Maharashtra-based NKGSB Bank has earned a net profit of Rs 14.79 crore in the 2020-21 financial year, which is more than triple in comparison to the 2019-20 FY. The bank has announced plans to give a 7 percent dividend to its shareholders for the said financial year.
The announcement was made in the 104th Annual General Meeting of the bank held recently in Mumbai. Despite the Covid-19 odds, the operating profit for the financial year 2020-21 improved to Rs 70 crore as compared to Rs 47.67 crore last year. The Net Profit after tax and provisions for the F.Y. 2020-21 improved to Rs 14.79 crore as compared to Rs 3.07 Cr. for the previous year
The business mix of the bank stood at Rs 11,264 crore. The deposits and loans and advances of the bank as of 31st March 2021 stood at Rs 6,994 crore and Rs 4,270 crore respectively. The Owned funds improved from Rs 781 crore to Rs 821 crore.
Besides, the bank’s CRAR has improved and stood at 13.43% well above the stipulated norms of 12%. The core capital (Tier I) of the Bank has increased to a good level above 9%. The paid-up capital of the Bank as of March 31, 2021, stood at Rs 83.13 cr as compared to Rs 86.76 cr in the previous year, claims the bank financial report for the year 2020-21.
Despite the adverse impact of the pandemic, the gross NPAs have marginally increased by Rs 3.48 Cr. and placed at the level of Rs 364.55 Cr during the F.Y.2020-21. Gross NPA percentage increased from 7.36% to 8.54% and Net NPA percentage increased from 5.09% to 5.37%.
In his message to shareholders, the bank Chairman Kishore Kulkarni wrote, “The Bank is making all-out efforts to contain NPA through various methods including Legal route. The Bank has strengthened the review and monitoring system to improve the credit quality thereby bringing down slippages and to improve recovery”.
“The year 2020-21 was an unpredictable and extra-ordinary year due to the COVID-19 pandemic and affected the performance of the F.Y.2020-21. Despite the ill effects brought by the pandemic on the Bank’s business, the profitability was resilient”, he further wrote.
Meanwhile, the Bank is evaluating the option to consolidate its existing network of 109 Branches. The Bank has taken a conscious call for the merger of certain branches for optimal utilization of its existing resources and to improve operational efficiency.
The bank was established in September 1917.