Page 18 - Banking Fiannce March 2018

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Improved performance of urban co-operative banks
Co-op bank's fraudulent
Urban cooperative banks (UCBs) recorded an increase in net profit to Rs.3,900
CEO
crore in 2016-17, compared with Rs.3,700 crore in
The CEO of a co-operative bank at 2015-16.
Ulhasnagar,
Mumbai was While the loans and advances of UCBs stood at
boked for al- Rs.2.61 lakh crore (Rs.2.44 lakh crore), gross non-
legedly tam- performing assets (NPAs) reached Rs.18,600 crore
pering with (Rs.15,000 crore) during the period.
the account of a customer and sanc- The report said that the balance sheet of UCBs expanded in 2016-17 on account
tioning overdraft facility of Rs 25.60 of higher growth in net worth (capital plus reserves) and deposits on the liabil-
crore to 16 companies. He was ity side. The capital of UCBs increased to Rs.12,200 crore in 2016-17 from
booked under IPC sections related to Rs.11,000 crore in 2015-16.
cheating and forgery, among others,
on the basis of a complaint filed by While reserves went up to Rs.33,500 crore (Rs.29,600 crore) during the period,
the bank customer having overdraft deposits increased to Rs.4.43 lakh crore (Rs.3.92 lakh crore). India has 95,946
facility to Rs. 6 crores. credit cooperatives. This includes 1,562 UCBs and 94,384 rural cooperatives.
Consolidation of Re-
Co-op bank promotes nomadic tribes
gional Rural Banks
The Kalupur Co-operative Bank in Ahmedabad offers accounts to members of
NABARD plans to consolidate regional nomadic tribes, who have no permanent address or
rural banks (RRBs) proof of income, on the basis of trust. It is the only
to make them fi- independent bank in the country to issue loans to
nancially indepen- members of the Vimukta Jatis - who have taken up
dent. There are 56 around 600 of its 4,500 accounts dedicated to
RRBs in the country, microfinance.
down from over 150 in the '90s and it
is believed that the administration Since 2006, the bank has issued loans of Rs 50,000 to 100 nomadic tribals to
considers that one RRB a state is purchase houses under a government scheme, and disbursed loans of a maxi-
ideal. The NABARD Act Amendment mum of Rs 25,000 to others to expand their small businesses at a 10% rate of
Bill passed by the Parliament last interest.
week allows it to almost immediately
The bank can issue loans on trust because it has built up long-term relationships
double its paid-up capital to Rs. 9,600 via the Vicharata Samuday Samarthan Manch (VSSM), an Ahmedabad-based
crore from Rs. 4,700 crore.
organisation that works with nomadic tribes.

18 | 2018 | MARCH | BANKING FINANCE