Page 19 - Banking Finance May 2025
P. 19

ther adopted the Model Bye-laws for
                                                                               PACS or aligned their existing bye-laws
                                                                               accordingly.


                                                                               RBI Intensifies Regulatory
                                                                               Scrutiny  of  Cooperative
                                        Ò»©­                                   Banks; Maharashtra Leads

                                                                               in Restrictions

                                                                               The  Reserve  Bank  of  India  (RBI)
                                                                               stepped up regulatory actions against
                                                                               cooperative banks during the financial
                                                                               year 2024-25, imposing fines on four
                                                                               State Cooperative Banks (StCBs) and 51
           RRBs Record Highest-Ever Profit of Rs. 7,571 Crore                  District  Central  Cooperative  Banks
           in FY24: Finance Ministry                                           (DCCBs), according to a review by In-
                                                                               dian Cooperative.
           Regional Rural Banks (RRBs) have posted a record consolidated net profit
           of Rs. 7,571 crore for the financial year 2023-24, the government informed  Urban Cooperative Banks (UCBs) faced
           Parliament.                                                         the most scrutiny, with 215 penalties
                                                                               imposed. Additionally, seven new UCBs
           Minister of State for Finance Pankaj Chaudhary said in a written reply in the
                                                                               were  placed  under  All-Inclusive
           Rajya Sabha that the financial health of RRBs has shown consistent improve-
                                                                               Directions (AID), limiting their opera-
           ment, reflected in key parameters such as Capital to Risk-Weighted Assets  tions, while four UCBs were removed
           Ratio (CRAR), deposits, advances, non-performing assets (NPA), and credit-
                                                                               from AID following improved perfor-
           deposit (CD) ratios.                                                mance.
           The total balance sheet size of RRBs expanded from Rs. 7.04 lakh crore in  As of March 31, 2025, Maharashtra led
           FY22 to Rs. 8.40 lakh crore in FY24. Net NPA levels fell sharply from 4.7% to  with nine UCBs still under AID, fol-
           2.4% during the same period, while the credit-to-deposit ratio improved  lowed  by  Karnataka  with  five,  and
           from 64.5% to 71.4%, indicating healthier operational performance by the  Uttar  Pradesh  with  four.  Shimsha
           RRBs.                                                               Sahkara Bank in Karnataka continues
                                                                               to function under a High Court stay
         Over 12,900 New Coopera-           and deepen its grassroots reach. The  order despite license cancellation pro-
                                            initiative envisions establishing new  ceedings.
         tives Established in Two
                                            multipurpose  Primary  Agricultural  RBI also imposed penalties on StCBs
         Years: Amit Shah                   Credit Societies (M-PACS), dairy, and  from  Odisha,  Himachal  Pradesh,
         More than 12,957 new multi-purpose  fishery cooperative societies across all  Jharkhand, and Manipur for supervi-
         primary agricultural credit societies,  panchayats and villages over a five-  sory  violations,  with  Himachal
         dairy, and fishery cooperative societies  year period.                Pradesh's Jogindra Central Co-opera-
         have been established across India over  According to the National Cooperative  tive Bank fined twice.
         the past two years, Cooperation Minis-  Database,  as  of  January  27,  2025,
         ter Amit Shah informed Parliament.  Rajasthan accounted for 1,995 new RBI  Cancels  Banking  Li-
         In a written reply to the Lok Sabha,  cooperatives,  Odisha  1,535,  Uttar  cence of Colour Merchants
         Shah  said the  government  had ap-  Pradesh 1,464, and Jammu and Kash-
         proved a plan in February  2023 to  mir 1,118. Shah further added that 32  Co-operative Bank
         strengthen the cooperative movement  states and Union Territories have ei-  The Reserve Bank of India (RBI) has

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