Gujarat Urban Co-op Banks Federation recommends member banks to utilise NPAsource.com's services

The Gujarat Urban Co-operative Banks Federation (GUCBF), the apex cooperative body for the 244 urban cooperative banks in the state, has recommended all its member banks to utilise the facilities offered by NPAsource.com so as to resolve all their non-performing assets related problems.

Resolution of non-performing assets (NPAs) for all banks in India is very vital to their financial health, especially when the global as well as Indian economies are facing a slowdown. According to GUCBF data, as of March 31, 2011 there were 244 urban cooperative banks (UCBs) in Gujarat with total deposits of Rs. 21,668 crore and advances of Rs. 12,057 crore. These 244 UCBs have 862 branches across the state with over 89 lakh depositors and 28 lakh plus members.

GUCBF CEO's recommendation letter sent to all member banks says that the banking fraternity is beset with the travails of managing NPAs. This issue has been discussed at various platforms on many occasions but no concrete steps have been taken so far. A system that identifies bad accounts in advance and curtails deterioration in asset quality would be of vital importance to the banking industry as well as the corporate sector in India.

Therefore, he has urged all the GUCBF members to look at the NPAsource.com platform and make optimal use of it to effectively manage their bad loans. "NPAsource.com is a platform that provides a global network to banks and helps potential and genuine investors who want to invest in particular industries and companies but are unable to get updated information on them. This platform also restricts the syndicate of local auctioneers who generally buy NPA properties at a much lower price than their actual market realisation values," continues GUCBF CEO.

Commenting on the backing that NPAsource.com has got from GUCBF, Mr. Devendra Jain, Chairman & MD of Atishya Group (owner of the portal) said, "Our aim to be a change agent in the NPAs space as their resolutions improve the financial health of the entire banking sector and this in turn leads stronger economic growth for the entire country. After Maharashtra, Gujarat has the second largest number of cooperative banks in India. With 89 lakh plus depositors having over 21,668 crore of deposits spread across 244 UCBs, the financial health of these coop banks is vital to the economic growth of Gujarat. We are confident that our portal will assist in resolving some part of the few thousand crore worth of NPAs in the state."

Source : Equity Bulls

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