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Uttarakhand Gramin Bank Excels in Profit, Business and NPA Reduction for FY-24
Uttarakhand Gramin Bank demonstrates strong performance across all parameters, particularly excelling in managing NPAs and maintaining the lowest levels.
Author: Saurav Kumar
Published: May 23, 2024
Uttarakhand Gramin Bank (UGB) has delivered remarkable results for the fiscal year 2023-24. The bank’s audited financial data indicate a significant increase on all fronts reflecting an outstanding performance.
The FY 2023-24 data show that UGB has excelled across key metrics, including net profit, operating profit, advances, deposits, and Non-Performing Assets (NPAs). Despite encountering challenges such as ill equipped infrastructure, the bank has continued on an upward trajectory, demonstrating resilience and ability to serve customers while maintaining robust growth.
Profit, Deposits, Advances in Double Digit
UGB has achieved impressive results in its March audit, with a net profit of Rs. 75 crore, reflecting a significant increase of 72%. On the other hand, the bank's operating profit also skyrocketed to Rs. 121 crore registering an increase of whopping 82%.
In terms of deposits, it fared well with a rise of 10% to Rs. 7834 crore whereas the advances spiked 19% to Rs. 3748 crore.
Image: Financial Result of Uttarakhand Gramin Bank
Outstanding Show on NPA
The available data also show that UGB has made outstanding progress in reducing the NPA. In FY 24, the net NPA is merely 0.02% which amounts to Rs. 0.69 crore.
The low net NPA showcases the bank’s effective risk management strategies.
Uttarakhand Gramin Bank was established under the RRBs Act 1976, came into existence on 1st Nov. 2012, after the amalgamation of the Two Erstwhile RRBs namely Uttaranchal Gramin Bank and Nainital Almora Kshetriya Gramin Bank. The State Bank of India is its sponsor bank.
UGB is the second largest bank of Uttarakhand in terms of Branch Network. The area of operation of the Bank is spread with a network of 288 branches covering 13 districts with 290 branches.
Improvement in ROE and PCR
Uttarakhand Gramin Bank’s focus on rural customers is reflected in its Return on Equity (ROE) and Provision Coverage Ratio (PCR), despite challenges like inadequate infrastructure and staff shortages during its fiscal year 2023-24.
UGB achieved a ROE of 18.64% increase from 14.72% in FY 23, while its PCR reached 99.70% in FY 24 from 73.23% in FY 24, showing an improvement of 26.47% from the previous year. The bank’s business per branch also showed an improvement of 4.3%.
This outstanding performance underscores the bank’s dedication to its rural base and its ability to thrive despite adverse conditions. The growth in ROE and PCR indicates that UGB's approach is yielding significant results, reinforcing its commitment to serving the rural population.