- In a major leap towards financial recovery, Maharashtra’s well-known multi-state scheduled urban cooperative bank, Abhyudaya Co-operative Bank, has announced a remarkable turnaround for the fiscal year 2024–25.
- The bank reported a solid operating profit of Rs 64.99 crore, a significant jump from Rs 39.84 crore the year before.
- It also declared a gross profit of Rs 34.87 crore and a net profit of Rs 5.22 crore.
- Thanks to the guidance of RBI-appointed Administrator Satya Prakash Pathak and his team, the bank has not only improved its operational performance but has also made progress in cutting down its long-standing accumulated losses.
- In an interview with Indian Cooperative, the bank’s Interim CEO Barun R G Upadhyay shared a sense of cautious optimism about the bank’s recovery journey.
In a major leap towards financial recovery, Maharashtra’s well-known multi-state scheduled urban cooperative bank, Abhyudaya Co-operative Bank, has announced a remarkable turnaround for the fiscal year 2024–25.
The bank reported a solid operating profit of Rs 64.99 crore, a significant jump from Rs 39.84 crore the year before. It also declared a gross profit of Rs 34.87 crore and a net profit of Rs 5.22 crore.
Thanks to the guidance of RBI-appointed Administrator Satya Prakash Pathak and his team, the bank has not only improved its operational performance but has also made progress in cutting down its long-standing accumulated losses.
In an interview with Indian Cooperative, the bank’s Interim CEO Barun R G Upadhyay shared a sense of cautious optimism about the bank’s recovery journey. “We’ve worked together to pull the bank out of the red. While we still have some accumulated losses, we’re confident that they will be completely eliminated in the coming years,” he stated.
He went on to say, “We truly appreciate the trust our depositors have placed in us. This year’s performance lays a strong foundation for our future. We are dedicated to maintaining transparent governance, upholding cooperative principles, and ensuring financial discipline.”
Upadhyay recognized that while challenges remain, FY 2024–25 has been a pivotal year, showcasing stability and renewed energy in the bank’s quest for long-term sustainability.
As of March 31, 2025, the bank’s accumulated losses decreased to Rs 346.52 crore, down from Rs 371.50 crore the previous year, marking a net reduction of Rs 24.98 crore. This decrease occurred even with allocations from this year’s net profit of Rs 29.64 crore towards statutory reserves and regulatory provisions, as required by cooperative banking regulations.
The bank has seen a notable improvement in its asset quality. Gross Non-Performing Assets (NPAs) have decreased from Rs 1,140.46 crore to Rs 949.01 crore, and Net NPAs have dropped significantly from Rs 478.23 crore to Rs 253.25 crore. The Provision Coverage Ratio (PCR) has also risen impressively from 57.08% to 73.14%, showcasing stronger provisioning and more effective risk management.
According to the audited figures, the bank’s total business reached Rs 14,193 crore as of March 31, 2025. Deposits increased to Rs 9,327 crore from Rs 9,118 crore, while the bank maintained a solid CASA ratio of 43%. However, advances fell to Rs 4,866 crore from Rs 5,591 crore, mainly due to significant recoveries in NPAs and a strategic reduction in large exposures to align with RBI regulations.
The bank is now prioritizing retail and small SME loans, which has notably boosted the share of retail loans compared to corporate and commercial lending. Although deposit growth is promising, the drop in advances reflects the bank’s cautious lending strategy and its dedication to cleaning up its balance sheet, adhering to regulations, and enhancing asset quality.
While Abhyudaya Co-operative Bank has made impressive strides in strengthening its financial health and operational stability during FY 2024–25, it still faces some challenges.
Looking ahead, the bank plans to further increase the proportion of retail loans while ensuring a strong core and CASA deposit base. It is also considering significant upgrades to its IT infrastructure and digital banking services.
Overall, the steady improvement in profitability, asset quality, and cost management indicates a positive trend. With a continued emphasis on governance, compliance, and building depositor trust, the bank seems well-equipped for sustained recovery and long-term growth.