Tripura Gramin Bank, a subsidiary of Punjab National Bank (formerly United Bank of India), has recorded a 7.04 percent increase in total business, amounting to Rs 11,271.92 crore as of March 31, 2022, compared to Rs 10,530.71 crore in the previous fiscal year. However, the bank has experienced a decline in operating profit, which decreased from Rs 282 crore in the 2021-22 financial year to Rs 23 crore in the 2022-23 financial year. In a press conference, the bank’s chairman, Satyendra Singh, attributed the decline in operating profit to changes in accounting procedures and market losses.
Business Growth and Deposit Increase: Despite the decline in operating profit, Tripura Gramin Bank’s total business has grown by 7.04 percent, supported by a 15.54 percent increase in advances. The bank’s deposit also witnessed a growth of 3.94 percent, reaching Rs 8,022.56 crore as of March 31, 2023, compared to Rs 7,718.34 crore in the previous year. Singh highlighted that the bank’s credit-deposit (CD) ratio stands at 40.50 percent, reflecting a healthy balance between loans and deposits.
Reasons for Decline in Operating Profit: Chairman Satyendra Singh explained that the decline in operating profit can be attributed to changes in accounting procedures mandated by the Reserve Bank of India (RBI) and recommended by the bank’s special auditor. Previously, provisions were considered part of the operating profit, resulting in one-time tax payments. However, under the new guidelines, provisions are categorized as expenses, leading to a reduction in operating profit. Additionally, the bank faced a market loss of Rs 95 crore due to uncontrollable market conditions. Singh further mentioned that provisions of Rs 25 crore were made each quarter for retired employees, resulting in a total provision of Rs 98 crore for the entire year and contributing to the decline in operating profit.
Reduction in Non-Performing Assets (NPAs): Tripura Gramin Bank has made progress in reducing non-performing assets (NPAs). The gross NPA decreased from Rs 190.62 crore as of March 2022 to Rs 165.62 crore as of March 2023. This represents a reduction of Rs 25 crore and a decline in the gross NPA ratio from 6.78 percent to 5.10 percent. The net NPA ratio stands at 1.44 percent, indicating improved asset quality.
Other Key Highlights: The bank achieved several notable milestones and awards during the 2022-23 financial year. It received recognition for its performance in various government schemes and initiatives, including Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana. Additionally, Tripura Gramin Bank provided financial support to various sectors such as MSMEs, agriculture, education, women entrepreneurs, and minority communities. The bank also sanctioned loans under different government schemes, including Kisan Credit Cards, Mudra loans, and Stand-Up India.
Despite a decline in operating profit, Tripura Gramin Bank has witnessed overall business growth, with an increase in total deposits and advances. The bank’s efforts to reduce NPAs and support various sectors through government schemes have been commendable. Going forward, it is crucial for the bank to address the challenges affecting its operating profit and maintain its focus on strengthening asset quality and sustaining business growth.