Citizens' Cooperative Bank reports profit for 2020-21

After three years of straight loss, Citizens' Cooperative Bank has registered profit in 2020-21 on the back of effective recoveries and lower non-performing assets.

Citizens' Cooperative Bank Limited (CCBL) Jammu has improved its financial condition and booked an operating profit of Rs 2.86 lakh in 2020-21 as against an operating loss of Rs 108.56 lakh in the previous fiscal, an official spokesman said. The bank, under the management of the Board of Administrators, initiated action against the defaulters under provisions of the SARFAESI Act and were able to recover Rs 685.81 lakh in NPA accounts during 2020-21, out of which recovery of Rs 273.26 lakh was made in March itself, he added.

''In spite of COVID-19 restrictions, the bank has improved its financial health and registered operating profit for the year 2020-21. However, the bank is still grappling with the issue of higher NPAs,'' the spokesperson said.

The management has also taken various steps to improve the financials of the bank for sustaining and registering further improvement in all the segments, he noted.

CCBL has succeeded in making profits as the Bank's Board constituted special recovery teams to keep a close vigil on a case-to-case basis to arrest the slippage of its loans to NPAs, the spokesperson said.

The specific focus on recovery portfolio also included the requisite decision making for settlement of chronic default loans and causing recovery by disposing of/auctioning of seized properties of the defaulters under SARFAESI Act, including the auction of vehicles seized by the bank, he added.

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