CRAR in Co-op Bank: RBI mum at Minister’s promise

Kerala Cooperation Minister Kadakampaly Surendran said RBI would consider Kerala’s request for relaxation of capital to risk -weighted assets ratio (CRAR) for cooperative banks in the state, reports Press Trust of India.

The Kerala govt wanted relaxation for the financial year 2016-17. RBI had directed cooperative banks to maintain a CRAR of nine per cent. Kerala’s cooperative banks were not able to achieve the aforesaid CRAR.

In a remarkable feat the target of 9 percent CRAR was achieved by all the central cooperative banks in the state of Rajasthan as reported in these columns.

The apex bank, Rajasthan State Co-operative Bank was able to manage 9.93% of CRAR. All these banks are now eligible for NABARD rating.

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