Top 10 Best Cooperative Banks In India

What are Cooperative Banks? Why are they important for the Indian Economy?  

For more than a century, the best Cooperative Banks in India have played an important role in promoting financial inclusion and ensuring last-mile delivery of credit and banking services mainly to rural areas or semi-urban enterprises. Established on the principle of ‘No Profit, No Loss’, these institutions are commonly referred to as people-run, people-owned banks and they were not only expected to be profitable also but cater for social needs. They offer basic banking services like savings bank accounts, term deposits, and also retail loans like home loans, personal loans, education loans, business loans, and more.  

Cooperative banks in India were originally established under the Cooperative Societies Act of 1912 and later brought under the aegis of the Reserve Bank of India (RBI) under the Banking Regulation Act of 1949 and the Banking Laws (Application to Cooperative Societies) Act of 1965. 

• Cooperative Banks operate based on a community ownership model.  

• Their motto is "No Profit, No Loss." 

• Their primary function is accepting deposits and providing credit, thus catering to both retail and business customer segments.  

• Their organizational structure comprises of credit unions, mutual savings banks, and cooperative societies. 

• One of the few financial setups to tide over the global financial crisis of 2007-08 with minimal loss.  

List of 10 Best cooperative banks in india

 

1. Saraswat Co-operative Bank 

Established in 1918, Saraswat Cooperative Bank is one of the largest and most trusted urban cooperative banks in India. Having its headquarters at Mumbai, Maharashtra, this bank has grown leaps and bounds and now exists in six states all over India, including Maharashtra, Gujarat, Goa, Karnataka, Madhya Pradesh, and Delhi with more than 294 branches. 

• Comprehensive Banking Facilities: The bank has all kinds of retail banking, Netbanking, mobile banking, loans, and deposit accounts services. 

• Digitalization: Convenient digital banking services like online payment for bills, different apps for mobile banking, as well as its very accessible website. 

• Customer-Friendly service: It has a very transparent policy that will get you calling the bank back-that is what has fortified its reputation. 

• The bank has a large customer base with a business mix that goes beyond ₹75,000 as of March 2023. 

• Innovative Offerings: Retail loans that cater to a wide segment of customers like home loans, personal loans, education loans to business loans. 

2. Cosmos Cooperative Bank  

Cosmos Bank was established in 1906 and is one of the oldest operating cooperative banks in India and yet have adopted modern banking technology with ease so that their customers enjoy superior banking facilities.  

• Business Mix: The total business of the bank currently is ₹35,400 crore, among which ₹20,216 crore is in deposit form, and ₹15,192 crore as advance. 

• Wide Network: There are more than 140 branches across India, and the services range from banking to a wide area of services offered. 

• Customer-centric Services: It offers personal, corporate, and retail banking solutions for the customers. 

• Innovative Banking Solutions: Modern technology in services such as mobile banking, online banking, and core banking solutions. 

• Regulatory Compliance: RBI regulations have to be followed. Hence, all its operations will be wholly transparent, accountable, and trustworthy. 

• Awards & Recognitions: It has helped to serve customers with excellence and banking innovation; one has been awarded by various financial institutions. 

3. Shamrao Vithal Co-operative Bank (SVC) 

Shamrao Vithal Co-operative Bank (SVC Bank) was established in Mumbai, Maharashtra in 1906. They are one of the leading scheduled urban cooperative banks in India with a vast network across multiple states, including Maharashtra, Karnataka, Gujarat, and Delhi.  

• Wide Range of Banking Services: SVC Bank provides comprehensive banking solutions, including retail banking, corporate banking, loans, deposits, and digital banking services. 

• Digital Banking: The bank has adopted modern banking technologies, offering services like internet banking, mobile banking, and UPI-based transactions. 

• Customer centric services: SVC Bank is known for its customer-centric approach, ensuring efficient service delivery and tailored financial products for its clients. 

• Wide Presence: The bank operates across 11 states and one union territory with a growing branch network. 

