(a) whether despite the fact that most of the cooperative banks facing financial crisis, the Government are still issuing approvals for opening new cooperative banks;
(b) if so, the reasons therefore;
(c) the State-wise number of cooperative banks and the total deposits of customers with these banks;
(d) the reasons for losses; and
(e) the specific steps taken by the Government to ensure that these banks retain the confidence of depositors?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a),(b),(c),(d) & (e): A Statement is laid on the Table of the House.
STATEMENT REFERRED IN REPLY TO PARTS (a), (b), (c), (d) AND (e) OF LOK SABHA STARRED QUESTION
No.395 FOR APRIL 19, 2002 TABLED BY SHRI SATYAVRAT . CHA TURVEDI REGARDING NEW COOPERA TNE
BANKS
(a) And (b) : Reserve Bank of India (RBI) has reported that out of the 2090 urban co-operative
banks, only 244 were reported to be making losses as on 3 I sl March 2001. RBI has further
reported that it is issuing new licenses for setting up of urban co-operative banks only on
highly selective basis.
(c ) : State-wise number of urban and Distri
(d) : As reported by RBI and National Bank for Agriculture and Rural Development (NABARD),
reasons for losses incurred by Co-operative Banks are, inter alia, deficiencies in management,
laxity in evolving sound policies and procedures for lending and post-sanction supervision,
lack of professionalism in management, inefficient funds management, low income and high level
of expenditure.
(e) : RBI and NABARD have issued guidelines to all co-operative banks to streamline their
intemaJ control mechanism such as internal audit/inspection, concurrent audit of sensitive
areas/large branches, periodical balancing of books,. custody of security forms/cheque books,
surpnse verification of cash and other valuables, rotation of staff etc.
state- wise number of urban and district central co- operative banks
incurred losses as on 31.3.01
SL.NO. NAME OF STATE NO. LOSS MAKING BANKSOF UCBS DCCBS
1 andhra pradesh 30 10
2 assam 5 1
3 bihar 6
4 chandigarh 3
5 gujraat 28 2
6 haryana 4 2
7 himachal pradesh 2
8 jammu & kashmir 2
9 karnataka 21 4
10 kerala 9 1
11 madya pradesh 19 19
12 maharashta 77 9
13 manipur 2
14 meghalaya 1
15 mizoram 1
16 nagaland 1
17 new delhi 3
18 orissa 3 7
19 punjab 1
20 rajasthan 1 7
21 tamilnadu 17 11
22 uttar pradesh 9 20
23 west bengal 4 1
total 244 99