Andhra Pradesh’s leading urban cooperative bank- Kakinada Cooperative Town Bank, led by former Member of Parliament Chitturi Ravindra, has shown an exceptional performance across all financial parameters for the 2023-24 fiscal year, achieving a ‘Zero’ net NPA.
The bank recorded a substantial growth, with deposits rising from Rs 1,039 crore in 2022-23 to Rs 1,056 crore as of 31st March 2024 and advances increasing from Rs 682 crore to Rs 696 crore during the same period. The bank’s total business stood at Rs 1,752 crore.
In an interview with the Indian Cooperative at the bank’s headquarters in Kakinada district of Andhra Pradesh, CEO C. Suguna Rao shared, “Since our establishment, we have consistently been on a growth trajectory, earning healthy profits year after year. We have been distributing a 15 percent dividend to our shareholders for several years”, he said.
When asked whether the bank is considering converting into a Small Finance Bank (SFB), like a few other cooperative banks of AP, Rao stated, “No, we have no plans to convert into an SFB, nor has any decision been made by the board in this regard. We are also not aiming to become a multi-state cooperative bank in the near future,” he emphasised.
Addressing questions about challenges in meeting the Priority Sector Lending (PSL) targets and issuing small-ticket loans, Rao remarked, “We have not faced any such challenges. In fact, we have exceeded the PSL lending targets set by the RBI and are comfortably managing small-ticket loans”, he noted.
The bank posted a net profit of Rs 13.93 crore in the 2023-24 fiscal year and anticipates earning Rs 15.39 crore in 2024-25 and Rs 16.69 crore in 2025-26.
As of 31st March 2024, the bank’s branch network comprises 18 branches. Its Credit-Deposit (CD) ratio stood at 65.91 percent, and its Capital to Risk (Weighted) Assets Ratio (CRAR) was 17.87 percent.
The bank Chairman Chitturi Ravindra also doubles as the Chairman of Andhra Pradesh Urban Cooperative Banks Federation.
Notably, the bank recently made headlines for contributing Rs 12 lakh to the Andhra Pradesh CM Relief Fund to support flood-affected victims.