In a reply to an RTI, the Reserve Bank of India (RBI) has revealed what was being told in the cooperative sector for long-that the NPA of Scheduled Commercial Banks are several times higher than that of urban cooperative banks, tells a report in TOI.
The outstanding gross Non-Performing Assets (NPA) of commercial banks are at a whopping Rs8.99 lakh crore till December 31, 2017 while it is Rs 21,297 crore in the case of UCBs.
Earlier, lauding the UCB sector Sahakar Bharat President Jyotindra Mehta said while NPAs of commercial banks are more than 11%, it is just 2.4 percent for UCBs.
“In case of financial problems in the UCB sector we are left at the mercy of RBI. There are indeed lesser cases of causalities owing to lower NPAs in the sector and we have requested the RBI in past to for having some kind of a revival mechanism for smaller banks, Mehta said.