Sizeable reduction in staff strength, as well as the curtailing of administrative expenses, has helped the debt-ridden Rupee Cooperative Bank to report a profit of Rs 19.55 crores at the end of fiscal year 2019-20. A press release issued by Sudhir Pandit, chairman of the board of administrators, stated that the bank was hopeful of a quick merger with the Maharashtra State Cooperative Bank.
“Inspite of the coronavirus-induced situation, the bank has made total recovery of Rs 15.40 Crores. The bank has total deposits of Rs 1,289.72 crore and loans to the tune of Rs 298.50 crore, with around 5 lakh depositors and 35 branches spread all over significant territories of Maharashtra, the bank has made all required provisions to full extent. During last four years, i.e, when the present Administrative Board assumed office, bank has made total recovery of Rs 258.10 crore,” the release read.
Majority of the profit was booked by curtailing its administrative expenses by around Rs 60 crores since 2013. “The treasury income of the bank has made a sizable contribution to profit. Till March 2020, bank has paid Rs 355.23 crores to 89,873 depositors under hardship scheme as directed by RBI,” the release added.
The bank has adopted the Core Banking System and is in the process of pursuing KYC compliance with its customers. In view of the pandemic, the recovery of the bank has been hit, but it is working to address the same. “It includes tracing and attaching of movable and immovable properties of defaulter borrowers and guarantors, public auction of the immovable properties, filing criminal suits against defaulter borrowers etc. The bank is considering various measures to address the coronavirus-induced situation for expediting the recovery,” the statement read.
A Joint Proposal for the merger of the Rupee Bank with MSC Bank Ltd, mutually agreed upon by both the banks, and envisaging No Loss to the depositors, have been submitted to the RBI, and is presently being scrutinised and evaluated. “Both the banks are following it up with RBI. It is expected that the RBI will take lead with pragmatic approach for the earliest merger of the bank. The bank is following up with Reserve Bank and also with the government for expediting the merger. The bank has requested Reserve Bank to undertake an annual financial inspection for FY 2019-20 at the earliest,” the release added.
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