Co-Operative Bank News for January 2026
State Co-op Banks, DCCBs post steady growth in 2024-25: RBI Report
As per the Reserve Bank of India’s Re- port on Trend and Progress of Banking in India 2024-25, State Co-operative Banks (StCBs) and District Central Co- operative Banks (DCCBs), which together constitute the short-term rural co-operative credit structure, reported steady balance sheet expansion, sustained growth in deposits and advances, and improving asset quality during 2024-25.
While StCBs recorded faster growth in advances supported by higher borrowings and refinance, DCCBs leveraged their wider branch network to maintain stronger deposit mobilisation and credit outreach at the district level, reinforcing their complementary roles in agricultural credit delivery.
At end-March 2025, there were 34 StCBs operating through 2,146 branches and 351 DCCBs with a net- work of 13,825 branches, linked to over
1.07 lakh Primary Agricultural Credit Societies (PACS) serving more than 6.5 lakh villages across the country.
During 2024-25, the balance sheet size of StCBs increased by 7.7 per cent to Rs 5.26 lakh crore from Rs 4.89 lakh crore a year ago. Deposits grew by 6.8 per cent to Rs 2.74 lakh crore, while borrowings rose by 9.5 per cent to Rs
1.90 lakh crore, increasing their share in total liabilities to 36.1 per cent from
35.5 per cent, largely due to higher borrowings from NABARD. Capital and reserves together increased to Rs 37,212 crore at end-March 2025.
Urban co-operative banks see their strongest credit growth in 6 years: RBI
Urban Co-operative Banks (UCBs) sustained their recovery momentum in FY25, shifting from balance sheet re- pair to steady growth, as credit expansion, profitability and capital strength improved across the sector, according to the Reserve Bank of India’s Trend and Progress of Banking in India re- port.
The consolidated balance sheet of UCBs grew 4.4% in FY25, faster than 4.0% in the previous year. Credit growth accelerated to 6.7%, the highest in six years, while deposit growth improved to 5.2%.
The momentum carried into the first half of FY26, with deposits rising 6.8% and advances 6.4% by end-September 2025. The credit-deposit ratio in- creased to 63.3%, indicating better intermediation efficiency.
The RBI data also highlighted the sector’s ongoing consolidation under the four-tier regulatory framework.
RBI announces merger of these 4 Banks starting 1st January, 2026
The Reserve Bank of India’s latest co- operative bank merger update, effective from January 1, 2026, may not have grabbed primetime television slots, but within Gujarat’s banking circles, it is being watched closely. Four cooperative banks in the state are set to merge under two separate arrange- ments approved by the RBI, continuing a quiet but steady reshaping of India’s grassroots banking system. Un- like the headline-grabbing public sec- tor bank mergers of the past decade, this development touches a different nerve local savers, small traders, and families whose financial lives revolve around neighbourhood cooperative branches.
For years, cooperative banks have played the role of community financiers, often stepping in where large commercial banks hesitate.
