Page 2 - Urban Cooperative Banks

RBI not comfortable with NPAs in UCBs, asks lenders to focus on governance

RBI Governor Shaktikanta Das on Monday said the central bank is "not comfortable" with the gross non-performing assets ratio of 8.7 per cent in urban cooperative banks (UCBs) and asked them to work towards improving the same. Addressing directors of UCBs in the financial capital at an RBI-organised conference, Das urged that such lenders should improve the governance standards, avoid related-party transactions and focus on credit risks, among others. It can be noted that the UCB sector has been fraught with multiple challenges and also witnessed difficult times in the recent past, like the implosion of the city-headquartered Punjab and Maharashtra Bank. Das reminded the directors of the UCBs that banks run on depositors and added that protection of the hard-earned money pooled in from the middle class, poor and retirees is far more sacred than going to a temple or a gurdwara. While the overall picture at an aggregate level looks nice, the situation on GNPAs and capital adequacy is

RBI notifies 4 key measures to strengthen 1,514 urban co-operative banks

Aiming to strengthen 1,514 urban co-operative banks, the Centre on Friday said the Reserve Bank has notified four key measures, including giving them two years more to meet the priority sector lending targets. The Ministry of Cooperation in a statement said that four important initiatives have been taken to strengthen 1,514 Urban Co-operative Banks (UCBs) in the country. "Pursuant to detailed discussions held by Union Home Minister and Minister of Cooperation Amit Shah, with Finance Minister Nirmala Sitharaman and Governor, Reserve Bank of India (RBI), the RBI has notified these vital measures to strengthen Urban Co-operative Banks," it said. The ministry has listed the four measures notified by the RBI. In order to expand their business, UCBs can now open new branches up to 10 per cent (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. UCBs have to get the policy approved by their board

Cosmos Coop Bank eyes more M&As in UCB space after Maratha Sahakari deal

Strategy forms part of lender's aim to expand its network to 200 branches

UCBs seek hike in cap on home loans, separate limit for commercial realty

Have also asked for revision in norms for gold loan repayments

Capital adequacy ratio norms enforcement for UCBs advanced to FY23-end

According to UCB executives, the RBI's move may put banks in a difficult position as only a few days are left to refigure the norms' enforcement

Urban Co-op Bank profiles improve on bad loan dip, better profitability

However, growth in deposits and advances took a knock as liabilities shrank on the back of high base in 2020-21, shows RBI Report on Trend and Progress of Banking in India

RBI revises norms for classifying UCBs as financially sound & well managed

The boards of the banks have to examine the compliance with the FWSM criteria and pass necessary resolutions and inform RBI immediately

RBI announces 4-tiered regulatory framework for urban cooperative banks

The Reserve Bank of India (RBI) on Thursday announced a four-tiered regulatory framework for categorisation of Urban Co-operative Banks (UCBs), Besides, the central bank has come out with norms pertaining to the net worth and capital adequacy of these banks. The four-tiered regulatory framework, based on size of deposits of the UCBs, will come into force with immediate effect. The extant regulatory framework classifies UCBs into two tiers -- Tier I and Tier II. In a circular, the RBI said given the heterogeneity in the cooperative sector, a tiered regulatory framework is required. Such a framework is needed to balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-a-vis the growth ambitions of the large-sized UCBs and undertake more complex business activities. "... it has been decided to adopt a four-tiered regulatory framework, as against the existing two-tiered framework, for categorisation of UCBs

Top headlines: Disinvestment target, RBI imposes penalty on 9 UCBs & more

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RBI imposes monetary penalties on nine urban cooperative banks

The bank regulator has fined two banks each from Odisha, Madhya Pradesh, and Gujarat, and one bank each from Chhattisgarh, Maharashtra, and Jharkhand

Maharashtra appoints liquidator to wind up Rupee Cooperative Bank

Over 200 employees risk losing their jobs

Bharti Axa Life, Accel infuse over Rs 111 cr as equity in Shivalik SFB

The SFB, an urban coop bank earlier, has a large presence in UP and MP; It has over 560,000 unique customers and runs 46 branches and 21 exclusive Business Correspondent Branches across northern India

RBI cancels the licence of Pune-based Seva Vikas Co-operative Bank

Seva Vikas Co-operative Bank lacked adequate capital and earning prospects.

Rajasthan govt approves financial assistance of Rs 100 crore for MSMEs

This scheme was announced in the state Budget 2022-23 to promote micro, small, and medium enterprises (MSMEs), and give loans on easy terms for small businesses and investors

RBI asks urban cooperative banks to appoint compliance chiefs by April 2023

RBI said this directive should be placed in the immediate next meeting of the Board of Directors for information

RBI introduces compliance function for UCBs in Tier-3 and 4 categories

The compliance function would ensure strict observance of all statutory and regulatory requirements. UCBs with deposits of more than Rs 1,000 crore fall under Tier-3 & 4 categories

RBI cancels Rupee Co-operative's licence; lender to cease business Sep 22

More than 99% of depositors of Pune-based lender to receive the full amount, says regulator

UCB digital push: Umbrella body NCFDC to be operational by early 2023

Customers of UCBs, including those with a single branch, will be able to access their bank accounts across two million customer touchpoints

RBI should come up with on-tap licences for UCBs, says Satish Marathe

The revised guidelines on UCB proposed a four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCB

RBI hikes capital adequacy ratio for urban cooperative banks to 12%

Rule applies to banks with deposits above Rs 100 crore; glide path till March 2026, to meet revised CAR norm in phases for UCBs that do not meet it currently