The Gujarat urban cooperative banks federation has advised its member banks to concern themselves with their NPA related problems.
NPA is fast acquiring a serious proportion threatening the financial stability of banks at this juncture when the country’s economy is passing through a bumpy period.
There are nearly two hundred fifty urban cooperative banks with about a thousand branches in Gujarat. They have only a little less than a crore of depositors and their profits count more than twenty thousand crore.
GUCBF has been urging its members to be alive to the danger arising out of bad loans.
Observers say if the NPA related problems were not tackled on time, the cooperative banks that played an important role in the economic development of Gujarat would inevitably come to grief.