摘要:Co-operative occupies an important position in the Indian financial system. Co-operatives were the first formal institutions to be conceived and developed to purvey credit to rural India. Urban co-operative banks are registered under Co-operatives Societies Act of the respective State Governments. Prior to 1966, UCBs were exclusively under the purview of State Governments. Urban co-operative banking sector essentially caters the credit needs of persons of small means. UCBs are purveyor of credit to small borrowers and weaker section of the society. The lending performance of UCBs is unsatisfactory and characterized by low profitability.