In response to an RTI query by The Indian Express, RBI’s response has established that the cases of bad loans are less in urban cooperative banks compared to their commercial cousins.
The apex bank said that 58 UCBs out of 447 in 2014-15 and 48 of 280 UCBs in 15-16 reported write-offs of bad loans. Every bank undertakes write-off exercise once in a while to clean up its balance sheets.
The cumulative write-offs for both years for urban cooperative banks was Rs 173 crore, of which Rs 113 crore was for 2014-15 and Rs 60.53 crore was written off during financial year 2015-16.
As per the data, almost 10 per cent of the UCBs had reported reduction of their non-performing assets (NPAs) from 2014-15 to 2015-16, RTI query reveals.