‘undercapitalised’

According to an observation made by a recently appointed working group by Reserve Bank to investigate about the financial health of Urban Cooperative Banks (UCBs), 15% of the banks (30 banks out of 217 banks taken as the sample) are short of the prescribed regulatory capital. Besides, the number of UCBs banks under the Grade IV category, which includes banks with capital adequacy of less than 50% of the prescribed limit and NPAs of more than 15% have also increased over the years.

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Source:- IIPM Editorial

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