Urban Cooperative Banks’ advance grow by 22%:H K Patil

While the whole world is complaining against Urban Cooperative banks style of functioning ,NAFCUB Chairman H K Patil has words of encouragement for them and compares them better than commercial bank in terms of financial inclusion.
Talking on the eve of Federation’s 35^th Annual General Meeting in New Delhi Mr Patil said that in the year 2010-2011 the deposits of urban cooperative banks increased at the rate of 14.8% while the advances grew at 22.4%.
These figures compare well with the corresponding figures of commercial banks at 15.4% and 20.1% respectively.He said that CRAR of 91% of the Urban Cooperative Banks is more than 9%, making the sector well capitalized by and large.
Mr Patil observed that NAFCUB’ s interactions with the Reserve

RBI releases Report of Expert Committee on Licensing of New Urban Co-operative Banks (UCBs)

The Reserve Bank of India today placed on its website the Report of Expert Committee on Licensing of New Urban Co-operative Banks (Chairman:Shri Y.H. Malegam). Suggestions and comments on the Report may please be forwarded by October 31, 2011 to the Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India, Central Office, Garment House, First Floor, Dr. Annie Besant Road, Worli, Mumbai – 400 018 (Fax No. 022-24974030) or emailed .
The main recommendations of the Expert Committee are:

• UCBs play a useful role and there is need for a greater presence of UCBs in unbanked districts and in centers
  

Co-op banks to have Rs 50 lakh fixed capital

Deccan Herald Says:

Mumbai, Sep 12, DHNS:

The Reserve Bank of India panel, on Monday, suggested the need for a greater presence of Urban Cooperative Banks (UCBs) in unbanked districts and in centers having population of less than 5 lakh.

An expert committee on Licensing of New Urban Co-operative Banks emphasised the need to encourage new entrants to open banks and branches in States and Districts which are unbanked or inadequately banked. Prescribing entry point capital for new UCBs, the Report said UCBs operating in only one state should have a minimum capital of Rs 50 lakh.  At the same

Panel suggests support system for urban co-operative banks

The Hindu Businessline says:

Mumbai, Sept. 12: 

A Reserve Bank of India expert committee has recommended the establishment of a separate national umbrella organisation to provide payments and settlement services and other liquidity support, which are normally provided by a central bank, to member urban co-operative banks.

Market experts say this move could be aimed at insulating the mainstream payments and settlement system from any fallout due to failure of urban co-operative banks (UCBs).

The RBI's committee on licensing of new UCBs has suggested that the umbrella organisation be preferably in the form of a multi-state UCB with membership restricted to and mandatory for urban co-operative banks other than scheduled ones.

“There is no need for an umbrella organisation for payments and settlement now as UCBs are becoming robust when it comes to

More urban cooperative banks likely to come up

Reserve Bank of India has finally received the recommendations of the Malegam Committee regarding new licenses to be offered to the urban cooperative banks (UCBs).
The recommendations offered by the committee come as a light of hope for cooperative credit societies of Gujarat which may now get a chance to upgrade themselves to cooperative bank stature. It is expected by analysts that as many as 40-50 of these societies from Gujarat may get cooperative bank licenses.
According to Ghanshyambhai Amin, chairman, Cooperative Credit Societies' Federation, "This will restore confidence in the cooperative banking sector. Of the 5200 credit cooperative societies in Gujarat, over 100 are capable to meet entry point norms set up by the panel for becoming a UCB. But at least 40-50 credit societies are likely to become UCBs after the enforcement of the recommendations."
"The deposits with credit societies are not insured, while those with UCBs are insured up to Rs 1 lakh. So more credit societies would try to get a status of UCB to improve their trust-worthiness and bring more customers," he said.
Apart from Gujarat, states like Uttar Pradesh, Bihar and Uttaranchal are also in league for getting their credit societies attain UCB status.
"UP has only 70 UCBs, while Uttaranchal has five. Even Bihar has poor UCB penetration. The new norms would help increase number of UCBs in these states," said Subhash Gupta, chief executive, National Federation of Urban Cooperative Banks and Credit Societies Ltd (NAFCUB).

Courtesy / Source : www.rupeetimes.com

Reserve Bank Cancels the license of Tandur Mahila Co-operative Bank Ltd. Tandur - Andhra Pradesh

RBI Press Release says:

In view of the fact that the operations of the Tandur Mahila Co-operative Urban Bank Ltd., Tandur (Andhra Pradesh), were practically defunct with no scope for revival in the foreseeable future and all efforts to ensure regulatory compliance in consultations with the Government of Andhra Pradesh had failed and the depositors were being inconvenienced by continued uncertainty, the Reserve Bank of India delivered the order dated August 22, 2011 canceling its license to the bank after the close of business on August 30, 2011. The Registrar of Co-operative Societies, Andhra Pradesh State has also been requested to issue an order for winding up the bank and

‘Changing into a private bank is not a choice, but a compulsion', says Saraswat Co-op Bank chief

The transformation will help the bank overcome the constraints in raising capital under the co-operative framework and brace up for increased competition as the RBI has kick-started the process for issuing licences for new banks.

