Page 22 - Banking Finance June 2020

CO-OPERATIVE BANK NEWS

the highest in the history of the bank. der the Mahatma Phule Karj Mukti Bihar State Co-op Bank
Similarly, the bank has reported total Yojana. The move has come as a ma-
business of Rs 41,666 crore, again a jor relief for thousands of farmers in deposit declines while
record high. The bank has reported 0 Maharashtra, who were fearing of Profit rises
net NPA for the first time in its history. being deprived of the fresh loan ben- The apex bank-Bihar State Cooperative
efits amid the Kharif season that Bank has earned a net of Rs 48.85 crore
However, the net worth of the bank
started from June. The bank had dis- in the 2019-2020 financial year. Earlier
has shown erosion from the last fiscal.
As against the Rs 2,682 crore net bursed the loans between January 1 it was 47.31 crore. According to the
worth reported in 2018-19, the bank and October 1, 2019 analysis of the audited balance sheet
has now reported a net worth of Rs The two-member HC division bench, sent by the bank to Indian Cooperative,
2,282 crore. The net profit of the bank comprising Justices SV Gangapurwala though the bank has failed to increase
reported at the end of the last fiscal and RG Avachat, while hearing a pub- its deposits, loans and advances, even
though there is a slight rise in gross NPA,
was Rs 325 crore. lic interest litigation (PIL) filed by it has succeeded in earning more profit
Kishore Tangade, a farmer, through
The bank has managed to provide 100 in comparison to the previous year.
senior advocate SB Talekar, was in-
per cent provision for its bad loans, "The deposits of the bank have de-
which has taken the net NPA to zero. formed that the Kharif season has clined from 1,348.49 crore to Rs
started amid the raging coronavirus
"Nationalised banks have 46 per cent disease (Covid-19) outbreak that has 1233.18 crore in the 2019-20 FY. The
coverage while cooperative banks have battered the economy, including the Gross NPA of the bank increased from
64 per cent such coverage," said agriculture sector. 4.81 percent to 4.88 but the bank suc-
Anaskar. The bank has managed to de- ceeded in controlling the Net NPA
Talekar submitted before the court
risk its loan portfolios by increasing its from 2.07 percent to 1.61 percent",
that many farmers were eligible for a
exposure to sectors other than sugar according to the balance sheet. The
mills and district central cooperative loan, but only 49.62% got the money bank has earned a gross profit of Rs
banks. after they paid interests on their out- 74.92 crore in the 2019-20 FY which
standing dues. was Rs 72.72 crore earlier. The CRAR
Anaskar has indicated that the bank of the bank has increased from 21.26
wants to get into retail business like The bench was informed that the bank percent to 25.76 percent. The fund has
home or car loans in the future. In this was insistent on recovering interests risen from Rs 672.65 crore to Rs
regard, the bank has given a proposal on loans after October 1, 2019, and 721.28 crore in the 2019-2020 FY.
only those, who have settled their out-
to the RBI for a merger with Rupee
standing dues by selling their gold or- The press release further reads, "With the
Cooperative Bank.
naments are eligible for a fresh loan. collaboration of the state government,
Bihar State Cooperative Bank is providing
HC directs Aurangabad Talekar submitted that though the direct benefits to the farmers through the
state government under Section 79A of
District Central Coopera- the Maharashtra Co-operative Societ- crop assistance scheme, paddy procure-
ment and fruit vegetable processing etc.
tive Bank to disburse ies Act, 1960, had directed the bank to At present 1960.49 crore has been paid
disburse loans to eligible farmers on
loans to farmers January 17, the lending institution did to farmers in procurement".

An Aurangabad division bench of the not comply with the order. "In the financial year 2019-20, under
Bombay high court (HC) has directed The bank's move has denied many the successful assistance scheme, a
the Aurangabad District Central Co- farmers sowing activities for the Kharif total of 246.32 crore rupees have been
operative Bank to disburse loans to season and they are staring at massive deposited in the accounts of farmers.
farmers with immediate effect. Our bank is providing 3.75% interest to
financial losses amid the viral out- customers in savings accounts, which
Earlier, the bank authorities had re- break. Government pleader DR Kale is quite attractive compared to other
fused to disburse fresh loans, as they reiterated the petitioners' submissions banks. Several schemes including Daily
were seeking to recover interests ac- and reminded the court that the bank Deposit Scheme, Atal Pension Scheme
crued on loans, which were waived off is bound to comply with the state and others have been launched for the
by the Maharashtra government un- government's January 17 order. customers", it further reads.

22 | 2020 | JUNE | BANKING FINANCE