Despite accumulating profit for successive years, the Urban Cooperative Bank limited, Rourkela (UCBlR) could not pay the dividend to the shareholders. Though the bank has accumulated profit to the tune of Rs 95.78 lakh in the financial year 2016-17, but it could not pay the dividend to its shareholders due to ban by the RBI, revealed bank sources.
It may be noted here that in the last fiscal, the bank had also made profit to the tune of Rs 104.38 lakh and still it could not give the dividend to the shareholders due to the continuous loss in previous years and NPA was more than 10 per cent.
Though this year, the NPA has slashed to 6.31 per cent, but unless the bank gets clearance from the RBI, it cannot pay any dividend to the stakeholders, briefed UCBlR president Rajesh Mohapatra on Sunday.
The shareholders may be disheartened, but coming down of NPA and earning profit is a good sign for the bank and its shareholders, said Mohapatra.
The bank stands first in the State for its outstanding performance and has been felicitated with citation and prize earlier, informed Mohapatra.
Mohapatra further said his priority thrust is to make the bank a profitable one in a regular basis and once the goal is achieved for successful three years, the bank will apply the RBI seeking permission to give dividend to the shareholders. For this, he also sought the cooperation from the shareholders.
It may be noted here that in 2015-16, the bank was able to reduce gross NPA rate by 2.54 per cent and the gross NPA as on March 31, 2016 was 27.40 per cent in comparison to 29.93 per cent as on March 31, 2015. Similarly, the net NPA was 11.06 per cent as on March 31, 2016 in comparison to 15.55 per cent as on March 31, 2015. Giving the brief financial position of the bank, Mohapatra said the total deposits and advances position of the bank as on March 31, 2017 are Rs 12,367.81 lakh and Rs 7,581.11 lakh. It may be noted here the area of operation of the bank covers whole revenue district of Sundargarh, Jharsuguda and Keonjhar, but it is presently functioning with five branches located at Uditnagar, Daily Market, Shaktinagar and Fertiliser Township of Rourkela and one at Rajgangpur. The bank is running under CBS platform and has obtained the membership from NACH and is participating in CTS clearing.
Very soon the Shaktinagar Branch would be shifting to its own building at Sector-18 Ispat Market, informed Mohapatra. Among others, vice-president Purnima Kerketta, CEO (I/c) RK Mishra, directors and bank officials were present.