Meet Tripura Gramin Bank, a regional rural bank headquartered in Agartala established on 21st December, 1976 under the sponsorship of the United Bank of India.
The bank covers 75 percent of the population of the North-east state of Tripura. However, the one thing that makes it a compelling case study are its profits.
Tripura Gramin bank recently announced a profit of Rs 44.43 crores in the first half of the current fiscal. If that doesn't sound convincing, the bank's Chairman Mahendra Mohan Goswami reveals that his bank is habituated to profits - so much so that the bank never saw a year of loss since 2001-02. That's approximately 18 years and 8 months.
In fiscal year 2018-19, the Tripura Gramin Bank posted net profits of Rs 125.45 crores. This is the highest since the bank began business. The bank also crossed a milestone the previous financial year - it set business of Rs 9,000 crores.
The Chairman suggests that his bank is gearing to make March 2020, the most profitable year in the bank's history. It will be 19th most profitable year if the bank posts profits.
Surprisingly, the 160-branch strong, including 12 Ultra Small Branches (USB) as on date, has profits larger than that of at least 7 large PSU banks put together.
Take into comparison the first 6 months or first half of the financial year (two quarters of June & Sept), the bank has achieved Rs 44.43 crores in net profits in the first 6 months. The corresponding period of last fiscal (2018-19) the bank achieved net-profit of Rs 11.36 crores.
Net profits, as reported in latest balance sheets of Punjab & Sind Bank, Syndicate Bank, Union Bank of India, Uco Bank, Indian Overseas bank, Allahabad Bank, IDBI Bank shows a negative net profit for the 6 months between Apr-Sept.
Here's the data:
|Punjab & Sind Bank||-30.28||-468.73||-499.01|
|Union Bank of India||224.43||-1193.61||-969.18|
|Indian Overseas Bank||-342.08||-2253.64||-2595.72|
*Clicking on the bank's name will take you to the Bombay Stock Exchange filing page.
There is probability that TGB's annual net profits in March could head slightly higher than private banks such as Lakshmi Vilas (numbers in negative) and Dhanalaxmi Bank (numbers in positive). That, solely going by an insider-account of the bank's new target. The bank is looking to cross Rs 10,000 crores in business in 2019-20.
The bank may also be looking to improve its Credit Deposit Ratio (CDR) of 40.60 percent. National bank's have a CDR of 66 per cent.
Other Key accomplishments from the bank are as follows:
• Tripura Gramin Bank is the first RRB to have been accorded permission by the RBI to start treasury function for the Tripura government and open a currency chest.
• TGB posted s net profit of Rs 44.14 crore in financial year 2017-18.
• Deposits increased by 8.94 per cent and crossed Rs 6617 crore as on September 30, from Rs 6073.81 crores on September 30 last year.
• 225 Aadhaar-enabled micro ATMs and 192 business correspondents to hand out money and other banking services at the doorsteps of customers.
• To encourage entrepreneurship among the rural youth and avoid the guarantor system in getting loans from the bank, the Gramin Bank has started forming Joint Liability Group (JLG), and so far around 6,000 such groups were formed involving over 20,000 people. • The TGB has been implementing all flagship programmes of the central government including the Pradhan Mantri Kisan Sampada Yojana.
Tripura's Chief Minister Biplab Kumar Deb attributed the growth in Tripura to the BJP government. Speaking at an event recently, he said that the previous Left-Front government had left behind loan liabilities estimated at Rs 13,000 crores. He also said that credit-deposit ratio of the nationalised banks in Tripura increased from 48 to 66 percent, an 18 percent growth in the 20-month term of BJP rule in the state. Deb found it still below the national average.
Previously, India had 56 RRBs. Many of them have reportedly amalgamated among themselves, while others have merged with their sponsor banks. The example of this RRB however is a case-study not only for several banks but also for policy-makers to take note of.
*With inputs from IANS.
Disclaimer: On 30th August, the government announced a grand merger of 10 PSBs. The merger commences from April 2020 onwards. Oriental Bank of Commerce with United Bank of India and Punjab National Bank. Canara Bank with Syndicate bank. Union Bank of India, Andhra Bank and Corporation Bank into one. Indian Bank and Allahabad Bank into one. Image sourced from Tripura Gramin Bank.