In the Nabard’s publication on Key Statistics of Cooperative Banks (Short Term Co-operative Credit Structure), its Chairman Shaji KV said, “During the FY 2021-22, the consolidated operating profits of State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) increased by 50.5% and 24.8%, respectively and their asset quality has also shown an improvement”.
“Besides, the growth in their loan portfolio was observed to be greater than the average of scheduled commercial banks. The share of cooperatives in the Ground Level Credit (GLC) flow to agriculture had declined steadily from 62% in the FY 1992-93 to 11.3% in the FY 2019-20”, he added.
There are 34 STCBs in India having a network of 2,089 branches. The deposits of these banks have been increased from Rs 2,23,057 crore (FY 2020-21) to Rs 2,40,953 crore as on 31st March 2022 whereas borrowings rose from Rs 1,07,207 crore to Rs 1,23,785 crore in the 2021-22 FY.
The number of State Cooperative banks which reported loss as on 31st March 2022 were three and the amount of loss reported by banks is Rs 50 crore in the 2021-22 FY.
Of the 34 StCBs, 24 are listed in the Second Schedule of RBI, as “Scheduled State Cooperative Banks”. In all, the cooperatives with over 1 lakh outlets form the largest rural credit network in the country. Daman & Diu StCB is yet to be licensed, the report reads.
The share of agri loans in the total loan portfolio of StCBs increased from 43% as on 31 March 2021 to 46% as on 31 March 2022. The consolidated balance sheet size of StCBs grew by 10.6% during FY 2021-22 and stood at Rs 4.17 lakh crore as on 31 March 2022.
Coming to District Central Cooperative Banks, there are 351 DCCBs in India having a network of 13,670 branches. The deposits of these banks have been increased from Rs 3,81,825 crore (FY 2020-21) to Rs 4,12,573 crore as on 31st March 2022 whereas borrowings rose from Rs 1,08,077 crore to Rs 1,28,524 crore in the 2021-22 FY.
The number of DCCBs which reported loss as on 31st March 2022 were 49 and the amount of loss reported by banks is Rs 996 crore in the 2021-22 FY.
The number of loss-making DCCBs decreased in the two states West Bengal and Punjab during the FY 2021-22. The number of loss-making DCCBs increased in five states of Madhya Pradesh, Uttar Pradesh, Bihar, Gujarat, and Maharashtra. While Gujarat had no loss making DCCBs in the FY 2020-21, all DCCBs except Kachchh DCCB posted profit in the FY 2021-22.
Pursuant to the amendment to the Banking Regulation Act, 2020 DCCBs are permitted to open new places of business/install ATMs or shift the location of such offices only after obtaining prior approval of the Reserve Bank of India (RBI), its further added, which was released on Friday last week.