UP Co-operative Bank (UPCB) posted a net profit of Rs 50.91 crore in the last 2017-18 fiscal - the highest in the history of the bank. The UPCB is implementing `Complete business solution’ software in its 16 District Co-operative Banks.
The 16 DCBs identified as weak banks by the RBI as they had eroded their net worth, were given license for conducting banking operations in 2016 by the RBI.
Co-operative minister Mukut Bihari Verma told media persons on Wednesday that of the total 394 branches of the 16 DCBs, 353 branches have been linked with CBS and the rest would be linked by April end. He said that by the end of 2017-18, only six DCBs were sanctioning crop loan to farmers and their number has gone up to 15 in the current fiscal.
Verma said that during 2017-18, the DCBs made a total advance of Rs 1,421 crore to farmers for Rabi crop by March 31 this year.
“The total deposits of DCBs by March 31 this year stood at Rs 15,631 crore. The performance of the DCBs in recovery of the loan was poor as banks could recover only Rs 2,372 crore which was 35.24 percent of the total outstanding amount,” he said. During 2017-18 fscal, UP Cooperative Bank invested Rs 1,033 crore in food credit consortium under Food Security Scheme of the Center and earned a net income of Rs 95 crore.
The UPCB also sanctioned short-term credit of Rs 400 crore to IFFCO (Indian Farmer’s Fertilizers Co-operative) and Rs 250 crore to Food Corporation of India to earn over Rs 14 crore from the investment.