Reaffirming its numero uno position and breaking all its past records, the largest urban cooperative bank of India—Saraswat Cooperative Bank—crossed the business mix of more than Rs 82,000 crore and earned a handsome net profit of Rs 503 crore in the 2023-24 financial year. The profit earned is more than double compared to last year, informed the young Chairman of the Bank, Gautam Thakur.
The Saraswat Bank was also able to maintain the ‘Zero’ net NPA for the last two years in a row, and this year the bank decided to make an additional floating provision of Rs 125 crore as a further prudent measure—an idea being implemented for the first time in the history of the co-op banking sector.
Talking to the Indian Cooperative, Saraswat Bank Chairman explained that the idea of making an additional floating provision of Rs 125 crore is aimed at fortifying the bank against eventualities in the future. “We are planning not only for one year ahead but also for the future,” underlined Thakur.
Quoting James Dimon, an American banker who has been the chairman and chief executive officer of JPMorgan Chase, Thakur said our board has decided to come up with what is known as a ‘Fortified Balance Sheet,’ capable of facing all eventualities of the future.
Having registered zero net NPA year after year, Saraswat Bank is in a position to make such a provision, he averred, reminding that the actual net profit before additional floating provision is Rs 628 crore in the 2023-24 FY.
Gautam Thakur also said that the year has been good for the banking sector, with almost all the banks registering a spike in their balance sheet. Maintaining a CRAR at 17.28 percent is no mean feat for a bank of Saraswat’s size, experts opine.
The balance sheet shows that the business mix of the bank increased from Rs 75,559 crore (2022-23) to Rs 82,025 crore in the 2023-24 financial year. Besides, the deposits of the bank grew from Rs 44,502 crore to Rs 49,457 crore and advances increased from Rs 31,057 crore to Rs 32,568 as of 31st March 2024.
As of 31st March 2024, the gross and net NPA stood at 2.88 percent and ‘Zero’ respectively. The bank’s CRAR stood at 17.28 percent as of 31.03.2024.
The Saraswat Co-operative Bank, established in 1918, is the largest scheduled Urban Cooperative Bank in India with a successful track record of uninterrupted profit and dividend, coupled with good governance.
The bank has spread its wings in six states—Maharashtra, Goa, Gujarat, Delhi, Madhya Pradesh, and Karnataka—and has a network of 302 branches and 341 plus ATMs. The bank is committed to taking its legacy ahead with outstanding services.
The Bank was selected among the World’s Best Banks for the 4th consecutive year by Forbes Survey. Forbes, in partnership with market research firm Statista, announced this ranking based on their market survey on customer service and satisfaction.
It bears recalling that Saraswat Cooperative Bank has made the highest capital contribution among the urban cooperative banks of India towards the National Urban Cooperative Finance and Development Corporation (NUCFDC), which will act as an Umbrella Organization (UO) for UCBs in the country.