Though the majority of co-operators associated with the Cooperative banking sector oppose RBI’s dictate on the constitution of Board of Management in addition to Board of Directors for the UCBs, Maharashtra based Bombay Mercantile Cooperative Bank is the first to follow RBI direction and constitute BoM.
The UCB has recently constituted the Board of Management (BoM) with six members. It has an IT Specialist, Chartered Account, Advocate and others.
“Pursuant to the recommendations of the Malegam Committee, RBI had issued guidelines for UCBs to constitute a BoM in addition to BoD for the UCBs. In this context perhaps, our bank is the first UCB in the country to constitute BoM, following the deadline set by the RBI”, said M. Shah Alam Khan.
In my opinion BoM plays a very important role in the development of banks”, said Shah Alam Khan to Indian Cooperative correspondent during the interview at its headquarters recently in Mumbai.
Coming to the financial figures of the bank Khan said, “The deposit of our bank stood at Rs 2,296 crore as on 31.03.2020. The CASA formed 58.20 percent of the total deposits. Therefore, the cost of deposits remained at 3.96 percent”, he added in the presence of Public Relation head Mohammad Mehdi.
Besides, the total loans and advances of the bank stood at Rs 1,079 crore as on 31st March 2020 compared to loans and advances of Rs 1099 crore as on 31st March 2019. The total business of which stood at Rs 3,690 crore in March 2019 decreased to Rs 3,375 crore as at the end of March 2020, Shah said.
“We are planning to introduce new-age technologies to take the bank to newer heights and make banking easier. Our mobile banking application is in the pipeline and we hope that we will launch it this month. The service will enable the user to send money anywhere in India”, he underlined.
He further added that Mercantile Cooperative Bank has earned a net profit of Rs 3.23 crore in the 2019-20 financial year. Earlier it was Rs 2.32 crore.
“The bank posted a recovery of Rs 10.84 crore in NPA accounts. Due to the pendency of cases in various courts awaiting final decisions, the recovery in NPA accounts has not been substantial. The bank expects a healthy recovery of NPAs during the ensuing year”, he asserted.
The paid share capital of the bank increased from Rs 130 crore to Rs 147 crore as on 31st March 2020. The working capital of the bank stood at Rs 2501 crore at the end of financial year. The bank has a network of 52 branches in almost 10 states.
