In a bid to maintain existing clientele and garner fresh deposits, urban co-operative banks (UCBs) pay high rates. However, with the rise in non-performing assets due to inadequate appraisal systems and low credit offtake, UCBs have to look for avenues other than lending credit, according to Arun Kaul, managing director, PNB Gilts.
Further, urban co-operative banks are required to maintain their statutory liquidity ratio (SLR) equivalent of 25 per cent of their net demand and time liabilities in government securities of which 75 per cent would be classified as current investment and shall be marked to market for valuations, he added.
He was speaking at a workshop on
