TJSB Bank sets an example in the cooperative banking sector for efficient management in challenging business environment. TJSB Sahakari Bank Ltd announced its audited financial results for FY 2020-21 on April 09, 2021 i.e., within 9 days after the close of the financial year, reaffirming transparency in operations and strong corporate governance.
FY 2020-21 was a challenging year. The year began with a prolonged lockdown triggered by COVID-19 pandemic. Businesses had to struggle for survival.
Business sentiment was badly affected. Banking industry was staring at increasing defaults, mounting NPAs, hampered
credit growth and dwindling bottom lines. Against the above background, in FY 21, though bank’s deposits grew by Rs 675 crore to Rs 12,049 crore, advances at Rs 5,631 crore showed a marginal drop of Rs 10 crore over previous year. Gross NPAs of the bank reduced from 5.86% in FY 20 to 4.23 % in FY 21. Net NPAs of the bank are 0%. The bank has reported net profit of Rs 163 crore, up from Rs 120 crore in the previous year. This is the highest profit recorded by the bank in its history of 49 years.
Speaking on the impressive performance of the bank, Chairman Vivekanand Patki said, “With proper monitoring of the loan portfolio, we have managed to bring down the net NPAs to 0%. The bank is holding provision for bad debts in excess of its NPAs. When the need for capitalisation is being discussed across the banking industry, bank’s capital adequacy ratio is robust at 16.16%.”
“We shall be celebrating golden jubilee of the bank in current year and have set ourselves certain business targets. With more than adequate capital headroom and strong liquidity, we are confident, we would be able to surpass the same. We shall continue to be cautious in our approach,” he added.