The Hindu Business Line : Cosmos Co-op Bank posts 125 per cent increase in profit

HARNESSING the latest technology in banking as well as investment activities of the bank, expertise in treasury management seems to have augured well for the Cosmos Co-operative Bank Ltd, which has recorded 125 per cent increase in profit for the year ended March 2004.

Talking to newspersons, Prof Pramod Parkhi, Chairman of the bank, said the net profit has also risen to Rs 70 crore for the fiscal ended March 2004 against Rs 30 crore registered for the year ended March 2003. As on March 31, 2004 the deposits stood at Rs 2,483 crore and loans were at Rs 1,402 crore. Investments stood at Rs 1,279 crore and net worth was Rs 352 crore. The book value of the paid-up share of Rs 100 was currently at Rs 950, he said.

For the fiscal ended March 2004, the bank has earned operating profit of Rs 110 crore and CRAR (capital funds to risk assets ratio) was 16.40 per cent as against the minimum specified 9 per cent. It has also brought down the net NPA (non-performing assets) percentage to 2.14 per cent and the target that the bank has set itself for the current fiscal was to bring down the net NPA to zero per cent, Prof Parkhi said.

During 2003-04, he said the bank obtained membership of the Indian Financial Network (INFINET), Negotiated Dealing System (NDS) and Real Time Gross Settlement (RTGS) schemes. He said it is participating in the RTGS scheme introduced by the Reserve Bank of India. By the use of this system, it would be possible for any account holder to transfer the funds in any bank account throughout the country within a period of two hours without purchasing either demand draft or pay order of fax transfer or telegraphic transfer.

He said Cosmos Bank has also invested close to Rs 17 crore for creating new facilities at its data centre in Pune, at (Treasury) dealing room in Mumbai as well as at all branches.

Prof Parkhi said the bank has recently installed its own ATMs at 22 centres and plans to install another 11 ATMs at other centres. Cosmos Bank is also a participating member of BANCS scheme through which the account holders of Cosmos Bank could make use of around 4,000 ATMs centres set up by15 member banks such as UTI, Bank of India, Punjab National Bank etc.

He said its demat services are now being used by 55,000 account holders, either directly or through other associate co-operative banks.

Prof Parkhi said it has received RBI's permission to launch Bancassurance; and in order to start these services it has signed a memorandum of understanding with Bajaj Allianz General Insurance Co Ltd for selling general insurance products of the company.

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Cosmos Co-op Bank posts 125 per cent increase in profit