Pune: In a historic development, the Reserve Bank of India (RBI) has approved the issuance of ₹500 crore worth of long-term bonds for the State Cooperative Bank. This marks the first time in history that a cooperative bank has received such an approval, signaling strong financial stability and compliance with all RBI-set financial parameters.
State Cooperative Bank's Strong Financial Performance
The State Cooperative Bank has consistently recorded high profits over the past five years. The profits in the last three years alone are as follows:
₹603 crore in 2022
₹609 crore in 2023
₹615 crore in 2024
The bank's Capital Adequacy Ratio (CAR) stands at 16.34%, which is higher than both the RBI’s prescribed standard and the national benchmark.
Key Financial Strengths of the Bank
Provision Coverage Ratio (PCR): 83.28% (National average: 67.58%)
Management Cost: 0.55% (National benchmark: 0.98%)
Business per Employee: ₹76.15 crore (Twice the national average of ₹35.74 crore)
Business per Branch: ₹1,004.64 crore (4.5 times the national average)
With a net worth exceeding ₹5,000 crore, the State Cooperative Bank holds the distinction of being the only cooperative bank in India to achieve this financial milestone.
Bond Issuance Details
Following the RBI’s approval, the State Cooperative Bank will soon initiate the offer process for these ₹500 crore long-term bonds.
Minimum investment for individuals: ₹10,000
Minimum investment for institutions: ₹50,000
Since the funds raised through these bonds will be added to the bank’s capital, it will further strengthen the financial position of the bank.
Impact on the Cooperative Sector
The bond issuance is expected to reinforce the three-tier cooperative banking structure, benefiting various sections of society. Expressing confidence in this initiative, State Cooperative Bank Administrator Vidyadhar Anaskar stated that this move will enhance financial stability and contribute to the overall development of the cooperative banking sector.