In the wake of the PMC Bank scam, the RBI report reveals huge losses happening in urban co-op banks. However, the apex bank says amendments in the laws will help it regulate them more effectively.
NPAs of urban co-operative banks have shown a rise in the financial year 2020 to 10.8 per cent as against 7.3 per cent in the previous year. RBI says the quantum of gross NPAs in the 1,539 UCBs increased to Rs 33,010 crore at the end of the year from Rs 22,093 crore a year ago.
According to RBI’s report, the number of such lenders bracketed in the lowest “D Category” increased during the last fiscal.
As per the report, growth in deposits, that constitute 90 per cent of the total resource base of UCBs, decelerated in 2019-20.