VCBL turnover crosses Rs 4701 Crore in FY 17-18: Chairman

VCBL turnover crosses Rs 4701 Crore in FY 17-18: Chairman

Agency News

Visakhapatnam, Sep 12: Visakhapatnam Co-operative Bank Limited (VCBL), one of the leading Urban Co-operative banks in South has announced that its business turnover has crossed Rs 4,701 crore with deposits being Rs 2,730 crore and loans Rs 1,970 crore during the fiscal 2017-18.

Addressing a media conference here on Wednesday, Bank Chairman Ch Raghavendra Rao said the the bank had earned a profit of Rs.33.71 crore during 2017-18 as against Rs.31.29 crore achieved during 2016-17.

The bank, one of the profitable bank is on an expansion drive, but the RBI is not permitting it to open more branches, he added.

Rao said the bank, being established 103 years ago, had 50 branches in all the 13 districts of Andhra Pradesh besides Hyderabad in Telangana.

"Ours is one of the oldest urban co-operative banks in the country and is currently one of top 20 urban banks in the country, with deposits Rs 2,730 crore and advances Rs 1,970 crore. We have earned profit of Rs 33.71 crore for 2017-18, with the net NPA being only 1.54 per cent," he said.

He complained that the RBI was not permitting the bank to open more branches. "We want to set up at least four to five branches more in AP and a few more in Hyderabad. But the RBI has taken a policy decision not to accord sanction. We have also applied for scheduled status, which is also pending," the Bank Chairman said.

He said the commercial banks as well as private banks in the country were not functioning very well. "At present, the banking sector is in a deep crisis and many of the urban co-operative banks are much better placed than commercial banks and private banks. Even then the RBI is placing all sorts of restrictions on our growth," he said.

M Anjaneyulu, the former Chairman of the bank, said, "It is indeed ironical that at a time when the commercial banks are saddled with soaring NPAs, the Union Government as the owner does not assume responsibility for the banking sector crisis nor does the RBI as the regulator. Both the Government and the RBI are stifling the growth of urban co-operative banks," he alleged.

He said the RBI should sanction scheduled status to the Visakha Co-op Bank as the bank had met all the criteria and allow it to open more branches. (UNI)