In a move that underscores the growing ambition and capability of India’s cooperative banking sector, Saraswat Cooperative Bank is charting a bold course to become India’s first universal bank within the cooperative fold.
With a strong foundation, progressive leadership, and evolving policy support from the Ministry of Cooperation, the bank is not only aiming to double its business to ₹2 lakh crore in the next decade, but also working to transform itself into a model for cooperative banking modernization.
Founded in 1918, Saraswat Bank is already one of India’s largest urban cooperative banks, with a total business (deposits and advances) of ₹91,814 crore as of March 2025. It comprises ₹55,481 crore in deposits and ₹36,333 crore in advances. Now, the bank is positioning itself to compete directly with mainstream private and public sector banks — not just in numbers, but in vision.
Marching Towards Universal Banking
Chairman Gautam E. Thakur has emphasized that Saraswat Bank is fully equipped — in terms of products, systems, processes and manpower — to function as a universal bank within the cooperative sector. This transformation, if approved, would mark the first instance of a cooperative institution functioning like a full-service commercial bank in India.
This vision is in line with the NS Vishwanathan Committee Report (2021) on Urban Cooperative Banks (UCBs), which proposed a clear pathway for large cooperative banks (Tier-IV UCBs with deposits over ₹10,000 crore) to become universal banks. However, this will require enabling regulations.
Earlier, the bank also approached the Reserve Bank of India (RBI) to acquire New India Cooperative Bank, further strengthening its asset base and customer reach.
“With this transformational journey, we are not only aiming at the ₹1 lakh crore business milestone, but also preparing to cross the next ₹1 lakh crore mark within a decade,” said Thakur.
Matching Pace with Mainstream Banks
Despite being a cooperative institution, Saraswat Bank has consistently outperformed many small finance banks (SFBs) and even some smaller private sector banks in terms of size and asset quality. Thakur noted that the bank’s actual competitors are now large public and private banks, highlighting the bank’s confidence in its strong fundamentals and operational model.
FY25 witnessed the highest-ever annual business growth in the bank’s 107-year history — an increase of nearly ₹9,800 crore. This incremental growth reflects both internal operational strength and an increasing trust among cooperative members and retail customers.
Policy Support and Changing Landscape of Cooperative Sector.
Saraswat Bank’s aspirations align closely with the Union Government’s broader cooperative sector vision spearheaded by the Ministry of Cooperation, helmed by Union Minister Amit Shah. The Ministry has been consistently taking inittaive to modernize and empower cooperatives, enabling them to participate meaningfully in India’s economic transformation.
By supporting such transformations and encouraging consolidation, digitization, and expansion in the cooperative space, the government is creating a conducive policy environment where well-governed cooperative banks like Saraswat can scale up responsibly and sustainably.
Saraswat Bank’s vision reflects a broader shift — where cooperatives are no longer limited to grassroots finance but are rising to play a national role in India’s banking ecosystem.
