Despite lack of growth in deposits or advances, Maharashtra based Dombivli Nagari Sahakari Bank has earned a gross profit to the tune of Rs 125 crore in the 2020-21 FY which is Rs 36 crore higher in comparison to the 2019-20 FY.
In the wake of Covid-19 challenges, the bank has failed to register growth on other financial parameters like deposits, loans and advances, investments and others. The business mix of the bank declined from Rs 6,945 crore to Rs 6,387 crore in the 2020-21 FY.
Talking to Indian Cooperative, the bank’s Chairman Uday Karve said, “Though the bank registered a decline in the business mix, we are focusing on earning profit instead of growth. And the same we have shown in the financial year 2020-21. During the financial year we have reduced the cost of interest on deposits”.
The bank’s deposits decreased from Rs 4,287 crore to Rs 4,064 crore and loans and advances declined from Rs 2,658 crore to Rs 2,323 crore as on 31st March 2021. But still the bank succeeded in earning a net profit to the tune of Rs 39 crore.
Later on the statement released from the bank reads, “2020-21 was a very tough year for the financial sector. However, in spite of such challenging times, DNS Bank has maintained its profitability and earned more profit than the preceding year. Since RBI has now allowed cooperative banks to pay dividends, it will be possible to pay to the shareholders from this profit.
The share capital stands at Rs 146 crore while the capital adequacy ratio is at satisfactory level of 13%. The bank has also launched the “DNS Pay” app which is free of charge. This app can be used to make payments through UPI or QR code and also carry out transactions through your bank accounts at other banks. DNS bank has also started allotting QR codes to its customers so that they can accept payment through other apps, it further reads.
Meanwhile, the bank was very active at ground zero and helping the needy in the best possible ways. Recently the bank contributed 30 oxygen cylinders to the local RSS body and 5 oxygen concentrators to the local NGO and others.
The bank has a network of 68 branches spread across 15 districts of Maharashtra. Readers would recall that the bank had donated Rs 32 lakh to the PM Care Fund, the Chief Minister’s Assistance Fund and the R.S.S. Janakalyan Samiti as its contribution in fighting the pandemic.