Mumbai, Sept. 4: 

 Converting into a private sector bank is not a choice but a compulsion for Saraswat Co-operative Bank, India's largest urban co-operative bank, according to its Chairman, Mr Eknath Keshav Thakur.

The transformation into a private sector bank is expected to help Saraswat Bank overcome the constraints in raising capital under the co-operative framework and brace up for increased competition as the RBI has kick-started the process for issuing licences for new banks in the private sector.

Though the bank is aiming to achieve business (deposits plus advances) levels of Rs 50,000 crore by end-March 2016 and Rs 1 lakh crore by end-March 2021 from the current level of around Rs 29,000 crore, future growth will be hamstrung by

ഗ്രാമീണമേഖലയെ പാടേ തഴഞ്ഞ് റിസര്‍വ് ബാങ്ക് സര്‍വേ

കൊച്ചി: രാജ്യത്തെ പണപ്പെരുപ്പ അനുമാനം നിശ്ചയിക്കാനായി റിസര്‍വ് ബാങ്ക് ഓഫ് ഇന്ത്യ (ആര്‍ബിഐ) നടത്തുന്ന സര്‍വേയില്‍ ഗ്രാമീണമേഖലയെ പൂര്‍ണമായി തമസ്‌കരിച്ചു. രാജ്യത്തിന്റെ സാമ്പത്തിക വളര്‍ച്ചയെത്തന്നെ ദോഷകരമായി ബാധിക്കുന്നതലത്തിലേക്കാവും സര്‍വേയിലെ ഫലങ്ങള്‍ എന്ന ആശങ്ക ശക്തിപ്പെടുകയാണ്. രാജ്യത്തെ എഴുപത് ശതമാനത്തോളം ജനങ്ങള്‍ വസിക്കുന്ന ഗ്രാമീണമേഖലയെ പൂര്‍ണമായും അവഗണിച്ച് സര്‍വേ നടത്തുന്നതിന്റെ പ്രായോഗികത എന്തെന്ന് ആര്‍ബിഐ വ്യക്തമാക്കിയിട്ടുമില്ല.

രാജ്യത്തെ വീട്ടുചെലവുകളിലെ വര്‍ധന കണക്കാക്കാനായി ഓരോ മൂന്ന്മാസവും നടത്തുന്ന സര്‍വേയാണ് ഇത്. ജൂലായ്-സപ്തംബര്‍ പാദത്തിലെ സര്‍വേയ്ക്കാണ് ആര്‍ബിഐ ഇപ്പോള്‍ തുടക്കംകുറിച്ചിരിക്കുന്നത്.നഗരങ്ങളിലെ പണപ്പെരുപ്പത്തിന്റെ അളവുകോല്‍മാത്രം വച്ച് ഇന്ത്യയിലെ മുഴുവന്‍ പണപ്പെരുപ്പ അനുമാനം കണക്കാക്കുന്നത് ഗുരുതരമായ പ്രത്യാഘാതങ്ങള്‍ക്ക്

Mandi Urban Bank awaits RBI nod to restart operations

Shimla: With the financial health of Mandi Urban Cooperative Bank (MUCB) having improved, the government awaits a nod from Reserve Bank of India to permit the bank that was asked to suspend operations 7 years to start functioning again.
Papers laid in the Vidhan Sabha monsoon session that concluded on Wednesday revealed that RBI carried out a statutory inspection of MUCB under Banking Regulation Act for the year 2010-11 from 3rd to 9th August, 2011.
A proposal to RBI for relaxing or removing restrictions imposed on the

Madhavpura Mercantile Bank seeks merger in order to survive

Madhavpura Mercantile Co-operative Bank (MMCB), infamous for its association with stock broker Ketan Parekh, has got a six months’ breather from the banking regulator.
As a last-ditch attempt to keep the bank alive, a revival package is being worked out by merging MMCB with another bank, said an official of the Gujarat Urban Cooperative Banks Federation (GUCBF).
Many cooperative banks that had kept money with MMCB are willing to write off 50% of their exposure to help revive it.
MMCB went under in 2001 after lending money to Parekh who played in the stock market and lost. This had a cascading effect on at least 150 other banks that had kept deposits with MMCB.
“It is an uphill task to revive the bank. People like Parekh, who still owe at least Rs.1,200 crore to the bank, are yet to repay,” said Natwar Patel, director of MMCB.
The bank’s chief executive officer B.K.R. Maruti said they

Onam Festival Allowance to Deposit Collection Agents : GO Released

The Govt. of Kerala today released the order allowing the coop societies of the state to sanction Rs. 2500 to the deposit collection agents as Onam Festival Allowance.

For details, please download the order here