 "UCBs’ asset quality and finances deteriorate in FY20, says RBI report")
The financial and asset quality profile of urban co-operative banks (USBs) deteriorated in the financial year 2019-20 (FY20), with the sector reporting net loss, an uptick in bad loans, and a fall in the provision coverage ratio.
Gross non-performing assets (NPAs) rose from 7.3 per cent in 2018-19 to 10.8 per cent in FY20. In absolute terms, NPAs worth Rs 10,900 crore were added, taking the tally to Rs 33,010 crore by March 2020.
The rise in NPAs may partly be attributable to stagnant growth in loans and advances and weak balance sheets, according to the Reserve Bank of India’s (RBI’s) Trends
