SRINAGAR: Financial disclosures tabled by the Cooperative Department reveal a mixed picture across cooperative banks in Jammu and Kashmir, with several institutions grappling with mounting non-performing assets (NPAs), accumulated losses and staff shortages, even as some urban banks report stable performance and profits.
Jammu and Kashmir State Cooperative Bank Ltd:
Established in 1917, the bank operates across Budgam, Srinagar and Ganderbal districts of JK and the UT of Ladakh through 40 branches and a head office, with 167 member societies holding shares. As of December 2025, total loan outstanding stood at Rs 54,746 lakh, while gross NPAs were reported at Rs 34,275.87 lakh. The bank has witnessed persistent losses in recent years, including Rs 2,058.61 lakh in 2024-25 and Rs 1,876.21 lakh up to December 2025.
A One Time Settlement (OTS) scheme introduced in October 2023 applies to accounts classified as NPAs up to March 31, 2018. During 2023–24 and 2024–25, Rs 30.82 lakh in interest was waived, with no principal written off. The statutory auditor flagged negative net worth and non-compliance with Section 11(1) of the Banking Regulation Act (AACS). Of 247 sanctioned posts, only 89 are filled, and promotions have remained deferred since 2019 due to the absence of a Board of Management.
Jammu and Kashmir SCARD:
Founded in 1962, the SCARD Bank operates across JK and Ladakh with 46 branches and a membership base of 99,956. Since inception, it has disbursed over Rs 117 crore in loans, including Rs 13.95 crore in farm, Rs 14.26 crore in non-farm, and Rs 8.79 crore in rural housing sectors. Gross NPAs stood at Rs 28.41 crore as of December 31, 2025. The bank’s statutory audit is complete up to 2022–23, and one loan case has been referred to the Crime Branch. Over the past two years, Rs 1.23 crore has been waived under OTS schemes for chronic defaulters. Out of 375 sanctioned posts, only 181 are filled, leaving significant vacancies. Promotions have been stalled since 2019 owing to financial constraints and the absence of a functioning board.
Anantnag Central Cooperative Bank Ltd:
Established in 1923, the bank covers Anantnag, Kulgam, Pulwama and Shopian districts through 34 branches and has 79 affiliated PACS societies along with government shareholding. Total advances stand at Rs 21,223.74 lakh, with gross NPAs of Rs 1,054.32 lakh. Sector-wise, agriculture accounts for Rs 287.66 lakh, horticulture Rs 4,987.35 lakh, MSME Rs 1,071.99 lakh, housing Rs 1,216.94 lakh, and other sectors Rs 14,159.84 lakh. The bank posted profits of Rs 144.01 lakh in 2023–24 and Rs 220.50 lakh in 2024–25. Audit observations cited non-compliance with certain provisions of the Banking Regulation Act and CRAR requirements. Of 340 approved posts, 216 are filled. Promotions are being granted as per rules, with no pending claims.
Baramulla Central Cooperative Bank Ltd:
Formed in 1920, the bank operates across Baramulla, Kupwara and Bandipora districts with 35 branches, 122 PACS affiliates and around 80,000 members. Total outstanding loans amount to Rs 15,683.95 lakh, while gross NPAs stand at Rs 8,755.23 lakh, translating to 55 percent. The bank has reported continuous losses over the past decade, with accumulated losses reaching Rs 17,932.90 lakh by December 2025. No loan waivers were reported in the last two years. Out of 371 sanctioned posts, only 154 are filled. Service rules adopted in 2019 govern recruitment and promotions, which are under process.
Jammu Central Cooperative Bank Ltd:
Established in 1914, the bank operates across all ten districts of Jammu province through 85 branches and five extension counters, with 1,43,339 shareholders. Total advances stood at Rs 320.22 crore, with gross NPAs of Rs 60.71 crore. The bank’s CRAR was reported negative at minus 9.81 as of March 2025, and net worth stood at minus Rs 41 crore. RBI directions issued in 2012 prohibit acceptance of fresh deposits. Interest waivers under the OTS scheme amounted to Rs 6.62 crore in 2023–24 and Rs 1.41 crore in 2024–25, with no principal write-offs. Of 686 sanctioned posts, 360 are filled. Promotions have been deferred due to accumulated losses of Rs 224.74 crore as of March 2025.
Urban Cooperative Bank Ltd Anantnag:
Established in 1987, the bank operates within Anantnag district through five branches and has 3,504 members. Its total loan portfolio as of December 31, 2025 stood at Rs 3,484.03 lakh, with gross NPAs of Rs 417.67 lakh (11.99 percent) and zero net NPA. No loan waivers were reported. Of 30 sanctioned posts, 26 are filled. Three employees are due for promotion, subject to vacancy and process completion.
Citizens Cooperative Bank Ltd Jammu:
Founded in 1978, the bank operates across Jammu province with 11 branches and four extension counters, serving 45,034 members. Total advances stand at Rs 8,642.21 lakh, with gross NPAs of Rs 1,837.56 lakh (21.26 percent), while net NPAs are reported at zero. The bank follows an OTS policy for NPAs classified up to March 31, 2021, but no loan waivers were granted in the last two years. Of 139 sanctioned posts, 123 are filled. Promotions are currently restricted due to RBI-imposed constraints.
Kashmir Mercantile Cooperative Bank Ltd Sopore:
Registered in 1986 and licensed by RBI in 1987, the Sopore-based bank operates in Baramulla, Bandipora and Kupwara districts with six branches and 10,145 members. Total advances stand at Rs 4,146.41 lakh, with gross NPAs of Rs 256.29 lakh (6.18 percent) and net NPAs of Rs 95.75 lakh. The bank has reported operating profits over the past decade and no accumulated losses. Rs 15.01 lakh in interest was waived under OTS in the past two years. Out of 59 sanctioned posts, 37 are filled, and five employees are due for promotion.
Devika Urban Cooperative Bank Ltd Udhampur:
Established in 1998, the bank operates in Udhampur and Reasi districts through four branches with 4,880 members. Total advances stand at Rs 6,135.5 lakh against disbursements of Rs 7,858 lakh, and gross NPAs are Rs 341.9 lakh. The bank reported losses of Rs 86.24 lakh in 2024–25 and Rs 53.26 lakh up to December 2025, though no major audit objections were raised. Of 21 sanctioned posts, 11 are filled. Promotions have been withheld due to recent financial losses.
The data shared in the assembly indicates structural stress in several district central cooperative banks, marked by high NPA ratios, negative net worth and accumulated losses, while some urban cooperative banks have maintained operational stability with controlled NPAs and clean audit records.
