Tripura Gramin Bank posts profit for 12th consecutive year despite economic slowdown
Tripura Gramin Bank (TGB), one of the prominent banks among India's 43 Regional Rural Banks (RRBs), has achieved profitability for the 12th consecutive year despite the economic slowdown caused by the COVID-19 pandemic.
In the fiscal year 2022-23, the bank recorded a net profit of Rs 3.62 crore and conducted business worth Rs 11,271.92 crore, according to the Chairman of TGB, Satyendra Singh.
Singh highlighted that as of March 2023, the bank reported an operating profit of Rs 23.62 crore, with a net profit of Rs 3.62 crore. In the previous fiscal year, 2021-22, the bank's net profit stood at Rs 143.14 crore, and the operating profit amounted to Rs 282.40 crore.
The decline in profit during the last financial year was attributed to the global economic recession and the absence of significant industrial and entrepreneurial projects in Tripura.
Despite these challenges, TGB experienced a growth of 7.04 percent in total business, reaching Rs 11,271.92 crore by March 2023, compared to Rs 10,530.77 crore in the 2021-22 fiscal year.
The bank, which operates through 148 branches and 15 Ultra Small Branches across Tripura, successfully eliminated the accumulated loss of Rs 139.40 crore incurred in the financial year 2012-13 by consistently generating net profits.
During the 2022-23 fiscal year, TGB witnessed a 3.94 percent increase in deposits and a 15.54 percent increase in advances compared to the previous year.
The bank's Credit Deposit Ratio rose from 36.44 percent to 40.50 percent in the 2022-23 fiscal year. However, it still lags behind the nationalized banks in Tripura, which have a CD ratio of 55 percent.
Under the partnership between TGB and Punjab National Bank (previously United Bank of India), the bank disbursed a significant amount of Rs 1,235.57 crore through various lending schemes in the 2022-23 financial year. The bank also managed to reduce its Non-Performing Assets (NPA) from Rs 190.62 crore in March 2022 to Rs 165.62 crore in March 2023.
The government of India holds a 50 percent stake in TGB, while Punjab National Bank and the Tripura government hold 35 percent and 15 percent stakes, respectively.
Singh acknowledged that TGB could have achieved higher profits and business growth if it weren't for the adverse impact of the COVID-19 pandemic and the resulting economic recession. He emphasized that the bank primarily operates in rural areas, where Tripura lacks major industries.
Since its inception 47 years ago with a meager deposit of Rs 2.82 lakh and advances of Rs 1.70 lakh, TGB has witnessed remarkable progress.
The bank's total business volume currently stands at Rs 4.52 lakh. Singh proudly stated that as of March 31, 2023, TGB's per-employee business amounted to Rs 12.85 crore, surpassing that of public sector banks. He also emphasized that TGB is well-capitalized among the 43 RRBs operating across the country.
With its extensive reach, covering more than 75 percent of Tripura's population, particularly in rural and interior areas, TGB operates 33 ATMs. The bank actively participates in the implementation of flagship programs initiated by the Central government, including PM Suraksha Bima Yojana, PM Jeevan Jyoti Bima Yojana, Atal Pension Yojana, Kisan Credit Card, Mudra Loan, and others.
These initiatives aim to support self-employment and self-help groups by providing advances for dairy farming, piggery, poultry, fishery, and various small trades and businesses.
The 43 RRBs collectively operate through a network of approximately 21,800 branches, catering to 685 districts in 26 states across India. (Edited)