The Uttar Pradesh government’s concerted efforts to revitalize its cooperative banking sector have yielded remarkable results, underscoring a transformative shift in rural financial empowerment. Since 2017, the Uttar Pradesh Cooperative Bank’s net profit has surged from Rs 32.82 crore to over Rs 100 crore in 2025, marking a threefold increase.
Simultaneously, the total business of district cooperative banks expanded significantly to Rs 41,234 crore, reflecting their growing role in the rural economy . This growth is attributed to a series of strategic measures implemented by the state government.
Loan disbursements by the Uttar Pradesh Cooperative Bank escalated from Rs 9,190 crore in 2017 to Rs 23,061 crore in 2025, indicating enhanced lending activity. Crop loan disbursements to farmers also doubled, reaching Rs 11,516 crore, ensuring financial support for agricultural activities and contributing to increased farm productivity .
To bolster rural banking infrastructure, 13 new branches of cooperative banks were established. Additionally, Primary Agricultural Credit Societies (PACS) were upgraded into multi-service centers, offering a range of services such as banking, seeds, fertilizers, and insurance under one roof, thereby enhancing convenience for rural communities.
The government’s emphasis on improved management practices and enhanced transparency has been pivotal in this transformation. Chief Minister Yogi Adityanath highlighted the role of cooperatives in empowering farmers and realizing a self-reliant rural economy.
Initiatives like the ‘Mukhyamantri Krishak Samridhi Yojana’ aim to boost income and self-reliance among small and marginal farmers by providing affordable loans and better access to credit .
Furthermore, the integration of technology has been a cornerstone of these reforms. The computerization of over 5,600 Multipurpose Primary Agricultural Credit Societies (M-PACS) is underway, and cooperative banks are being connected to NABARD’s Core Banking Solution (CBS) cloud platform, enhancing efficiency and service delivery .
These comprehensive reforms underscore the Uttar Pradesh government’s commitment to strengthening cooperative institutions, fostering financial inclusion, and driving rural development.
The significant increase in profits and business volume of cooperative banks reflects the success of these initiatives in transforming the rural financial landscape.
