Page 17 - Banking Finance September 2024
P. 17
regarding exposure limits to single and
group borrowers. Telangana's largest UCB, Gayatri Co-op Urban Bank
The Co-operative Bank of Rajkot Ltd. aims converting into SFB
was penalized Rs 8 lakh for non-com- The largest UCB in Telangana, Gayatri Cooperative Urban Bank, is planning
pliance with RBI directives on interest to convert into a Small Finance Bank (SFB) and is currently awaiting the No
rates for deposits and Know Your Cus- Objection Certificate (NOC) from the Central Registrar of Cooperative Soci-
tomer (KYC) requirements. eties.
Maharashtra Nagari Sahakari Bank As soon as the bank receives the NOC from the Central Registrar of Coop-
Limited in Latur was fined Rs 2 lakh for erative Societies (CRCS), it will submit its conversion proposal to the Reserve
violations related to Income Recogni- Bank of India (RBI). Interestingly, the bank is already fulfilling all the neces-
tion and Asset Classification (IRAC) sary parameters for this transition, positioning itself well for approval.
norms and contraventions of sections Sharing the reason behind the bank's conversion into an SFB, Gayatri Coop-
26A and 56 of the Banking Regulation
erative Urban Bank CEO Vanamala Srinivas said, "It is very challenging for
Act, 1949.
us to work within the cooperative culture due to its narrow scope. This stra-
Gandhidham Mercantile Co-operative tegic shift aims to overcome these limitations, allowing the bank to expand
Bank Limited in Kachchh was penalized its operations, diversify its services, and better meet the evolving needs of
Rs 1 lakh for failing to adhere to direc- its customers."
tions on donations to trusts and insti-
tutions where directors or their rela- "For instance, if we have to open a branch, we have to take permission
tives hold positions or have an interest. from the RBI. However, as an SFB, we can open up to 50 branches without
any prior permission. We are firm in our decision and will not change our
The Nashik Jilha Mahila Sahakari Bank mind. We are also fulfilling all the parameters in this connection," added
Ltd. was fined Rs 50,000 for contraven- Srinivas while speaking to this correspondent at the bank's headquarters in
tions of section 26A(2) of the Banking Jagtial district, Telangana.
Regulation Act.
These penalties were imposed under
As of March 31, 2024, the banks gross sure to any single sector, we are plan-
the RBI's authority, as conferred by
NPA decreased from 10.03 percent in ning to diversify our business portfolio,
sections 47A(1)(c), 46(4)(i), and 56 of
the previous year to 4.17 percent, with a particular focus on MSMEs. We
the Banking Regulation Act.
while the net NPA reduced from 2.86 are also introducing new loan schemes
percent to 2.54 percent. Additionally, and are optimistic about further in-
Goa State Co-op Bank reg- the banks business mix grew from Rs creasing our loan portfolio and continu-
isters turnaround; now 3,463 crore to Rs 3,484 crore. ing our journey of profitability.
targets MSMEs Net profit surged from Rs 1.76 crore Looking ahead, Chodankar outlined the
in the 2022-23 fiscal year to Rs 4.82 banks future plans, emphasizing a
Goa State Cooperative Bank, which commitment to digital transformation
has struggled with losses in recent crore in 2023-24. by investing in advanced technologies
years, has shown consistent improve- In a statement to Indian Cooperative, and expanding digital banking services.
ment and achieved satisfactory profit- the banks Managing Director, Anant The bank has set a Vision Plan until
ability for the 2023-24 financial year. Chodankar, said, After years of March 31, 2029, aiming for a 42% in-
struggle and financial losses, Goa State
The bank not only maintained profit- crease in business mix compared to
ability but also made significant strides Cooperative Bank has made a remark- March 31, 2024.
in expanding its business and substan- able turnaround, achieving satisfactory As of March 31, 2024, the banks Credit
tially reducing its NPA levels. It is now profitability in the 2023-24 financial Deposit (CD) Ratio stood at 47.70%,
focusing on introducing new digital year. The bank, which had been in the with advances totaling Rs 1,125.38
red since 2012, has now emerged as a
technologies for customers and en- crore. The Capital to Risk Weighted As-
hancing its support for MSMEs through strong and resilient institution. sets Ratio (CRAR) improved to 12.53%
loans and financial assistance. Chodankar added, To avoid overexpo- from 11.15% in the previous year.
16 | 2024 | SEPTEMBER | BANKING FINANCE
