Should Co-operative Banks be exposed to Home Loans?

Political nexus is quoted to be the reason in allowing Coo-opertive banks to lend Housing Loans and for Developer Loans.  Further, the delinquency rates is expected to go high through such exposures.  Here is an article which suggests that Small Finance Banks, in partnership with Urban Co-operative Banks if permitted to extend Housing Loans would go a long way in institutionalizing and professionalizing such loans.