16-October-2024
Banking
 
Up to 65 weak Urban Cooperative Banks to exit turnaround regime by March
15-Oct-2024

Ahead of the new prompt corrective action (PCA) framework for Urban Cooperative Banks (UCBs), about 60-65 weak UCBs are expected to exit the current supervisory regime by March 2025 on improvement in performance. At present, a little over 500 weak banks are under the Supervisory Action Framework (SAF) for stressed banks, according to Ajay Bramhecha, director, National Federation Of Urban Cooperative Banks And Credit Societies Limited (NAFCUB). PCA will replace the existing SAF from the beginning of the new financial year – April 2025. During the financial year 2024 (FY24), 122 UCBs across the country came out of SAF. The number of UCBs stood at 1,470 at the end of March 2024. Bramhecha, also chairman, Maharashtra Urban Cooperative Banks Federation, told Business Standard, that in FY25, near about 60-65 UCBs are expected to come out of SAF.

News Source:- https://www.business-standard.com/industry/banking/60-65-weak-ucbs-to-exit-supervisory-regime-by-march-2025-on-performance-124101400850_1.html