It can be called a year of mixed results for the Maharashtra based Janaseva Sahakari Bank (Borivali). While due to the efforts of management and staff-members, the UCB could reduce it NPA below 10 per cent, it failed, however to register a growth in both profit and deposits.
The saving grace had been that due to the reducing NPA, Janaseva Sahakari Bank (Borivali) could give dividend to its members. It bears recall that RBI disallows disbursal of dividend if the NPA exceeds 10 percent. Luckily, for its share-holders, the UCB was able to bring it down to 9 percent from that of 13 per cent of the last year.
Cooperators associated with the Janaseva Sahakari Bank (Borivali) says it is a come-back for the UCB. The Bank also announced a 6 percent dividend for its shareholders after a gap of one year. Earlier, the UCB failed to disburse dividend to its shareholders in 2016-17 FY due to mounting NPAs.
The bank recovered about Rs 30 crore in the period 2017-18, said Adv. Jayprakash Mishra on the occasion of the 37th AGM of the bank recently held in Paradise Banquet Hall, Borivali (East), Mumbai.
“In the FY 2016-17 Gross NPA was more than 16 percent and Net NPA more than 13 percent but the bank’s Board
members’ efforts succeeded in reducing NPAs. The recovery of loans counted Rs 30 crore in the 2017-18 fiscal. As per RBI’s rule if a bank’s Net NPA is more than 10 percent then a bank is not allowed to disburse dividend to its
Janaseva Sahakari Bank (Borivali) is presently weighed down by Gross NPA counting more than 13 percent and Net NPA below 9 percent in the 2017-18 fiscal.
The bank has earned a net profit of Rs 1.64 crore as against 1.82 crore in the financial year 2016-17.
The total business of the bank in 2017-18 is Rs 952 crore where as in the 2016-17 fiscal, it was Rs 1,022 crore. The deposits stand at Rs. 630.62 crore as on 31.03.2018 as against Rs. 682.54 as on 31.03.2017.
He further said the bank is currently focused on improving infrastructure and the internal system of its 13 branches across Maharashtra and is not planning to expand business at least in the foreseeable future.
The bank General Manager Ranganathan Sarangpani, board members, hundreds of delegates and others were present on the occasion.