Rural cooperative banks continue to play a pivotal role in agricultural financing across India, as per data presented by Union Finance Minister Nirmala Sitharaman in the Lok Sabha.
According to figures compiled by the National Bank for Agriculture and Rural Development, cooperative banks account for a significant share of outstanding agricultural loans in multiple states as of December 31, 2025. Maharashtra leads with Rs 46,906 crore, followed by Gujarat (Rs 44,239 crore), Karnataka (Rs 30,100 crore), and Madhya Pradesh (Rs 29,189 crore), highlighting the deep-rooted presence of the cooperative credit structure.
The data also points to the complementary role played by Regional Rural Banks and Scheduled Commercial Banks. However, cooperative institutions remain crucial for last-mile credit delivery, particularly for small and marginal farmers.
At the same time, agricultural credit disbursement across the country has grown at a robust 15% CAGR between FY 2022-23 and FY 2024-25, with states like Tamil Nadu, Uttar Pradesh, Maharashtra, and Rajasthan recording steady increases.
The figures reaffirm the continued importance of cooperative banks in strengthening India’s rural credit ecosystem.
