The total NPA of urban cooperative banks in Telangana is Rs 162 crore, which is only 1.89%, and is lower than the average of the banking sector in the country. Urban Cooperative Banks (UCBs) in Telangana are playing a vital role in providing credit to Micro, Small and Medium Enterprises (MSMEs) in the state. With local and member-centric banking, these banks have built a strong foundation of savings, credit and cooperation.
Currently, there are 48 urban cooperative banks operating in Telangana with a total business of over Rs 20,000 crore. These banks are serving 1 crore customers through a capital of around Rs 500 crore, 400 branches and over 400 ATMs.
Leading banks like Gayatri Bank, Vardhman Mahila Bank, Pochampally Bank, Sudha Bank, Stambhadri Bank and Shree Gayatri Bank are performing remarkably in terms of profit and growth. Pochampally Bank in particular has won many awards for its steady growth and good management.
According to experts, although some failures and irregularities have cast a question mark over the entire cooperative banking sector, the performance of most banks in Telangana is satisfactory. Hence, there is a need to provide these banks with policy support in the form of capital infusion, government deposits, government business and participation in various schemes.