Co-op Bank of Rajkot net profit at Rs 8 cr

The Co-operative Bank of Rajkot, also known as Raj Bank, has posted a net profit of Rs 8.05 crore in 2003-04.

The bank's managing director Ramnikbhai Dhami said share capital rose by 20 per cent at Rs 4.75 crore, while reserves grew 18 per cent to Rs 40.75 crore.

"While we focus on providing quality service, we have the lowest gross NPAs among co-operative banks in the country," he said. The bank announced its results for the year on March 31, 2004.

Raj Bank's income from operations rose 4 per cent to Rs 31 crore and gross profit stood at Rs 8.05 crore. The bank has maintained zero NPAs for the last 13 years.

Raj Bank's deposits surged 23 per cent to Rs 261 crore, while advances rose 22 per cent to Rs 112 crore. Government-approved investment of the bank grew 45 per cent at Rs 77.59 crore.

The performance of the bank is to be viewed in the light of the bad state of co-operative banks in the state. "Despite the general lack of faith in co-operative banks in Gujarat, banks in the Saurashtra and Kutch areas have posted a strong growth in deposits," Dhami said.

The 58 co-operative banks in the Saurashtra and Kutch area have deposits of over Rs 4000 crore and advances of over Rs 3000 crore.

"The bank has not granted any new advances or renewed earlier advances to its directors or their relatives. As on April 31, 2004, the bank's advances to directors and their relatives stood at Rs 10.59 lakh "" just 0.10 per cent of the total advances. The value of mortgaged properties is much higher," Dhami said.

Raj Bank, which has just completed 25 years, is the first co-operative bank in the Saurashtra region to have an automated teller machine (ATM).

The bank has 11 branches in Rajkot, Junagadh and Jamnagar with 1,31,140 depositors. It has three ATMs.

"The success of our bank is a tribute to the people of Rajkot as a bulk of our business is concentrated in this area," Dhami said.