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Utkal Grameen Bank Shows Promising Trend in FY 23-24 Amid Staff Shortage
Utkal Grameen Bank’s commendable FY 23-24 performance amidst staff shortages highlights operational challenges despite robust financial results.
Author: Saurav Kumar
Published: April 3, 2024
As FY 2023-24 concludes, Odisha-based Utkal Grameen Bank faces a staff shortage, notably lacking office assistants and officers across all scales 1 to 4. However, the bank is expected to come up with promising financial results.
Implication of Vacancies
The bank grapples with a scarcity of office assistants and officers significantly affecting its operational capacity. This shortage places a strain on the bank’s already limited resources, particularly impacting its ability to deliver banking services, especially in rural areas, where it primarily operates.
With 433 branches, Utkal Grameen Bank operates in 17 districts of Western and Southern Odisha.
An official from the bank elucidated the implications of staff shortage, highlighting instances where officers are tasked with managing branches exceeding their designated business volumes, as outlined by the Mitra Committee Report. For instance, a scale 2 officer may find themselves overseeing a scale 3 branch, leading to an undue burden on these individuals.
The Government of India in 2012 constituted a committee under the Chairmanship of Shri. S.K Mitra, Executive Director of NABARD to re-assess the manpower planning and staffing pattern in RRBs and it was known as Mitra committee.
One of the officials of the bank told Kanal, “The shortage amounts to 127 officers across scales 1-4 and 83 office assistants, directly contravening the S.K. Mitra committee's recommendations on manpower planning and staffing patterns. This deficit not only intensifies work pressure but also extends working hours for existing staff members.”
He elaborated, “In branches where office assistants are absent, officers are burdened with additional tasks such as cash management, account openings, overseeing government schemes, and handling routine branch operations like data entry.”
The scarcity includes 16 scale 1 officers, 76 scale 2 officers, 26 scale 3 officers, and 9 scale 4 officers.
On similar lines, Uttarbanga Kshetriya Gramin Bank reported to have 40 branches devoid of clerks and functioning in staff shortage. Filling the 30,000 vacancies across 43 RRBs has long been urged by the All India Rural Regional Bank Employees’ Association (AIRRBEA).
However, amidst the staff shortage, a glimmer of hope appears to be on the horizon for Utkal Grameen Bank.
Promising Financial Trend in FY 23-24
Despite these staffing challenges, Utkal Grameen Bank has demonstrated resilience, with unaudited financial data for the fiscal year 2023-24 indicating promising results.
Image: Unaudited Financial Performance FY 2023-24
Image Credit: Utkal Grameen Bank
The bank’s unaudited assessment post-March reveals a remarkable performance, with profits soaring to Rs. 142 crore, marking a staggering growth of 121%, excluding provisions.
Notably, the Net Non-Performing Asset (NPA) stands at an impressive 0%, while Gross NPA levels have significantly reduced from Rs. 497.18 crore to Rs. 355.38 crore, reflecting a decline from 13.26% to 7.46%.
Furthermore, the Provision Coverage Ratio (PCR) stands at an exemplary 100%, underscoring the bank’s robust risk management practices. Loan advances have witnessed a substantial growth, surging from Rs. 3757 crore to Rs. 4760 crore, indicating a rise of 133%.
Despite its promising financial trajectory, Utkal Grameen Bank’s journey underscores the pressing need to address staffing shortages to alleviate work pressure and ensure a better work-life balance for its employees.