4. Abhyudaya Co-operative Bank 

Abhydaya Co-operative Bank was established in 1964, and has since grown to become one of the highest rated co-operative banks in India. Headquartered in Mumbai, Maharashtra, the bank has a strong presence in Maharashtra, Gujarat, and Karnataka. 

Key highlights of Abhyudaya Co-operative Bank: 

• Complete Bouquet of Banking Services: The bank offers a wide range of services, including retail banking, loans, deposits, mobile banking, and digital banking solutions. 

• Community Growth Focused: Abhyudaya Bank was established with the primary aim of supporting the socio-economically weaker sections by offering affordable financial services. 

• Digital Banking: The bank has embraced modern technologies, offering internet and mobile banking to provide easy access to banking services. 

• Wide Presence: It operates a wide network of branches across several states for easy access. 

5. Bharat Co-operative Bank 

It was established in 1978 and is headquartered in Mumbai, Maharashtra. The bank has a wide network of branches and ATMs across Maharashtra, Karnataka, and Gujarat  

• Offers basic banking services including savings and current accounts, fixed deposits, and other investment instruments. 

• Provides retail loan products like home loans, vehicle loans, personal loans, business loans, and education loans. 

• Offers digital banking services like netbanking, mobile banking, and UPI payments. 

• Customers can get RuPay debit cards with attractive rewards program. 

• Also offers insurance products such as life, health, and accident insurance. 

• Customers can avail secure locker facilities for storing valuables in their home branch.  

6. TJSB Co-operative Bank 

TJSB Co-operative Bank, headquartered in Thane, Maharashtra, has been operational since 1972. With a wide range of network branches across five states, including Maharashtra, Goa, Karnataka, Gujarat, and Madhya Pradesh, they offer banking services for the benefit of rural and urban customers alike. 

• Offers a variety of banking services including savings and current accounts, fixed deposits, and other investment options. 

• A wide range of retail loan products - home loans, education loans, women entrepreneur loans, gold loans, salary overdraft facility, vehicle loans, personal loans, and business loans. 

• Digital banking services are offered for the convenience of the customers – Netbanking, Phonebanking, SMS Banking, and more  

• TranZapp – an app dedicated for their UPI transactions 

• A wide range of RuPay Debit Cards that come with various benefits, including a rewards program and ATM withdrawal facilities. 

• Branches are equipped with safety locker facility for the customers to secure their valuables.  

• Other services include Demat accounts, mutual fund investments, Forex, Insurance, GST, and partnership with various Govt. sponsored schemes.  

7. NKGSB Co-operative Bank  

NKGSB Co-operative Bank was established in 1917, in Mumbai, Maharashtra. They have around 104 branches across multiple states, including Maharashtra, Karnataka, Goa, Gujarat, Madhya Pradesh, and the Union Territories of Daman, Diu, Dadra, and Nagar Haveli.  

• Banking Services: Offers savings accounts, current accounts, and term deposits with attractive interest rates. 

• Loan Products: Provides home loans, personal loans, vehicle loans, gold loans, EV loans, solar panel loans, professional loans, and other loans catering to various customer needs. 

• Women Entrepreneur Financing: Women are given special loans like Stree Udyogika Loans and Stree Sakthi loan to empower them achieve their dreams.  

• Digital Banking services like internet banking, mobile banking, Any branch banking, UPI payments, and SMS banking for easy access and convenience. 

• Rupay Cards: Offers RuPay debit cards with ATM withdrawal facilities and other benefits. 

• Additional Services: Provides locker facilities, Demat accounts, Mutual Funds, Forex services, Insurance, and NRI banking services. 

8. Janata Sahakari Bank 

Established in 1949 in Pune, Janata Sahakari Bank has been helping the economically weak with the required financial assistance to realize their personal and entrepreneurial dreams. With 71 branches spread across the states of Maharashtra and Gujarat, the bank manages deposits worth Rs. 9625.86 crores & Advances worth Rs. 5664.31 crores.  

• Deposit Accounts – the bank offers various deposit schemes like savings account, recurring deposits and fixed deposits.  

• Loans & Advances – The loans portfolio of the bank includes home loans, vehicle loans, cash credit facilities, gold loans, consumer durable loans, education loans, and more.  

