Mumbai based New India Cooperative Bank is able to reduce the accumulated losses in the 2023-24 FY. It has been reduced from Rs 30.74 crore (2022-23 FY) to Rs 22.77 crore as of 31st March 2024 but failed to increase in advances portfolio in comparison to previous financial year. The bank organized its 57th Annual General Meeting last month.
The bank’s advances portfolio reduced to Rs 1174.84 crore as on March 31, 2024 as against Rs 1329.88 crore as on March 31, 2023. The Net decrease is Rs 155.04 crore i.e 11.66%.
The deposits of the bank as on March 31, 2024 were Rs 2436.37 crore as against Rs 2405.86 crore as on March 31, 2023. The Net increase is Rs 30.51 Crore i.e. 1.26%.
Due to accumulated losses, the bank is not able to declare the dividend for the financial year 2023-2024. The CRAR of the bank as on March 31, 2024 was at 9.06% against minimum requirement of 10% as stipulated by the RBI.
It is worth mentioning that the bank is making efforts to get out of the red as the bank shifted its Virar branch to nearby location for curtailing rent & other administrative cost to improve profitability.
The bank merged its Shanti Park, Mira Road Branch with Poonam Garden, Mira Road Branch and Wakad, Pune Branch with Bibwewadi Branch to curtail overall administrative costs and improve its profitability.
Besides, during the year, the bank has sold three premises, namely, Malad (East), Majiwade and Chembur at Rs 31.23 crore. The profit on sale of premises to the extent of revaluation reserve created earlier on the said premises i.e Rs 25.90 crore is transferred to Profit & Loss Appropriation Account and balance profit is accounted as profit on sale of assets.
During F.Y. 2023-24, the bank has revalued its 12 premises based on valuation provided by registered Valuer in June 2023. The total fair market value of premises revalued is Rs 84.11 crore. The Book value as on the date of valuation was Rs 72.21 crore.
Accordingly, the bank has created a revaluation reserve of Rs 11.89 crore, revealed in its 57th annual financial year report. The bank’s gross NPA and Net NPA stood at 7.96 percent and 5.43 percent as on 31st March 2024.respectively.
The bank was established in 1967 and has a network of 28 branches in the states of Maharashtra and Gujarat. The total reserves funds as on 31st March 2024 of the bank stood at Rs 292.88 crore and working capital at Rs 2,997.15 crore.
