Page 19 - Banking Finance October 2024
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India (14 RRBs), Punjab National Bank Uttar Pradesh Govern- gamation with Bengaluru-based Na-
(9), and Canara Bank (4). tional Cooperative Bank Ltd. During
ment Bans Strikes in Co-
RRBs recorded their highest-ever con- the Special General Meeting (SGM),
solidated net profit of Rs. 7,571 crore operative Sector Amid Pay 97.47% of Cosmos Bank members
for FY24, with a gross non-performing Hike Protests voted in favor of the merger, while
asset (GNPA) ratio of 6.1%, the lowest 94.06% of National Cooperative Bank
in a decade. Last month, Union Finance Employees of various cooperative insti- members approved it.
Minister Nirmala Sitharaman urged tutions in Uttar Pradesh are protest- National Cooperative Bank operates 13
RRBs to focus on enhancing business ing, demanding the implementation of branches in Karnataka, and the amal-
performance, upgrading digital ser- the 7th Pay Commission and resolving gamation will expand Cosmos Bank's
vices, and supporting MSME clusters. salary discrepancies. The protests, led presence in the state. The merger pro-
by the Uttar Pradesh Cooperative Fed-
eration (PCF), have persisted despite posal will now be submitted to the Re-
Pune's People's Co-opera- serve Bank of India for final approval.
adverse weather conditions.
tive Bank Reports Strong Cosmos Bank has previously merged
The Uttar Pradesh government, how- with 18 smaller cooperative banks.
Performance, Declares ever, has imposed a six-month ban on
12.5% Dividend strikes in the cooperative sector, af- Gujarats UCBs lead in
fecting institutions such as the State
Pune People's Cooperative Bank an- Warehousing Corporation. PCF employ- reining NPAs; CM ap-
nounced a 12.5% dividend for FY24 ees, who play a critical role in grain
during its 73rd Annual General Meet- plauds critical co-ops role
ing. The bank achieved a business mix procurement, remain firm in their de- Gujarats Urban Co-operative Banks
of Rs. 2,378 crore, including Rs. 1,471 mands and continue the strike despite (UCBs) have shown remarkable perfor-
crore in deposits and Rs. 907.79 crore the government's directive. mance, achieving a Gross Non-Per-
in loans. The bank also reported a net forming Asset (GNPA) ratio of just
profit of Rs. 16.20 crore and main- Cosmos Bank Sharehold- 0.5%. This is well below the national
tained a zero net non-performing as- ers Approve Amalgam- average of 3.8% for UCBs across India,
set (NPA) status. marking the financial strength of the
ation with National Co-op-
Chairman CA Janardan Ranadive high- states UCB ecosystem. Jyotindra
lighted the bank's focus on consistency erative Bank Mehta, Chairman of the National Ur-
and stability, with plans to adopt the The Cosmos Cooperative Bank Ltd. has ban Co-operative Finance and Devel-
UPI Lite system and shift to a cloud- received overwhelming approval from opment Corporation (NUCFDC), high-
based data management system. its members for the proposed amal- lighted this achievement during the
Sahakar Setu Summit at The Leela,
Some RRBs Express Interest in IPOs After Strong Per- Gandhinagar.
The one-day summit, aimed at
formance
strengthening the western UCB sector,
Buoyed by strong financial performance, several Regional Rural Banks attracted over 500 participants, in-
(RRBs) are considering initial public offerings (IPOs), as discussed during a cluding policymakers, regulators, and
meeting with Finance Minister Nirmala Sitharaman. Sponsor banks, includ- banking leaders. Mehta emphasized
ing Punjab National Bank (PNB), indicated that some RRBs, such as Prathama that Gujarats UCB ecosystem is poised
UP Gramin Bank and Punjab Gramin Bank, are well-positioned for public for sustainable growth, with the low
fundraising. NPA rate signalling financial health
Prathama UP Gramin Bank, formed by the 2019 amalgamation of Sarva UP and future resilience.
Gramin Bank and Prathama Gramin Bank, operates 967 branches across Several industry leaders echoed this
20 districts in Uttar Pradesh. RRBs aiming for IPOs must meet the finance sentiment, emphasizing the impor-
ministry's 2022 guidelines, which require a minimum net worth of Rs. 300 tance of digital transformation for
crore, a capital adequacy ratio above 9%, and consistent profitability. UCBs.
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