Issuing a strong call for reforms, Pankaj Bansal, Additional Secretary, Union Ministry of Cooperation, urged Urban Cooperative Banks (UCBs) to modernize their operations, adopt the latest technology, and strengthen professional management, warning that institutions resisting change could meet the same fate as Nokia.
Addressing the International Cooperative Day celebrations at the Constitution Club on Saturday, Bansal said the sector has emerged from a difficult phase. “Before 2021, UCBs witnessed a prolonged decline. With the formation of the Ministry of Cooperation and subsequent reforms, most of the sector’s longstanding issues have been addressed,” he said.
He noted that the draft framework for issuing new banking licences has been finalized, adding that UCBs must now prepare themselves to seize future opportunities.
Expressing concern over the sector’s shrinking market share, Bansal said Urban Cooperative Banks now account for only about 3 percent of the country’s banking sector.
“We know this reality, but we often choose to ignore it. Stability has returned and the decline has been arrested, but survival is not enough, we must pursue growth,” he remarked.
Urging banks to recruit qualified professionals, ensure merit-based hiring, and embrace digital transformation, Bansal said, “We have to change with changing times. We must adopt the latest technology. If we fail to adapt, we will become like Nokia.”
He added that UCBs must work collectively to transform themselves into competitive, future-ready financial institutions.
