State Cooperative Banks (except Arunachal Pradesh StCB) across the country earned net profits in the 2019-20 financial year whereas out of 351 DCCBs, about 291 succeeded in earning profit in the said fiscal year. Three-fourth of the loss-making DCCBs were concentrated in Uttar Pradesh, MP, Punjab and Bihar.
This was revealed by Nabard’s Annual Report 2020-21 released recently. The report also mentioned the performance of District Central Cooperative Banks.
As per the report, NABARD disbursed Rs 23,500 crore under Special Liquidity Facility (SLF) to cooperative banks (Rs 16,800 crore), RRBs (Rs 6,700 crore) to ensure an unhindered flow of credit to farmers in the wake of the COVID-19 pandemic.
There are 33 state cooperative banks having a network of 2,072 branches across 33 states/UTs. There are 351 DCCBs having a network of 13,589 branches across 20 states/UTs. There are 95,995 PACCs covering more than 6 lakh villages and 13.2 crore are the members. There are 13 state cooperative agriculture and rural development banks having a network of 791 branches across 13 states.
In fact, the StCBs of Jharkhand and Puducherry, which reported losses in the FY2019, posted net profits of Rs 2.6 crore and Rs 23.4 crore, respectively in the FY2020. Seven StCBs had accumulated losses amounting to Rs 1,232 crore. While the Nagaland StCB wiped out its accumulated losses, Kerala StCB posted accumulated losses of Rs 776 crore after 13 district central cooperative banks (DCCBs) were merged with it”, it reads.
It further claimed that of the 291 DCCBs showing profits, 60 DCCBs incurred a net loss during FY2020. Three-fourth of the loss-making DCCBs were concentrated in Uttar Pradesh (30%), Madhya Pradesh (22%), Punjab (13%), and Bihar (12%).
Out of 13 SCARDBs, 10 posted a net profit of Rs 287 crore, while 3 (Himachal Pradesh, Jammu & Kashmir, and Puducherry) incurred a net loss of Rs 35 crore. The SCARDBs in Haryana, Tripura, and Uttar Pradesh turned their fortunes around in the FY 2020.
As of 31 March 2020, 126 of 351 DCCBs had gross NPAs greater than 15%. The high incidence of such DCCBs was observed in Madhya Pradesh, Uttar Pradesh, Bihar, and Maharashtra. All the DCCBs in Odisha and Tamil Nadu had gross NPAs less than 15%.
The gross NPAs (%) of all the SCARDBs (barring Kerala and Puducherry) were over 10% as of 31 March 2020. The overall gross NPA of 33% in theFY2020 were 650 basis points higher than the FY2019 level.
The CRAR of StCBs as a whole at 11.8% was greater than the 9% norm as of 31 March 2020, though Puducherry (7.3%), Goa (3.4%), and Kerala (7.3%) lagged behind.
It is worth mentioning that during the FY2021, NABARD disbursed a total of Rs 1,30,964 crore to state cooperative banks (StCBs) and RRBs (with respective shares of 77.2% and 22.8%) under short-term (ST) refinance facility to enable them to meet production and working capital requirements of farmers, weavers, and artisans.
Considering the liquidity crunch faced by the state cooperative agriculture and rural development banks (SCARDBs) in the wake of the pandemic, NABARD extended SLF to eligible SCARDBs from its own funds as upfront liquidity support at concessional rates so that the banks could continue lending in rural areas. As of March 2021, Rs 908.16 crore has been disbursed to SCARDBs in Himachal Pradesh, Karnataka, Punjab, Rajasthan, and Uttar Pradesh under this line of credit.
As announced by the Finance Minister Nirmala Sitharaman, NABARD was to provide additional Rs 30,000 crore refinance support to rural cooperative banks and RRBs, in addition to the targeted Rs 90,000 crore during the FY2021, taking to the total disbursement to Rs 1.2 lakh crore short-term refinance by the end of the FY2021.
Besides, for PACCs Computerization, NABARD has introduced a new scheme under which grant support of up to Rs 5 crore will be provided to those state governments/ StCBs/DCCBs that are willing to provide a matching grant for the purpose.
NABARD has so far sanctioned six proposals for PACS computerisation in Andhra Pradesh, Bihar, Rajasthan, Telangana, Uttarakhand, and Uttar Pradesh with a total fund outlay of Rs 30 crore, of which Rs 5 crore has already been disbursed to Telangana StCB.
The link of annual report of Nabard is given below:
https://www.nabard.org/pdf/annual-report-2020-21-full-report.pdf