Rupee Cooperative Bank has earned profit of Rs 11.87 crore
This is the third year in a row that the bank has made the operating profit. The total recovery since the date of AID is Rs 371.46 crore out of which Rs 242.70 crore had been recovered during the last three years.
PUNE: Rupee Cooperative Bank Ltd, Pune, which is under All Inclusive Directions (AID) of Reserve Bank of India (RBI) since 2013, has earned a profit of Rs 11.87 crore and also made recovery of Rs 38.40 crore for financial year ended on March 31, 2019.
This is the third year in a row that the bank has made the operating profit. The total recovery since the date of AID is Rs 371.46 crore out of which Rs 242.70 crore had been recovered during the last three years. The bank has paid Rs 326.73 crore to 82,471 depositors under the Hardship Withdrawal Scheme. Due to recovery and curtailment in the administrative expenses in the year 2018-19, the investments have increased by Rs 12 crore. For the ensuing year also, the bank is expecting good recovery and profit too. The bank has made almost 100 per cent provision against all its NPA advances.
In the backdrop of the good performance of the bank, the Administrative Board of the bank has requested RBI and the State Government to expedite the solution so as to fully protect the interest of its more than five lakh depositors.
To solve the problem, the Administrative Board has requested the RBI and the State Government to consider various options which include a total merger with any other strong bank, transfer of assets and liabilities with DIC assistance, privatisation and revival of the bank. The administrative board thinks that a joint decision taken by the RBI and government would be in the best interest of the depositors and staff. In the meanwhile, the Administrative Board has requested MSC Bank which has evinced interest for the merger to undertake the due diligence expeditiously. The MSC Bank has responded promptly and positively.
The Administrative Board has also requested the RBI to undertake annual inspection of the bank so as to ensure compliance with statutory provisions and directions issued by the RBI.