• Other services – The bank also offers other financial services like Forex, Insurance and Mutual funds.  

• Digital Banking – Customers can enjoy facilities like internet banking, mobile app, SMS Banking, NEFT/IMPS/RTGS/, PPS, and more.  

9. Kalupur Commercial Co-operative Bank 

Established in 1970, with the core idea of financing grain merchants of Ahmedabad, Kalupur Commercial Co-operative Bank, has since grown to cater to a vast segment of rural and urban customers. The bank operates with the mission of catering to individuals and businesses to take much needed finance at the right time.  

Basic Banking Facilities: Offers basic banking facilities to all customers – savings deposits & term deposits.  

Branch Banking Facilities: Offer a wide range of banking facilities at the branch like lockers, fund transfers, Demat, e-tax payments, stamp franking, PAN card services, and more.  

Digital Banking: WhatsApp Banking, UPI, Positive Payment, missed call banking, Netbanking, mobile banking, and more.  

Additional services: Forex, NRE-NRO accounts, foreign remittances, Import & Export.  

10. Punjab State Co-operative Bank 

Established in 1949, the Punjab State Co-operative Bank, the bank operates 17 branches and 1 extension counter in Chandigarh. Additionally, the bank operates through 20 District Central Cooperative Banks with over 800 branches spread across Punjab.  

Basic Banking Facilities: Under basic bank accounts, the bank offers savings account, current account, and locker accounts. In deposit accounts, they have term deposits and recurring deposits.  

Social Security Schemes: They also offer Govt. backed social security schemes like Sehkari Bank Bima Yojna (SBBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY).  

Digital Banking: Facilities include online fund transfers via NEFT/RTGS, Positive Pay, mobile banking, E-Stamping, and more.  

Loans & Advances for the farming sector: Under lending, they offer Short Term crop loans, medium term agri loans, revolving cash credit facility for farmers, piggery loan scheme, goat rearing loans, fishery development scheme, and more.  

Retail Loans:  For retail customers, they offer education loan, employee loan, home loans, loan against property, loans for women entrepreneurs, vehicle loans, and more.  

FAQs on Cooperative Banks in India

1. How many cooperative banks are there in India?

As of 2024, India has around 1,500 urban cooperative banks (UCBs) and over 96,000 rural cooperative banks, including state cooperative banks and district central cooperative banks. These banks play a crucial role in providing banking services to rural and semi-urban areas, supporting the agricultural and cooperative sectors.

2. Which cooperative banks offer the best retail banking services in India?  

Top cooperative banks like Saraswat Cooperative Bank, Cosmos Cooperative Bank, and Shamrao Vithal Co-operative Bank (SVC) offer a wide range of retail banking services like savings accounts, term deposits, loans, and digital banking solutions for the convenience of customers.  

3. How are cooperative banks different from commercial banks?  

Cooperative banks are basically built by community members and operate on a "No Profit, No Loss" principle. They primarily cater to underserved individuals and businesses of the community by giving them affordable banking services, while commercial banks work for profit.  

4. What are the banking services I can avail at cooperative banks?  

Cooperative banks also offer a wide range of banking services like savings and current accounts, term deposits, retail loans (home, personal, vehicle), digital banking, and insurance products. 

5. Do cooperative banks offer digital banking services too?  

Absolutely!  Most leading cooperative banks in India have embraced modern technology to offer services like internet banking, mobile banking, UPI payments, and mobile apps for convenient banking anytime anywhere.  

6. What are some of the loan products offered by cooperative banks?  

The top cooperative banks in India offer various loan products, such as home loans, vehicle loans, gold loans, business loans, and special loans for women entrepreneurs and professionals. 

7. What is the difference between commercial bank and cooperative bank?

Commercial banks are profit-oriented institutions offering services like deposits, loans, and financial transactions to individuals and businesses, following guidelines set by regulatory authorities. Cooperative banks, however, are community-based and member-owned, focusing on providing financial support to local communities, small businesses, and farmers. These banks prioritize mutual benefit over profit and operate under regulations specific to cooperative societies.