Weak UCBs

Here is statistics on Urban and Multi-State Co-operative Banks in India.

1. There are 1,482 urban and 58 multi-state co-operative banks in the country with 8.60 crore depositors, having total savings of close to Rs 5 lakh crore.
2. Out of this, as many as 277 urban co-operative banks (close to a fifth of the total UCBs) have “weak” financial status.
3. The Finance Minister adds that
   1. the financial status of 277 urban cooperative banks is weak
   2. 105 cooperative banks are unable to meet the minimum regulatory capital requirement and 47 banks have net worth in negative
   3. As many as 328 UCBs have gross non-performing asset of more than 15%.
   4. The Covid-19 pandemic has hit most of them much harder than the commercial banks.

Here is an article which gives the details of the FM’s Speech on UCBs.