Lok Sabha Question No. 1300 (UNSTARRED), answered on 2023-12-11
Subject: Co-operative Banks
Ministry: FINANCE
Asked by: E. T. Mohammed Basheer

## Government of India Ministry of Finance

## Department of Financial Services

## LOK SABHA

Unstarred Question No. 1300

Answered on Monday, December 11, 2023/Agrahayana 20, 1945 (Saka)

## CO-OPERATIVE BANKS

## 1300. SHRI E.T. MOHAMMED BASHEER:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of the huge overdues in co-operative banks?
- (b) if so, the details thereof?
- (c)   corrective steps/intervention taken by the Government in this regard?

## Answer

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

- (a) & (b): The Gross Non-Performing Assets (GNPAs) as a percentage of Gross Loans Outstanding of State Cooperative Banks (StCBs), District Cooperative Banks (DCCBs), Urban Cooperative Banks  (Scheduled  UCBs  and Non-Scheduled  UCBs)  and  Tamil  Nadu  Industrial  Co-operative Bank Ltd. (TAICO) are in Annexure.
- (c): Some of the policy initiatives taken for strengthening Cooperative banks are as under:
1. The Banking Regulation Act, 1949 has been amended to provide additional powers to RBI for more effective regulation of co-operative banks.
2. RBI issues regular instructions, circulars, guidelines and notifications to State Cooperative Banks (StCBs), District Cooperative Banks (DCCBs) and Urban Cooperative Banks (UCBs) under the  provisions of the Banking  Regulation Act, 1949 [As Applicable to Cooperative Societies (AACS)].
3. RBI issues guidelines for  StCBs  /DCCBs and UCBs on various matters related to capital adequacy, income recognition and provisioning norms, investments, maintenance of deposits, customer service, etc.
4. UCBs are being periodically inspected by RBI under provisions of the Banking Regulation Act,  1949  to  ensure  that  the  banks  are  complying  with  the  extant  guidelines/instructions/ norms.
5. StCBs/DCCBs are being periodically inspected by NABARD under provisions of the Banking Regulation Act, 1949 to ensure that the banks are complying with the extant guidelines/instructions/norms.
6. In  order  to  strengthen  the  StCBs  and  DCCBs,  NABARD  enters  into  Memorandum  of Understanding (MoU) with State Coop. Banks and State Governments for implementing statespecific Development Action Plans (DAP).
7. Quarterly meetings of the high-powered forum 'State Level Task Force (SLTF)' and 'High Level Committee (HLC)' are conducted periodically to review the performance under DAP.

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Gross Non-Performing Assets (GNPAs) as a percentage of Gross Loans Outstanding of State Cooperative Banks (StCBs), District Cooperative Banks (DCCBs), Urban Cooperative Banks (Scheduled UCBs and Non-Scheduled UCBs) and Tamil Nadu Industrial Co-operative Bank Ltd. (TAICO)

| Parameter                     | FY   | Type of Cooperative Banks   | Type of Cooperative Banks   | Type of Cooperative Banks   | Type of Cooperative Banks   |
|-------------------------------|------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
|                               | FY   | StCBs                       | DCCBs                       | UCBs                        | TAICO                       |
| A. GNPA (Amount in Rs. Cr)    | 2021 | 14,591                      | 34,283                      | 37,996                      | 49                          |
| A. GNPA (Amount in Rs. Cr)    | 2022 | 14,885                      | 35,776                      | 30,473                      | 52                          |
| B. GNPA (%)                   | 2021 | 6.8                         | 11.4                        | 12.1                        | 8.0                         |
| B. GNPA (%)                   | 2022 | 6.1                         | 10.7                        | 9.7                         | 8.9                         |
| C. Net NPA (Amount in Rs. Cr) | 2021 | 6,925                       | 13,681                      | 16,783                      | 19                          |
| C. Net NPA (Amount in Rs. Cr) | 2022 | 6,085                       | 13,529                      | 12,914                      | 18                          |
| D. NNPA (%)                   | 2021 | 3.3                         | 4.9                         | 5.8                         | 3.2                         |
| D. NNPA (%)                   | 2022 | 2.6                         | 4.4                         | 4.4                         | 3.4                         |
| E. PCR(%)                     | 2021 | 56.6                        | 66.2                        | 58.9                        | 62.1                        |
| E. PCR(%)                     | 2022 | 63.6                        | 70.7                        | 62.9                        | 64.2                        |

(Source: RBI Report on Trend and Progress of Banking in India, 2021-22 & NABARD)