Profit-making coop banks allowed to open branches

Profit-making coop banks allowed to open branches
Comment E-mail Print Share
First Published: Tue, Jun 17 2008. 05 06 PM IST
Updated: Tue, Jun 17 2008. 05 06 PM IST
PTI
New Delhi: Liberalising branch licensing norms for profit-making urban co-operative banks, RBI has permitted them to open branches and off-site ATMs as per their annual business plans.
These UCBs must have net profit in the previous financial year, besides net NPAs of less than 10% and minimum capital-to-risk-weighted assets ratio of 10%.
It must also have adhered to the requirements of maintaining minimum cash with RBI as well as investment in government and other approved securities in the preceding financial year.
The Banks would be able to expand their branch network and upgrade the existing infrastructure by preparing an annual business plan, subject to approval of the respective boards.
“UCBs, satisfying the norms may prepare an Annual Business Plan for opening of branches/extension counters, upgradation of extension counters into full-fledged branches, setting up of new off site Automated Teller Machines, in their existing area of operation, for the next 12 months, with the approval of their Board of Directors and submit the ABP,” the central banks said in a notification.
However, only the banks situated in states that have signed MoUs with the Reserve Bank and those registered under the Multi-State Cooperative Societies Act, 2002 will be benefited by the rationalisation of the norms.
The RBI, in its Annual Policy Statement of April 2008-09, had announced that well-managed and financially sound UCBs would be able to get approval for branch expansion, including off-site ATMs, based on annual business plans.
Comment E-mail Print Share
First Published: Tue, Jun 17 2008. 05 06 PM IST