Financial Daily from THE HINDU group of publications
Wednesday, Sep 28, 2005
Financial Daily from THE HINDU group of publications Wednesday, Sep 28, 2005 |
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Money & Banking
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Co-operatives Visakha co-op bank to pay 10 pc dividend Our Bureau
Visakhapatnam , Sept. 27 VISAKHAPATNAM Co-operative Bank Ltd has declared 10 per cent dividend for 2004-05. The decision was announced at its annual general meeting here. According to the report read out by the director, Mr Ch. Raghavendra Rao, the bank's deposits amounted to Rs 243.78 crore, registering a growth of 1.21 per cent, and the advances Rs 142.57 crore, a growth of only .076 per cent. He said the bank was facing stiff competition from the private and the public sector banks in loan disbursement. During the year (2004-05), there were 22,962 shareholders and the share capital amounted to Rs 12.17 crores, a growth of 10 per cent over the previous year, he said. The net NPA amounted to 4.83 per cent of the advances during the year and the aim was to bring it down to less than 2 per cent. The bank had advanced loans to sugarcane farmers in the Thandava Co-operative Sugar Factory zone at Payakaraopeta in Visakhapatnam district and the factory management, which had recovered the loans from the farmers, was not paying back the bank. Legal proceedings would be initiated against the management, he told the shareholders. The net profit amounted to Rs 2.02 crore during the year. The computerisation of the branches would be completed by next year. Mr M. Anjaneyulu, Chairman, said the urban co-operative banks were playing a crucial role. There were 2,105 urban co-operative banks in the country by March 2005, with deposits of over Rs 1 lakh crore and advances of Rs 67,000 crore. He said the deposit insurance was being collected on the total amount but the cover was limited to Rs 1 lakh. "It is irrational. The cover should be extended to the total amount. If necessary, the premium could be hiked. Or the RBI should permit banks to get insurance cover for deposits above Rs 1 lakh from other insurers,'' he said.
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