Mmcb Burns Hole In Sector Financials

A provisioning of Rs 1,255 crore by the Madhavpura Mercantile Co-operative Bank (MMCB) saw urban cooperative banks end fiscal 2000-01 with a loss of Rs 910.52 crore in 2000-01 against an aggregate net profit of Rs 310.10 crore in 1999-2000. However, operating profit of UCBs for fiscal 2001 went up by 4.65 per cent to Rs 689.70 crore.

Income of the UCBs for 2000-01 increased by 17.17 per cent to Rs 4,954.33 crore from Rs 4,228.26 crore in the previous fiscal, while the expenditure went up by 49.68 per cent to Rs 5,864.65 crore from Rs 3,918.16 crore in 1999-2000. Interest income were up by 16.73 per cent to Rs 4,619.95 crore. Other income grew by 23.64 per cent to Rs 334.38 crore.

 

Interest expenditure went up by 21.63 per cent to Rs 3,399.13 crore, while operating expenses were up by 11.75 per cent to Rs 865.50 crore. Wage bill of the sector grew by 10.76 per cent to Rs 498.22 crore in 2000-01 from Rs 449.82 crore in the previous financial year.

Gross non-performing assets of the urban cooperative banks made a minor decline from 12.2 per cent as on March 31, 2000 to 12.1 per cent in March 31, 2001. Total assets of the sector increased by 18.11 per cent during 2000-01 to Rs 43,607.32 crore.