The goal of the National Urban Cooperative Finance and Development Corporation is double the bottomline of urban cooperative banks in the next years, according to its Chairman Jyotindra Mehta.
NUCFDC—an umbrella body launched for urban cooperative lenders by the Ministry of Cooperation earlier this year—aims to launch few products in the next few months which will provide compliance support, Mehta noted.
"We are planning to double the profit of urban cooperative banks in next five years and have few products to help with compliance," he said.
NUCFDC has laid out key strategies such as industry panels and trainings, which will be rolled out by March 2025.
The umbrella organisation is also working on providing technology support such as cyber security and vendor support. The discussions are in progress with core banking software providers, and NUCFDC will conduct its first roll out by August 2025.
Given weak cyber security among such banks, there is a need for higher information technology expenditure. NUCDFC aims to centralise all the IT hardware and software at the organization's Sahakar Cloud and will launch it by July 2025.
Several other key measures are also in the pipeline, such as raising the total Rs 300-crore prescribed by the Reserve Bank of India. So far, the corporation has raised Rs 118 crore and aims to raise the rest of the amount by Feb. 7.
A total of 197 banks are a part of the organisation and Mehta believes that it will take a long time to add all urban cooperative lenders, as there are around 1,500 such banks. He said that the key challenge has been to bring all these banks under one umbrella.
Mehta also said that NUCFDC aims to increase the pace of deposit growth in urban cooperative banks, which is currently at 4%.
The aim of this organisation is to ensure survival and sustainability of these banks and to ensure zero penalties by the RBI.
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