UCBs are facing an arduous task to meet the expectations of a highly competitive and demanding credit market. People are expressing worry and doubt about the creditworthiness and sustainability of these institutions, so it is important to analyze their financial situation carefully.This research project was conducted to analyze the financial performance of Urban Co-operative Banks in the Ernakulam District of Kerala in a highly competitive environment. The results showed that the performance of the banks in the area was not satisfactory in terms of all the financial parameters.The results of one bank's performance on various parameters demonstrate that the collective financial performance of all the banks has been poor, requiring each of them to make improvements in different areas. The financial performance of all the Urban Cooperative Banks in Ernakulam District is satisfactory even though there are variations in their performance and they have the potential to improve their performance in the near future.