Nabard has come out with a 358-page report on the performance of co-op banks during 2019-20, which says that the aggregate accumulated losses of State Co-op Banks have increased from Rs.471 crore to Rs.1,232 crore.
Nabard, however posted a 24 per cent growth in its balance sheet to a record high of Rs 6.57 lakh crore in the financial year ended on March 31, 2021.
Nabard blames the loss on the amalgamation of 13 DCCBs in Kerala with Kerala State Co-op Bank. Seven out of 33 StCBs were having accumulated losses as on 31 March 2020.
During the year, Nagaland StCB has wiped out the accumulated losses. The StCBs which had accumulated losses as on 31 March 2020 were Arunachal Pradesh, Jharkhand, Goa, Manipur, Puducherry, Andaman & Nicobar & Kerala StCB , the report says.
In the total business of State Co-op Banks, the share of the Southern Region was the highest, followed by Western, Northern, Eastern, Central and North Eastern. The Return of Assets of the StCBs in Western region was the highest.
The quantum jump in deposits, loans and advances and investments during the year was mainly due to amalgamation of 13 DCCBs in Kerala with Kerala StCB. The share of CASA deposits in the aggregate deposits of the StCBs is very low hovering around 18%.
However, there were seven StCBs (Andaman & Nicobar, Jharkhand, Arunachal Pradesh, Manipur, Meghalaya, Nagaland & Chandigarh) whose CASA deposits were above 50%.
Some StCBs have very low CASA deposits, i.e. below 10%, viz. Chhattisgarh, Madhya Pradesh, Uttarakhand, Uttar Pradesh, Odisha, Andhra Pradesh & Maharashtra. The high composition of CASA deposits helps to improve the net margin. CD Ratio has declined from 109.8% to 95.1% during the year 2019-20.
There were 10 StCBs with a CD ratio more than 100%. There were 5 StCBs whose CD ratio was below 50%. The StCB with lowest CD ratio was Jharkhand StCB (16.5%) and the highest was Rajasthan StCB (315%).
Aggregate accumulated losses of the DCCBs have been increasing consistently and as on 31 March 2020, 108 out of 351 DCCBs were having accumulated losses of Rs. 6,721 Crore as against 111 out of 363 DCCBs which had accumulated losses of Rs.6,654 crore as on 31 March 2020.
In the total business of the DCCBs, the share of DCCBs in Western Region was the highest (32.6%), followed by Southern (26.3%), Central (16.5%), Northern (14.9%) and Eastern(9.8%).
The publication also lists several development initiatives taken by Nabard such as Cooperative Development Fund (CDF), Providing assistance to CTIs under the “Scheme of Financial Assistance for Training of Cooperative Banks’ Personnel (SOFTCOB)” , Setting up of PACS Development Cells (PDC) at DCCBs/ StCBs for improving PACS business , etc.
In its report Nabard says the Short Term Cooperative Credit Structure STCCS functions through 33 State Co-operative Banks which has 2,072 branches, 351 District Central Co-operative Banks (DCCBs) which have 13,589 branches) and over 95,000 Primary Agriculture Credit Societies (PACS).