BUCB proposes 7% dividend

The 100-year-old Berhampur Urban Cooperative Bank (BUCB) has sought permission from the Reserve Bank of India (RBI) to provide 7 per cent dividend to its share-holders for 2007-08. The bank had got permission from RBI to declare dividend at 5 percent for 2006-07.

"As the bank is making profit, we have sought the permission from the RBI to declare dividend for 2007-08", said Deepak Patnaik, president, BUCB h. However, the RBI is yet to give its nod.

The cooperative bank has earned a profit of Rs 13.50 lakh up to February this year as against Rs 12.51 lakh in the previous year.

Such a significant earning is due to accelerated recovery of outstanding amounts and reduction of cost of establishments, Patnaik claimed.

The deposits of the bank as on February this year stood at Rs 27.18 crore as against Rs 26.55 crore in the same period of the previous year.

Similarly the bank’s investment in the same period this year was Rs 15.94 crore as against the investment of Rs 14.13 crore in the corresponding period of the previus year.

The working capital of the bank has grown from Rs 31.99 crore by the end of 2007-08 to Rs 34.56 crore by the end of February 2009.

The bank has proposed to revise its loan limit in different sectors and to introduce the Gold Loan Policy due to rise in market value of the precious metal.

Similarly, the bank has also decided to enhance the limit amount of the house mortgage loan from Rs 1.5 lakh to Rs 2 lakh. Besides, it proposed to introduce transport finance loans, personal loans and housing loans up to Rs 12 lakh.

In order to provide quick and efficient services, Patnaik said the bank was going to introduce the system of computerization. It would also install close circuit cameras (CCC) in the bank branches.