Goa State Co-op Bank registers turnaround; now targets MSMEs

Goa State Cooperative Bank, which has struggled with losses in recent years, has shown consistent improvement and achieved satisfactory profitability for the 2023-24 financial year.

The bank not only maintained profitability but also made significant strides in expanding its business and substantially reducing its NPA levels. It is now focusing on introducing new digital technologies for customers and enhancing its support for MSMEs through loans and financial assistance.

As of March 31, 2024, the bank’s gross NPA decreased from 10.03 percent in the previous year to 4.17 percent, while the net NPA reduced from 2.86 percent to 2.54 percent. Additionally, the bank’s business mix grew from Rs 3,463 crore to Rs 3,484 crore.

Net profit surged from Rs 1.76 crore in the 2022-23 fiscal year to Rs 4.82 crore in 2023-24.

In a statement to Indian Cooperative, the bank’s Managing Director, Anant Chodankar, said, “After years of struggle and financial losses, Goa State Cooperative Bank has made a remarkable turnaround, achieving satisfactory profitability in the 2023-24 financial year. The bank, which had been in the red since 2012, has now emerged as a strong and resilient institution.”

Chodankar added, “To avoid overexposure to any single sector, we are planning to diversify our business portfolio, with a particular focus on MSMEs. We are also introducing new loan schemes and are optimistic about further increasing our loan portfolio and continuing our journey of profitability.”

Looking ahead, Chodankar outlined the bank’s future plans, emphasizing a commitment to digital transformation by investing in advanced technologies and expanding digital banking services. The bank has set a Vision Plan until March 31, 2029, aiming for a 42% increase in business mix compared to March 31, 2024.

As of March 31, 2024, the bank’s Credit Deposit (CD) Ratio stood at 47.70%, with advances totaling Rs 1,125.38 crore. The Capital to Risk Weighted Assets Ratio (CRAR) improved to 12.53% from 11.15% in the previous year.

The bank supports 3,837 affiliated Self Help Groups, of which 208 are credit-linked with outstanding loans amounting to Rs 510.50 lakh. Additionally, the bank has financed 117 Joint Liability Groups (JLGs) out of 502 affiliated groups, with an outstanding amount of Rs 350.45 lakh.

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