The scene of urban cooperative banks in the country is a mixed lot with some of them capable of taking on corporate banks while others struggling to be in the business. While cooperative banks like Saraswat and Cosmos with turn overs in the range of Rs 20,000-30,000 crore are everybody’s envy, many of UCBs are hot-bed of mismanagement and bad business practices.
And while those which are successful could be counted on fingers the list of those in sorry mess runs into hundreds.They are simply not able to make any profitable business.
Worried about this, the union finance ministry has desired Nabard to pitch in with enough financial help to enable these small banks to survive the present mess. That is to say, these banks would have basic infrastructure for core banking solutions.
Sources say, Nabard would provide these banks with needed funds under its Financial Inclusion Technology Fund.
There are a tad more than fifteen hundred urban cooperative banks in the country. A couple hundreds of them that are in deplorable conditions need urgent relief.
Sources say, the decision of the finance ministry would allow the non-profit making urban cooperative banks to have the required core banking solutions so they could ease their dependence on private commercial banks.
Nafcub, the apex cooperative federation of urban cooperative banks however, maintains that their demand for the provision of core banking solution to UCBs in the past had not been accepted.