Rupee Coop Bank profit falls to Rs 5.46 cr in FY18

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Pune | Published: May 12, 2018 3:22:38 AM

The bank reduced its staff strength from over 900 to 343 and cut the administrative cost from Rs 38.30 crore last year to Rs 28.50 crore this year.

Rupee Cooperative Bank, Rupee Cooperative Bank profit, Rupee Cooperative Bank FY18Rupee Cooperative Bank has posted a profit of Rs 5.46 crore during the financial year ended March 31, 2018, compared to the Rs 16-crore profit during the previous financial year. (Express Photo)

Rupee Cooperative Bank has posted a profit of Rs 5.46 crore during the financial year ended March 31, 2018, compared to the Rs 16-crore profit during the previous financial year. The bank has made a recovery of Rs 42.80 crore and has controlled its cost during the financial year despite constraints and adverse market conditions, said Sudhir Pandit, chairman, Administrative Board, Rupee Cooperative Bank. Pandit said that the bank has succeeded in reducing the gap between its assets and liabilities from Rs 460 crore to Rs 440 crore. The bank expects a good recovery of at least Rs 55 crore during current financial year, of which a recovery of at least Rs 30 crore could be made before September 30, he said.

The bank reduced its staff strength from over 900 to 343 and cut the administrative cost from Rs 38.30 crore last year to Rs 28.50 crore this year. The bank has also adopted core banking for securing its customer data for over last twenty years. The bank has repaid deposits of Rs 286 crore to its 72,000 depositors who were facing hardship after directions were imposed on the bank in February, 2013. Rupee Bank has initiated stringent recovery measures against the chronic and wilful defaulters as well as its past directors and executives by attaching over 300 properties and their demat and bank accounts, he said.

In view of the overall improvement in the working of the bank, the bank has received expression of interest from other banks for taking over its assets and liabilities.He said the bank is pursuing with the state government a long term solution through merger with other financially strong banks. “ The long term solution to the problem faced by depositors would require funding the gap of Rs 440 crore between the deposits of the bank and its assets. Therefore, the bank has urged RBI to take up the statutory inspection of the bank and organise a meeting with the state government authorities and the Board of Administrators to discuss future course of action,” he said.

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