**Executive Summary**
This report outlines the governance and financial status of cooperative institutions in Odisha as of March 2026. It highlights a decline in Gross Non-Performing Asset (NPA) ratios for both the State and District Central Cooperative Banks (DCCBs) as of March 31, 2025, alongside significant state recapitalization efforts. The document details federal and state measures aimed at improving financial stability, technological integration, and fraud prevention within the sector.
**Key Points / Main Content**
**Institutional Status and Oversight**
* Odisha currently operates 9 Urban Cooperative Banks (UCBs), 18 Rural Cooperative Banks (1 State Bank, 17 District Banks), and 4,287 Primary Agricultural Credit Societies (PACS).
* The financial health of these banks is regularly reviewed by the State Government, RBI, and NABARD, with NABARD conducting statutory inspections.
* While no cooperative banks are under liquidation, 725 cooperative societies are undergoing liquidation with outstanding dues of ₹11.08 crore.
**Financial Performance and NPA Metrics**
* The Gross NPA ratio of the Odisha State Cooperative Bank (OSCB) improved from 1.08% in March 2024 to 0.87% in March 2025.
* The cumulative Gross NPA for the 17 DCCBs declined from 7.33% to 7.18% during the same period.
* As of March 31, 2025, seven DCCBs maintain NPAs below 5%, eight range between 5% and 10%, and two are between 10% and 15%.
**Strengthening and Governance Initiatives**
* Regulatory changes now allow cooperative banks to open new branches, provide doorstep banking, and operate under eased lending norms.
* Governance is being bolstered through the Integrated Ombudsman Scheme, AePS onboarding, and recognition under the CGTMSE as Member Lending Institutions.
* Technological support is provided via the "Sahakar Sarathi" initiative and fraud prevention is targeted through the I4C and NCRP portals.
**State Recapitalization Support**
* The Government of Odisha has provided consistent share capital assistance to DCCBs over the last three years:
* **2022-23:** ₹102.00 crore
* **2023-24:** ₹73.00 crore
* **2024-25:** ₹28.02 crore
**Impact Analysis**
**Cooperative Banks (OSCB and DCCBs)**
**Impact**
These institutions are experiencing improved financial stability due to state capital infusions and expanded operational rights, such as branch expansion and doorstep banking.
**Action Required**
Banks must continue to lower NPA levels and must onboard onto the I4C and NCRP portals to improve governance and prevent fraud.
**Regulatory Bodies (RBI and NABARD)**
**Impact**
There is a continued requirement for rigorous oversight and statutory inspections to monitor NPA levels and financial irregularities.
**Action Required**
Conduct periodic performance reviews in High-Level Committee meetings and ensure compliance with the Integrated Ombudsman Scheme.
**Cooperative Societies under Liquidation**
**Impact**
725 societies are currently being dissolved and are subject to annual audits to resolve ₹11.08 crore in bank dues.
**Action Required**
The Directorate of Cooperative Audit must conduct annual audits to facilitate the liquidation process and recovery of dues.
Key Entities Referenced
Odisha: The primary state where the cooperative banking governance, financial assessments, and recapitalization measures are implemented.
Odisha State Cooperative Bank (OSCB): The apex cooperative bank in the state subject to regular statutory inspections and performance monitoring regarding NPA levels.
District Central Cooperative Banks (DCCBs): A group of 17 rural cooperative banks in Odisha undergoing financial review, NPA assessment, and receiving state-led recapitalization support.
NABARD: The regulatory body responsible for conducting statutory inspections and reviewing the financial position of cooperative banks in Odisha.
Ministry of Cooperation: The central government ministry overseeing the governance, regulatory measures, and strengthening of the cooperative banking system.
Ministry of Cooperation
Governance of cooperative institutions in Odisha
Posted On: 18 MAR 2026 5:37PM by PIB Delhi
As per information received from RBI and NABARD, the present status of cooperative institutions in
Odisha is 9 Urban Cooperative Banks (UCBs), 18 Rural Cooperative Banks (1 State Cooperative Bank
and 17 District Central Cooperative Banks), and 4,287 Primary Agricultural Credit Societies (PACS).
The financial position of Cooperative Banks is reviewed regularly by State Government, RBI and
NABARD. NABARD conducts statutory inspections of Odisha State Cooperative Bank (OSCB) and
DCCBs.
None of the Cooperative Banks in the State are under liquidation. About 725 cooperative societies are
under liquidation with dues of ₹11.08 crore to banks, and their annual audit is conducted by the
Directorate of Cooperative Audit, Odisha.
Assessment of NPA levels and financial irregularities is undertaken during statutory inspections of the
Odisha State Cooperative Bank (OSCB) and all District Central Cooperative Banks (DCCBs) and their
performance is also reviewed periodically in High Level Committee meetings. The Gross NPA ratio of
OSCB declined from 1.08% as on 31.03.2024 to 0.87% as on 31.03.2025, while the cumulative Gross
NPA of all 17 DCCBs declined from 7.33% to 7.18% during the same period.
As on 31.03.2025, 7 DCCBs have Gross NPAs up to 5%, 8 DCCBs have Gross NPAs between 5% and
10%, and 2 DCCBs have Gross NPAs between 10% and 15%.
The Government of India and RBI have taken several measures to strengthen cooperative banks and
improve governance and financial stability across the country including the State of Odisha. These include
allowing cooperative banks to open new branches, provide doorstep banking services, and easing
regulatory norms to expand lending operations. Measures such as enhancement of loan limits, one-time
settlement of loans, inclusion under the Integrated Ombudsman Scheme, onboarding on AePS, and
recognition as Member Lending Institutions under CGTMSE have also been introduced. Further,
initiatives such as NUCFDC as an Umbrella Organization, Sahakar Sarathi for technological support, and
onboarding of cooperative banks on I4C and NCRP portals aim to improve governance, prevent fraud and
strengthen the cooperative banking system.
Further, the Government of Odisha has been providing support for recapitalisation of Cooperative Banks
by contributing to the share capital of all District Central Cooperative Banks (DCCBs) in the State. The
share capital assistance released to DCCBs during the last three years is as under:
Year Assistance
2022-23 ₹ 102.00 crore2023-24 ₹ 73.00 crore
2024-25 ₹ 28.02 crore
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written
reply in Rajya Sabha.
******
AK/AP
(Release ID: 2241938) Visitor Counter : 67
Read this release in: Urdu , ही