Mumbai
RBI officials and executives of the urban co- operative banks in Maharashtra participated in a seminar on Supervisory Action Framework ( SAF) for UCBs organized in Mumbai recently by the Maharashtra Urban Coop Banksalt39 Fede
ration in consultation with the RBI. The RBI circular on SAF issued a month ago had created confusion among the cooperative banking sector.
Addressing the seminar, RBI, ED, S Karuppasamy said that coop banks should put special efforts to bring down their NPA ( Non- Performing Assets) level which stands at 10 %. In 2002- 2003 gross NPA of coop banking sector was 22% and now it is 8 to 9%. This is a good improvement.
On the CRAR ( Capital to Risk ( Weighted) Assets Ratio) of banks, 90% of the banks have more than 9% CRAR and that 10% banks needed monitoring.
Agreeing to number of banks coming down, from more than 2200 UCBs in the country in 2000, to 1600 plus now, if the 10% banks do not improve, the number may come down further, he said.
MP and Federation director, Anandrao Adsul said that, ‘He was surprised when two small Salary Earnersalt39 Banks have been penalized with Rs.
50.00 lakh to 2 cr for small violations.
” We look at the Regulator to discipline the UCBs slowly and properly and not by imposing heavy penalties.
Time for imposition of strictly quantified penalties and supervisory actions leading to micro regulation are over and it is time to provide more and more growth oriented regulations to help spread of UCBs,” he said.
