Almost all the DCCBs of Uttarakhand have not only earned profit but also recovered a huge part of dead loans, underling the fact how things change for better when state govt and co-op institutions work in tandem.
The NPA recovery campaign launched by Uttarakhand Cooperative Minister Dhan Singh Rawat has come out with good results. The State Cooperative Bank and District Central Cooperative Banks are able to earn a net profit of more than Rs 60 crore in the 2020-21 financial year.
There are many DCCBs which were grappling with the rise in NPA but now they have performed well. A few of them were even in the red but all have made profits. They have not only earned profits but also made good recoveries despite Covid 19, said one of the DCCBs Chairman to this correspondent.
Udham Singh Nagar District Cooperative ranks first in the list of profit making DCCBs, earning a net profit of Rs 7.05 crore whereas Tehri-Garhwal DCCBs ranks second, earning a net profit of Rs 6.54 crore.
The Uttarakhand State Cooperative Bank, Haldwani earned a net profit of Rs 13.23 crore.
The list of DCCBs earning net profit includes Dehradun DCCB (Rs 5.47 cr), Kotdwar-Garhwal DCCB (Rs 2.15 cr), Chamoli DCCB (Rs 4.48 cr), Uttarkashi DCCB (Rs 4.61 cr), Haridwar DCCB (Rs 2.16 cr), Nainital DCCB, (Rs 5.86 cr), Pithoragarh DCCB (Rs 5.36 cr), Almora DCCB (Rs 3.98 cr).
Talking to Indian Cooperative several DCCBs Chairmen thanked the efforts of cooperative minister and state government. The latter launched several schemes which directly enabled the co-op banks to earn handsome profit. We have also taken action against the borrowers under the Sarfesi act.
Besides earning a handsome profit, the banks have done a recovery of around Rs 150 crore.
Uttarakhand Co-operative Minister Dhan Singh Rawat said, “After continuous review and taking tough decisions, the banks were able to recover the NPA. Last year the NPA was Rs 665 crore, which has now come down to just Rs 530 crore rupees as on 31st March 2021. The state cooperative bank had 9% NPA in the previous year, which has come down to 4.90% this year”.
Tehri-Garhwal District Cooperative Bank holds first position in carrying out recoveries and has had a recovery of Rs 27.3 cr. This experience of Uttarakhand proves co-ops can do wonders if the state govt support them, said several co-operative leaders of the state.