RBI's rules are hurting urban cooperative banks, say experts

According to experts, a dual regulation by the state and RBI is what's hurting the sector, as it leads to undue political intervention

On the face of it, it looks like the urban cooperative banks (UCBs) are in the pink of health. According to the Reserve Bank of India (RBI) data, for 2017-18, Punjab and Maharashtra Co-operative (PMC) Bank — which now faces restrictions from the central bank — posted a net profit of about ~101 crore, while its capital adequacy ratio was sound at 12.23 per cent. The bank’s deposit base stood at whopping ~9,938 crore at the end of FY18. 

According to experts, beyond the balance sheets, it is governance which is plaguing UCBs in India. According to experts, a dual regulation