Maharashtra State Cooperative Bank reports Rs 369-crore net in FY21

By: |
June 25, 2021 3:45 AM

The bank’s total income dropped 30% to Rs 2,427 crore, from Rs 3,485 crore. The bank had made provision of Rs 1,012 crore towards NPA loan write-off and Rs 455 crore general reserves write-off, according to senior officials.

The bank’s operating profit stood at Rs 758 crore, same as the previous year. Last year, the operating profit increased due to receipt of government guarantee of Rs 304 crore towards interest.The bank’s operating profit stood at Rs 758 crore, same as the previous year. Last year, the operating profit increased due to receipt of government guarantee of Rs 304 crore towards interest.

Maharashtra State Cooperative Bank (MSC) Bank has reported a net profit of Rs 369 crore for the financial year 2021, a rise of 14% over the previous year.

The bank’s total income dropped 30% to Rs 2,427 crore, from Rs 3,485 crore. The bank had made provision of Rs 1,012 crore towards NPA loan write-off and Rs 455 crore general reserves write-off, according to senior officials.

The gross profit of the bank fell to Rs 776 crore, compared with Rs 1,345 crore for the previous year, down 42%. In FY20, general reserves of Rs 455 crore, Rs 62-crore IDR (investment depreciation reserve) and Rs 75-crore old IR (overdue interest reserve) were written back (total Rs 592 crore).

The bank’s operating profit stood at Rs 758 crore, same as the previous year. Last year, the operating profit increased due to receipt of government guarantee of Rs 304 crore towards interest.

Vidyadhar Anaskar, chairman of the board of administrators of the bank, said during FY21, the operating profit was the result of pure business operations. The net NPA ratio increased to 1.21% from nil in FY20 due to the Covid-19 impact. Advances increased 12% to Rs 23,295 crore, from Rs 20,817 crore in the previous fiscal.

The MSC Bank is the apex cooperative bank in the state and lends mostly to agricultural enterprises like sugar mills and agri-processing units. Anaskar said the total exposure to the sector is Rs 22,000 crore, of which Rs 10,000 crore is earmarked for the sugar sector as pledged loan. The bank’s proposal to foray into retail lending, however, has been rejected by the Reserve Bank of India, he said.

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