Funds and Investment Management of Virudhunagar Cooperative Urban Bank LTD

Abstract

There are many Primary Urban Cooperative Banks (UCBs), forming a heterogeneous size and spread group. Many of these banks are very small in size and reach. They compete with more significant participants in the same banking space. Over the years, many urban cooperative banks became weak and non-viable, thus posing a systemic risk to the UCB sector. They lack avenues for raising capital funds since they cannot go for public issues of shares, nor can they issue shares to members at a premium. At the same time, there are many UCBs in the sector which is financially solid and viable. This sector in the recent past has witnessed significant developments that have far-reaching implications for the banking sector that is savings banking interest rate has been deregulated. It shows that the RBI gives a lot of freedom and autonomy for the smooth functioning of the UCBs. Hence, the virudhunagar UCB, by using independence and liberty, should bring in qualitative improvement in the method of functioning and altitudinal transformation and increase in per-employee Productivity, which will result in achieving the objectives of inclusive growth and sustainable development.This study, therefore, analyses Funds and Investment Management of Virudhunagar Urban Bank.