The Reserve Bank of India released the Report on Trend and Progress of Banking in India 2019-20, in which it says while co-op banks did better, UCBs performed poorly.
The broad theme of this year’s report is the impact of COVID-19 on banking and non-banking sectors, and the way forward. The highlights of the Report says:
“The balance sheet growth of Urban Co-operative Banks (UCBs) moderated in 2019-20 on lower deposit accretion and muted expansion in credit; while their asset quality deteriorated, increased provisioning resulted in net losses”, says the report
The performance of state co-operative banks improved, both in terms of profitability and asset quality.
The Report also offers some perspectives on the evolving outlook for India’s financial sector.