gujarat urban co-operative banks' federation threats and opportunities before urban...
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Deposit Size-wise Distribution of UCBs in India as on March 31,TRANSCRIPT
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GUJARAT URBAN CO-OPERATIVE BANKS' FEDERATION
THREATS AND
OPPORTUNITIES BEFORE URBAN Co-OPERATIVE
BANKS jyotindra Mehta
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Existing Banking structure in India as on 31st March 2013
COMMERCIAL BANKS 26
PRIVATE SECTOR BANKS 20FOREIGN BANKS 43
REGIONAL RURAL BANKS 64FOREIGN BANKS 43
STATE Co-Op. BANKS 31
DIST. Co-OP. BANKS 371
URBAN Co-Op. BANKS 1606
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Deposit Size (` Crore)
No. of UCBs
No of banks(% to total)
Deposits (` Crore)
Deposits (% to total)
> 5000 4 0.2 36514 17.4 1000 < 5000 25 1.5 46340 22.1 500 < 1000 41 2.5 28889 13.7 250 < 500 90 5.5 29561 14.1 100 < 250 204 12.4 31518 15.0 50 < 100 242 14.7 17110 8.1 25 < 50 319 19.4 11289 5.4 10 < 25 421 25.6 7093 3.4 < 10 299 18.2 1635 0.8
Deposit Size-wise Distribution of UCBs in India as on March 31, 2011
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URBAN CO-OPERATIVE BANKS in GUJARAT
PRE MADHAVPURA
2001
POST MADHAVPURA
2006 31 MAR 2014
NO. OF BANKS 350 295 228
TOTAL DEPOSITS ` 17791 ` 14353 ` 31448.83
TOTAL DEPOSIT ACCOUNTS 11634435 8966502 9241597
DEPOSITS (` Crores)
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URBAN CO-OPERATIVE BANKS in GUJARAT
PRE MADHAVPURA
POST MADHAVPURA 31 MAR 2014
NO. OF BANKS 350 295 228
TOTAL ADVANCES ` 11864 ` 8420 ` 18548.22
TOTAL ADVANCES ACCOUNTS 1091005 626483 610115
ADVANCES (` Crores)
As observed by Malegam Committee, 90% of Advance amounts in UCBs are coMPRISed OF
small borrowers upto advance of ` 5 lakhs
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URBAN CO-OPERATIVE BANKS in GUJARAT
MEMBERS
AS ON 31 MAR 2014NO. OF BANKS 228TOTAL NO.OF MEMBERS IN GUJARAT 3148145
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URBAN CO-OPERATIVE BANKS in GUJARAT
AGE WISE UCBs
Number of Years Number of Banks100 + 275 to 100 1251 to 75 5125 to 50 123Below 25 40
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URBAN CO-OPERATIVE BANKS in GUJARAT
PAID UP SHARE CAPITAL & RESERVES
AS ON 31 MAR 2014 ` CroresNO. OF BANKS 228(A) TOTAL PAID UP SHARE CAPITAL ` 879.46(B) TOTAL RESERVES ` 4418.75TOTAL (A+B) ` 5298.21
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BANKS – BRANCH NUMBER DETAILS- GUJARAT
DESCRIPTION NO. OF BANKS
UNIT BANK 99
MORE THAN 1 BR AND LESS THAN 6 BR 89
MORE THAN 5 BR AND LESS THAN 11 BR 24
MORE THAN 10 BR AND LESS THAN 16 BR 8
MORE THAN 15 BR AND LESS THAN 26 BR 3
MORE THAN 25 BR 5
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Threats and challenges before UCBs-1
* Declining Market Share. At present less than 3%
* Erosion of Public Confidence post Madhavpura Bank* Erosion of confidence of Regulator - RBI* Relevance of Co-operative Structure in current Economic environment - Global Economic meltdown.
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Threats and challenges before UCBs-2
* Technology up-gradation* Retaining of its customers* Attract young generation towards UCBs* Entry of small Banks like payment bank. RBI is planning to issue licences to small banks like payment bank. Such bank can accept deposits upto Rs.1.00 lakh only.* Professional Governance
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OPPORTUNITIES - 1
* UCBs have presence in all the areas i.e. starting from Metro to Semi urban areas* UCBs finance through SHG/Joint Liability Group is also bigger avenue for expanding its business* “Pradhan Mantri Jan Dhan Yojana”
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OPPORTUNITIES - 2* UCBs are very near to the heart of the middle class and easily approachable to the lower class* Management comes from local population* UCBs catering services in local language, gives feel of own people * Unit Banks situated in a particular area prove to be local economic power house for the area- i.e. Jambusar Bk
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OPPORTUNITIES - 3
* 8 lakh SMEs in Gujarat provide better bait for marketing of advances* Proven track record of Financial Inclusion* UCBs can understand local need and formulate policies accordingly
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OPPORTUNITIES - 4* Even smaller UCBs can meet with any challenge including adoption of new technology by taking services of CTS, NEFT, RTGS, ATM, Data sharing, etc., from other larger UCBs* Loyalty of clients is much more than peer Banks as they grow from small clients to large ones* Simplified procedures *UCBs provide cheaper services and low service charge structure attracts customers
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“Banking is necessary – Banks are not.”
-Bill Gates
The banks you see in present form today, will diminish like a dinosaur.
