Advances by the urban cooperative banks (UCBs) in Gujarat have outperformed deposits throughout the financial year ended March 31, 2011. The advances grew by over 11 percent over previous year, while deposits rose by close in order to 4. 5 per cent on year-on-year basis.
As per the figures supplied by the Gujarat Urban Cooperative Banks Federation (GUCBF), the advances distributed by the state UCBs stood at Rs 12, 056 crore, upward 11. 7 per cent from Rs 10, 645 crore authorized in March 2010, while deposits rose by about four. 5 per cent from Rs 20, 443 crore within March 2010 to Rs 21, 404 crore in 03, 2011.
At a recently held annual general meeting associated with GUCBF, Jyotindra Mehta, the chairman of the federation knowledgeable that UCBs in Gujarat advanced money to about 563, 000 people throughout the financial year 2010-11.
Speaking about the future growth associated with urban cooperative banking system in India, Mehta said, "We tend to be proud that Reserve Bank of India (RBI), under it's Malegam panel, has opened the doors for new cooperative banking institutions in India. " The federation has decided to celebrate the entire year, 2011-12 as the International Cooperation Year, in line using the United Nation's decision to celebrate the year to recognise the significance of the small cooperative banks and credit unions.
"Some time when the global economy was struggling through a slowdown and several large banks and financial institutions collapsed. At that time credit unions and cooperative banks in Europe and also the US stood firm against all odds. It is a pride for all of us that UN has decided to celebrate the year of 2011-12 since the year of International Cooperation Year, " added Mehta in the 36th AGM held in Ahmedabad recently.
Currently, the condition has 249 UCBs operational, while experts anticipate about 40-50 new UCBs to obtain operational after the newly issued norms recommended by the Malegam Committee in due span of time.
The committee, which was appointed by the RBI on licensing of new UCBs underneath the chairmanship of Y H Malegam recommended that, 'the current well managed cooperative credit societies, which would meet monetary criteria like profits, capital adequacy and NPAs' proportion ought to be given priority for granting licenses as UCBs mainly within the unbanked or inadequately banked districts of the country. inch.
Source : Business-Standard