Maharashtra State Co-operative Bank Limited (MSCB) has reported a net profit of Rs 325 crore with net NPA at zero per cent in the financial year ended on March 31, 2020. The cooperative bank has claimed that net NPA of zero percent has never happened before in the bank’s history of 109 years.
The bank has reported Rs 1,345 crore of gross profit in the financial year ended on March 31, 2020.
In FY 2019-2020, the bank made 100 per cent provision which is why for the first time the bank reported zero per cent net NPA. The national average of provision coverage ratio (NPA provision) of commercial banks is 46 per cent whereas for Co-operative banks it is 64 per cent.
The bank has not revealed its gross NPA in its statement. Meanwhile, the net worth of the company has dropped in FY 2019-2020 to Rs 2,282 crore from Rs 2,682 crore in FY 2018-2019.
In 2011, the bank had net loss of Rs 1,069 crore, but today it has outgrown it.
While the operating profit of the bank is Rs 758 crore, its net profit stands at Rs 325 crore despite making 100 per cent provisions. The total business of the company stood at Rs 41,666 crore in FY 2019-2020 as against Rs 35,439 crore in FY 2018-2019.
The bank stated that its own funds have reached the level of Rs 4,784 crore which is equal to the level of a small nationalised bank.
