MSCB Maharashtra State co operative Bank Ltd earns 441 crore profit
Annual general meeting of the Maharashtra State Co-operative Bank Ltd., (MSCB), and the leading State Co-operative Bank in India was held in Mumbai recently. While reviewing the progress made by the Bank during the financial year 2012-2013, the chairman of bank’s administrative board Vijay Kumar Aggarwal informed the meeting that the bank earned gross profit of Rs 441 crore, and net profit of Rs 391 crore. After wiping out accumulated losses of Rs 76 crore, the bank is left with the profit of Rs 314 crore. As a result, after the lapse of 8 years, the bank is in a positiOn to declare dividend to its shareholders. The bank’s net worth reached to the extent of Rs 1,019 crore in the current fiscal. As per the guidelines of the Reserve Bank of India and NABARD, state co-operative banks are expected to attain minimum 9% Capital Risk Adequacy Ratio (CRAR) by March 2014. However, MSCB has achieved 10.64% CRAR well in advance by March 31 2013 itself. Aggarwal, referred to ‘Compromise Settlement Scheme 2012′ approved by the special general meeting of the bank held on December 8 last year. The scheme is meant for the bank’s loans in non performing category, under which 48 societies and individual borrowers applied. Of these, 36 eligible societies and individual members have been informed about the due amounts payable as well as the rebate available to them. He disclosed that after the completion of this present Scheme, a new scheme on these lines for the year 2013 would be considered. Six district banks not complying with the section 11(1) of banking Regulation Act 1949, were declared ineligible for short term crop loan refinance by NABARD. But during the year 2012-2013, MSCB extended the limits of Rs 603 crore from its own resources to these banks against the State government’s default guarantee, elaborated the chairman. Of these six banks first Jalna and Dhule – Nandurbar District Banks and later Osmanabad District Bank got banking license from RBI. He further stated that the Bank has prepared ‘Business Plan’ for the coming five years and added that its implementation has already begun from the present financial year. The members raised various issues and got themselves fully satisfied. The general body demanded 7% dividend instead of proposed 5%.