NPAs of Urban Coop Banks more than double in Gujarat

....."We expect this to be a step in right direction for the UCBs in Gujarat. Management of NPAs is a major concern for banks and such facility would provide ample room to select investor, thereby yielding better value for the asset. This is a new concept and banks should adopt it," said Jyotindra Mehta, chairman, GUCBF. According to RBI guidelines, a credit account will be classified as NPA if it is out of order for more than 90 days. After the introduction of grading methodology, UCBs have been asked to keep their net NPAs below 10 per cent. Nationally, the gross NPAs of UCBs stood at 10.1 per cent in 2009-10, while it fell in 2010-11 to 8.5 per cent. The loan amounts have increased over the years and the profitability of UCBs too have improved. This resulted in increased provisioning for bad loans over the years.

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