Page 23 - Banking Finance May 2021

CO-OPERATIVE BANK NEWS

effective recoveries and lower non- of business on January 5, 2019. The Rs. 380 crore was repaid by the
performing assets. CCBL has improved validity of the "all-inclusive directions" Congress Government.
its financial condition and booked an was extended from time to time, the "To bring the cooperative banks on a
operating profit of Rs. 2.86 lakh in last being up to April 5, 2021. par with national and private ones, we
2020-21 as against an operating loss of Among other restrictions, the bank will improve the online infrastructure
Rs. 108.56 lakh in the previous fiscal. was barred from granting or renewing by unifying all 802 branches for which

The bank, under the management of any loans and advances, making any a request has already been made to
the Board of Administrators, started investment, incurring any liability, the RBI," he further added.
to take action against the defaulters without prior approval in writing from
under provisions of the SARFAESI Act RBI. Shivalik Small Finance
and were able to recover Rs. 685.81 RBI, in a recent circular, stated,
lakh in NPA accounts during 2020-21, "Reserve Bank of India, on being Bank: First cooperative
out of which recovery of Rs. 273.26 satisfied that in the public interest it is bank to get SFB licence,
lakh was made in March, 2021 itself.
necessary to do so... Hereby starts operations
According to an official spokesperson, withdraws with effect from April 05, Reserve Bank of India has recently
"In spite of COVID-19 restrictions, the 2021, All-Inclusive Directions issued to stated that Shivalik Small Finance Bank
bank has improved its financial health Youth Development Co-operative Bank has commenced operations as a small
and registered operating profit for the Limited, Kolhapur, Maharashtra." finance bank with effect from April 26,
year 2020-21. However, the bank is still 2021. RBI has issued a licence to the
grappling with the issue of higher Committed to uplifting
NPAs." bank under Section 22 (1) of the
cooperative banks: Banking Regulation Act, 1949 to carry
The management has also taken on the business of small finance bank
numerous steps to improve the Sukhjinder Singh Randhawa in India. Thus, it has become India's
financials of the bank for sustaining and Punjab Jails Minister Sukhjinder Singh first Urban Co-operative Bank (UCB) to
registering further improvement in all Randhawa has recently said that the transition to a Small Finance Bank
the segments. CCBL has succeeded in Punjab Government had strengthened (SFB). The in-principal approval gave
making profits as the bank's board co-operative sector institutions that SMCB 18 months' time to commence
constituted special recovery teams to were on the verge of closure during the the business.
keep a close vigil on a case-to-case tenure of the previous government.
basis to arrest the slippage of its loans During the inauguration of the newly- As per the scheme, the minimum net
to NPAs. worth of the proposed SFB was set at
opened branch of Patiala Central
Rs. 100 crore and the minimum capital
Cooperative Bank Limited at Jalalpur
RBI withdraws restrictions adequacy ratio of 15% from the date
village, Randhawa said that the State of commencement of business.
on Youth Development Government under the leadership of According to its annual report, Shivalik
Co-operative Bank Chief Minister Captain Amarinder Mercantile Cooperative Bank's net
Singh, had given state-of-the-art
In a relief to the customers of Youth facilities to its account holders. He said worth stood at Rs. 77.21 crore and the
Development Co-operative Bank Ltd., the previous Government had insisted capital adequacy ratio was at 13.07%
Kolhapur, RBI has recently withdrew all on abolishing cooperative banks by as on March, 2019.
restrictions imposed on the lender giving loans to their near and dear Shivalik Mercantile Cooperative Bank is
since January, 2019. ones, but we were committed to registered under the Multi-state
Several restrictions, including a cap of restoring the glory of these institutions Cooperative Societies Act, 2002 and
Rs. 5,000 on withdrawals from the by getting repayment from big operates through 31 branches across
Youth Development Co-operative Bank defaulters. He said of Rs. 400 crore Uttar Pradesh, Madhya Pradesh and
Ltd., were imposed by RBI in the wake taken by the then Akali Dal Uttarakhand. It acquired two Madhya
of its worsening financial position, Government for running the Atta Dal Pradesh-based cooperative banks in
initially for six months from the close scheme through Markfed and PUNSUP, 2010 and 2012. T

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