The Reserve Bank of India has released the 6th volume of the annual publication titled ‘Primary (Urban) Co-operative Banks’ Outlook 2018-19’. The publication covers the financial accounts of Scheduled and Non-Scheduled Primary (Urban) Co-operative Banks for the financial year 2018-19.
The report underlines that UCBs’ combined assets nearly halved to 10.6 per cent of the assets of commercial banks in FY19 from 19.4 per cent in FY05. However, the combined balance sheet of urban and rural cooperative banks saw robust expansion in FY19.
Despite their large numbers, urban cooperatives account for just 3.6 per cent of the total assets of commercial banks as most of them are single branch entities, with limited avenues to raise capital.
Deposits, which accounts for 89.5 per cent of their resource base revived in FY19 after a deceleration in FY18. Nonetheless, their deposit growth remains well-below the average of 13.9 per cent achieved between FY08 and FY17, the RBI in its annual report on the trends and progress of banks in FY19, report media outlets
During FY17 and FY18, the incremental credit-to-deposit ratio of urban cooperatives rose above those of commercial banks, owing to the impact of high deposit growth on account of demonetisation and lower credit growth of bank in the next year. This upturn was, however, reversed in FY19 with a pick-up in credit growth of banks. On the financial profitability, the report said urban cooperatives saw a decline in net profit after taxes in FY19.
The publication provides aggregate information on major items of balance sheet, profit and loss account, non-performing assets, financial ratios, state-wise distribution of offices and details of priority sector advances.
In addition to that, the publication provides bank-wise information of Scheduled Primary (Urban) Co-operative Banks on select financial ratios such as Capital Adequacy, Profitability, and Employee Productivity etc.
The report says there are 1544 of Urban Cooperative Banks in which Scheduled UCBs are 54, Multi-State Scheduled UCBs are 34, Single-State Scheduled UCBs are 20. The number of Non-Scheduled UCBs have been pegged at 1,490, number of Single-State Non-Scheduled UCBs are 1,466 and Multi-State Non-Scheduled UCBs are 24.