Andhra Pradesh based Jampeta Cooperative Urban Bank is aiming to achieve a business mix exceeding Rs 1,000 crore by 2026, while also planning to open three new branches by the end of the current financial year.
The bank, which is led by Bommana Jaya Kumar, the son of prominent textile trader Late Bommana Raj Kumar, achieved a ‘Zero’ net NPA during the FY 2023-24.
Talking to the Indian Cooperative correspondent, Jaya Kumar shared, “We are on a growth trajectory and are committed to reaching new milestones each year. Our target is to surpass a business mix of Rs 1,000 crore by 2026 and we are confident we will achieve it,” he said.
He further elaborated, “Currently, our business mix stands at around Rs 700 crore, with Rs 430 crore in deposits and Rs 270 crore in advances. We are in the process of opening three additional branches, which will be operational by the end of this financial year, bringing our total to 13 branches”, he informed.
During the conversation, Kumar expressed some disappointment with the RBI’s approach towards urban cooperative banks. “The RBI’s stance towards UCBs should be more supportive, rather than always imposing strict actions. UCBs need more operational freedom to thrive,” he remarked.
In the FY 2023-24, Jampeta Cooperative Bank increased both its deposits and advances but saw a slight decline in net profit. The bank’s deposits grew from Rs 382.04 crore in FY 2022-23 to Rs 425.61 crore as of 31st March 2024, while advances rose from Rs 232.81 crore to Rs 257.23 crore.
When asked about the decline in net profit, Kumar explained, “To attract more depositors, we slightly raised interest rates on deposits, resulting in a Rs 43 crore increase in our deposit portfolio. Over the past six years, our deposits have consistently grown, from Rs 184.17 crore in FY 2018-19 to Rs 425.61 crore in FY 2023-24. However, our net profit dipped slightly from Rs 4.76 crore to Rs 3.83 crore,” he said.
The Jampeta Cooperative Urban Bank was established in 1926 by local businessman Sri Seela Veerabhadrudu. It was registered as a Cooperative Society on 26th June 1926 with an initial share capital of Rs 520, and business operations began on 22nd August 1926.