Mention UCBs in corporate circles or even public sector commercial banking and chances are that you will evoke a smirk of dismissal. There are over 1,650 UCBs with close to 7,000 branches in the country. Yet they form a tiny part of the banking system accounting for less than 3% of the total banking assets and deposits and less than 3.5% of total advances. They also follow the 80-20 rule to the T. The top 20% of UCBs account for almost exactly 80% of its deposits.
Specific Challenges that UCBs Face
[This article has been reproduced with permission from the Indian School of Business, India]
Thank you Sir for the very good article. I would be very happy know the reasions for the failure / liquidation of large number of Cooperative banks in India especially in Gujarat and Maharashtra.
on Feb 13, 2013