of the share capital of defaulting borrowers, according to the report.
The bank has a network of 28 branches.
