Urban Cooperative Banks :At CrossRoads

Nagarajapillai, Ramu (2008): Urban Cooperative Banks :At CrossRoads. Published in: The Indian Banker , Vol. III, No. 1 (January 2008): pp. 14-22.

Abstract

Urban Cooperative Bank in India, with their long history of over 100 years, play an important role in financial inclusion. The mainstay of these banks was rooted in their captive clientele the forms of shareholders, and also in some cases specific community or location. This shielded them from the competition from large commercial banks. Recently, Indian banking industry has witnessed failure of a large number of Urban Cooperative banks. What are the reasons for these failures and what lays ahead for cooperative banks in India? This paper analyze the causes of concern and brings out some of the measures such as giving preferential treatment which would help urban cooperative banks to co-exist in the present competitive environment

• Item Type: MPRA Paper
• Language: English
• Keywords: Urban Cooperative Banks,Financial Inclusion,Indian Banking,Competiton
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

References 1. World Council of Credit Unions,(2006), Press release, quoted in urban credit, A Journal of NAFCUB, vol.28, p.37.

2. T.V. Gopalakrishnan (2004). Management of Non-performing advances: A study with reference to public sector banks, Northern Book Centre, New Delhi, p.3.

3. K.B.L. Mathur(2002), Public sector banks in India – should they be privatized? Economic and Political Weekly, Vol.XXXVII, No.23, June 2002, p.2246.

4. Ibid., p.4.

5. N. Ramu (2006), Role of urban cooperative banks in the changing business environment, Kisan World, Vol.32, No.12, p.57 . 6. S.B. Naik(2002), “Cooperative Banking: The Deep rooted Malaise”, The Hindu Business Line, 15.05.2002.

7. T.V. Lakshminarayan (2001), “Madhavpura Bank Scam”, Cooperative Banks under cloud”, The Tribune, Chandigarh, April 14, 2001.

8. DICGC,(2004),42nd Annual Report of the Board of Directors of Deposit Insurance and Credit Guarantee Corporation for the year ended 31.03.2004.

9. http://www.business.standard.com

10. P.V. Prabhu (1999). “Capital, Demutualisation and Governance – Indian Cooperative Credit and Banking Scenario”, International Cooperative Banking Association Journal, No.11, p.19-34. www.ica.coop/icba.

11. RBI (2005-2006), Report of Trends and Progress of Banking in India, p.120.

12. C. Rangarajan’s (1993), Inaugural address at the 16th Bank Economist’s Conference, Journal of the Indian Institute of Bankers, Mumbai,Vol.64, No.1, p.30.

13. R. Kannan (2004-2005), “Centenary of the cooperative movement in Tamil Nadu with special reference to the year 2004-2005, Tamil Nadu Cooperative Union, Chennai, pp.96-99.

14. John, D. Silva (2005), Cooperative Banker’s Diary, p.97. Mumbai 15. Ibid., p.109.

16. Ibid., p.179.

17. Coop. Banking Tabloid,(2004), A Voice of NAFCUB, New Delhi, Vol.13, No.40, p.3.

18. Usha Thorat (Oct., Dec.2005), Urban Cooperative Banks: Evolution of the banks current issues in corporate governance challenges in their regulation and supervision, Urban Credit, A Journal of NAFCUB, New Delhi, Vol.XXVIII, p.12.

19. N. Ramu (Jan.-March 2006), SWOT Analysis of urban cooperative banking sector in India, Cooperative Perspective, Vol.40, No.4, p.28.