Urban Cooperative Banks (UCBs) in India witnessed a notable improvement in asset quality in FY 2024, with Gross Non-Performing Assets (NPAs) declining to Rs 25,410.70 crore from Rs 29,204.14 crore in the previous year.
The Gross NPA ratio also eased to 7.33% in FY 2024 from 8.84% in FY 2023, signaling better credit discipline and recovery efforts across the sector. Scheduled UCBs showed a significant reduction in gross NPAs—from Rs 10,016 crore to Rs 8,422 crore—while non-scheduled UCBs also brought down their NPAs from Rs 19,188 crore to Rs 16,988 crore.
Net NPAs for all UCBs fell sharply to Rs 3,913 crore (1.20%), compared to Rs 6,684 crore (2.17%) last year. Provisioning coverage improved to 84.60% from 77.11%, indicating enhanced financial resilience.
Notably, non-scheduled UCBs showed robust provisioning coverage of 88.50%, reflecting their cautious stance amid recovery efforts. These figures underscore strengthening fundamentals in the cooperative banking sector.
