The Reserve Bank of India (RBI) on Friday released its annual Handbook of Statistics on the Indian Economy, 2024-25, putting the spotlight on the growing role of cooperative banks in India’s credit system.
The data shows that cooperative institutions disbursed close to Rs 2.40 lakh crore in agricultural and allied loans in 2024-25, making them a key pillar of the overall Rs 28.69 lakh crore ground-level credit flow during the year. Their outstanding loan book also grew to more than Rs 2.72 lakh crore, underlining their expanding reach in rural finance.
A striking highlight of the report is the improvement in asset quality. Urban Cooperative Banks (UCBs) have brought down their gross NPAs from 12.1% in 2020-21 to 7.3% in 2023-24. State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) too recorded similar progress, reflecting stronger financial discipline and regulatory oversight.
Officials attribute part of this turnaround to the ongoing computerisation of Primary Agricultural Credit Societies (PACS), which is streamlining operations, improving transparency, and tightening loan recovery mechanisms at the grassroots.
Analysts say the numbers highlight the resilience of India’s cooperative banking sector, which has long served as a lifeline for rural households and small borrowers. With digital reforms and steady credit growth, the sector is now better positioned to support the government’s vision of inclusive and sustainable rural development.