Cooperative Banks in Odisha Stable, NPAs Decline: Govt
New Delhi, March 19: Cooperative banking institutions in Odisha remain financially stable, with no banks under liquidation and a marginal decline in non-performing assets (NPAs), the government informed the Rajya Sabha.
In a written reply, Union Minister for Home and Cooperation Amit Shah said the state has 9 Urban Cooperative Banks, 18 Rural Cooperative Banks — including one State Cooperative Bank and 17 District Central Cooperative Banks (DCCBs) — and 4,287 Primary Agricultural Credit Societies (PACS).
According to data shared by the Reserve Bank of India (RBI) and NABARD, none of the cooperative banks in Odisha are under liquidation. However, around 725 cooperative societies are currently under liquidation, with outstanding dues of ₹11.08 crore to banks.
The minister said annual audits of these societies are conducted by the Directorate of Cooperative Audit, Odisha.
The asset quality of cooperative banks in the state has shown improvement. The Gross NPA ratio of the Odisha State Cooperative Bank (OSCB) declined from 1.08% as of March 2024 to 0.87% as of March 2025.
Similarly, the cumulative Gross NPA ratio of all 17 DCCBs reduced from 7.33% to 7.18% during the same period.
As of March 2025, seven DCCBs reported NPAs below 5%, eight were in the 5–10% range, and two had NPAs between 10% and 15%.
The financial position of cooperative banks is regularly reviewed by the state government, RBI, and NABARD. NABARD also conducts statutory inspections of the Odisha State Cooperative Bank and DCCBs.
The government said several measures have been implemented to improve governance and financial stability. These include allowing cooperative banks to expand branch networks, offer doorstep banking services, and enhance lending capacity.
Other reforms include higher loan limits, one-time settlement schemes, integration with the RBI’s Integrated Ombudsman Scheme, onboarding on Aadhaar-enabled payment systems (AePS), and inclusion under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The Odisha government has also extended financial support to strengthen cooperative banks by contributing to their share capital. Assistance to DCCBs stood at ₹102 crore in 2022–23, ₹73 crore in 2023–24, and ₹28.02 crore in 2024–25.
The government said ongoing regulatory reforms, technological integration, and capital support are aimed at improving governance, reducing financial risks, and strengthening the cooperative banking sector in the state.
