Gujarat’s co-operative banking sector has delivered a strong performance in FY 2025–26, with deposits witnessing a sharp surge across key regions, signalling renewed depositor confidence.
This momentum comes at a time when volatility in equity markets is prompting investors to shift towards safer avenues such as fixed deposits, benefiting co-operative banks across the state.
At the forefront of this growth is Surat, which has clearly emerged as Gujarat’s largest deposit mobilisation hub. Leading the charge, Surat People’s Co-operative Bank saw deposits rise from Rs 6,898 crore to Rs 7,686 crore, registering an impressive 11.42% growth.
Varachha Co-operative Bank posted one of the sharpest gains, with deposits increasing by Rs 775 crore to Rs 4,411 crore, marking a robust 21.32% growth. Sutex Co-operative Bank also maintained strong momentum, with deposits climbing from Rs 3,021 crore to Rs 3,455 crore, reflecting a 14.36% increase.
What makes Surat’s performance particularly striking is the scale of fresh inflows. These three banks alone added nearly Rs 2,000 crore in deposits within a year, underlining the city’s dominance in Gujarat’s co-operative banking landscape.
The growth is further supported by other Surat-based lenders. Prime Co-op Bank reported deposits of Rs 2,746 crore, while Sarvodaya Sahakari Bank crossed the Rs 1,000 crore mark, registering a strong 18.50% rise.
The ripple effect of this surge is visible across Gujarat. Ahmedabad-based Kalupur Co-operative Bank retained its leadership position, with deposits increasing by Rs 1,732 crore to Rs 14,029 crore, marking a healthy 14.09% growth.
Rajkot Nagrik Sahakari Bank also reported solid performance, with deposits reaching Rs 7,132 crore, up 10.7% year-on-year. In contrast, Mehsana Urban Co-operative Bank recorded moderate growth, with deposits rising to Rs 9,394 crore.
While deposit growth has been robust, credit expansion in several banks has remained relatively measured. This reflects a cautious and disciplined lending approach, with banks focusing on asset quality and long-term stability rather than aggressive expansion.
Overall, the sector’s performance highlights a clear shift in depositor behaviour, with co-operative banks regaining prominence as trusted financial institutions. Backed by strong local economies, particularly Surat’s thriving textile and diamond sectors, these banks continue to play a critical role in supporting MSMEs and small businesses.
The message is clear, Gujarat’s co-operative banking sector is not just growing, it is strengthening, with Surat firmly leading the state’s deposit growth story.
