A STUDY ON LOAN PORTFOLIO MANAGEMENT OF URBAN COOPERATIVE BANKS IN TAMIL NADU

Cooperative Banking System has two broad systems i.e. urban and rural cooperatives, forms an integral part of the India's Financial System. Urban Cooperative Banks play an important role as financial intermediaries in catering to the credit requirements of both priority sector and weaker section of the communities. As on March 2015 there were 120 UCBs functioning all over Tamil Nadu and the majority is Non-Schedule UCBs. These banks are traditionally centered on communities, localities and work place groups, and they lend to agriculture and non-agriculture purpose and particularly to small farmers, small traders, business man, artisans, factory workers, salaried people and persons of small means. This paper highlights the per-stage and post-stage sanction of loan process of credit in Tamil Nadu Urban Cooperative Banks. Further, the paper makes an assessment of the extent to which Urban Cooperative Banks were following loan portfolio management and identifies the focus area of improvement in near future.