The existing Board of Directors of Urban Cooperative Bank Limited, Rourkela (UCBR) took over the charge of management with Rajesh Mohapatra as President in February 2015 while the bank was not only making losses but also on the way of sinking.
But taking it as a challenge, Mohapatra and his team worked hard for which the bank has been earning profit. But despite profit for successive years, the bank 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 Mohapatra.
As per RBI guideline, the question of giving dividend to the shareholders will be considered only in the case of a bank earns profit for three successive years and the difference between gross NPA and net NPA comes under 15 per cent. That is why despite earning profit in the successive years of 2015-16 and 2016-17, the payment of dividend was not permissible due to wide difference in NPA. But in 2017-18 the bank not only has earned profit but also the NPA difference is below 15 per cent and that is why permission is sought from the RBI to pay 8 per cent dividend to the shareholders, informed Mohapatra. Even certain provision of dividend is made for 2015-16 and 2016-17, which is subject to approval of the RBI.
According to the facts and figures, the bank’s net profit after tax is Rs169.24 lakh in comparison to last year profit of Rs 95.78 lakh.
Similarly in the fiscal of 2017-18, while the gross NPA and net NPA are 18.07 per cent and 4.65 per cent in comparison to last year’s 22.08 per cent and 6.31 per cent. Besides the collection has gone up to 91 per cent this year in comparison to 89 per cent of last year.
Similarly, the parameters of bank in individual members, deposits, loan and advances, working capital, reserve, per employee business are in a positive way. Not only the bank has earned profit which is a consolation for both shareholders and customers, but also it has given encouraging benefit to its employees and agents for their tireless effort for the development of the bank.