RBI”s latest report on the banking sector says “the consolidated balance sheet of urban co-operative banks (UCBs) moderated in 2017-18 on account of slower deposit growth. While the overall profitability of these banks moderated, their asset quality improved”, reports Business Standard.
RBI report also says that the Non-Performing Assets (NPAs) are stabilizing but at a high level. The eligible UCBs are now allowed to transit to small finance banks (SFBs), which would enable them to carry out a wider range of activities and also have a pan-India presence,”
As per the report, the performance of state co-operative banks in terms of NPA ratios and profitability continued to improve whereas the performance of district central co-operative banks (DCCBs) waned.