Search the Internet          Tips  Sites: Finance, Investment

More co-op banks bleed

BS Banking Bureau in Mumbai

The number of loss-making urban co-operative banks has increased to 285 in 2001-02 against 239 in the previous fiscal, according to the Reserve Bank of India's annual report.

These loss-making banks either fall under the classification of 'weak' banks or are new banks which posted losses on account of initial operating expenses.

At the end of March 2002, the number of UCBs stood at 2,090, inclusive of 89 salary earners' banks and 130 banks under liquidation.

Available information on 1,854 UCBs for 2001-02 indicates that 1,569 of them posted profits. In the previous year, of the 1,868 UCBs for which information was available, 1,629 logged profits.

Of the 52 scheduled UCBs spread across Andhra Pradesh, Goa, Gujarat, Karnataka, Maharashtra and Uttar Pradesh, 10 banks reported losses during 2001-02 compared with 11 banks during 2000-01.

The quantum of sticky assets of the UCBs showed a marked increase in FY 2002. The gross non-performing assets of 1,942 reporting UCBs stood at Rs 9,245 crore (Rs 92.45 billion) or 16.1 per cent of total advances compared with Rs 5,589 crore (Rs 55.89 billion) or 12.1 per cent of total advances for 1,866 reporting UCBs as at end-March 2000.

For the year ending March 2002, gross NPAs, based on data available for 1,342 UCBs, stood at Rs 11,472 crore (Rs 114.72 billion) or 21.9 per cent of total advances. The increase in gross NPAs was primarily due to certain large UCBs.

Total deposits and loans and advances of UCBs increased 15.1 per cent and 14.1 per cent respectively during 2001-02. At end-March 2002, the deposits and advances of scheduled UCBs accounted for 35.2 per cent and 35 per cent, respectively.

In absolute terms, as of March-end 2002, the 1,854 reporting UCBs had owned funds of Rs 13,796 crore (Rs 137.96 billion); deposits of Rs 93,069 crore (Rs 930.69 billion); and loans and advances of Rs 62,060 crore (Rs 620.60 billion).

As of March-end 2001, the 1,681 UCBs had owned funds of Rs 10,826 crore (Rs 108.26 billion); deposits of Rs 80,840 crore (Rs 808.40 billion); and loans & advances of Rs 54,389 crore (Rs 543.89 billion).

Powered by

ALSO READ:
RBI Annual Report 2001-02
More Money Headlines