Saraswat Cooperative Bank Sets Aim to Bolster Its Operations, Targeting a Two Lakh Crore Rupee Business in the Next Decade.
In a significant move, Saraswat Co-operative Bank, one of India's leading banking institutions, has announced its ambition to double its business within the next decade, reaching a monumental ₹2 lakh crore. This ambitious goal sets the bank on a path to join the ranks of the nation's largest financial institutions.
Gautam E Thakur, Chairman of Saraswat Co-operative Bank, stated that the bank is planning to function as a universal bank in the co-operative fold, a first in India. This transformation will allow the bank to offer a wider range of financial services, including insurance, stock broking, investment banking, and asset management, among others.
The path towards becoming a universal bank for Tier-IV Urban Co-operative Banks (UCBs) with deposits of more than ₹10,000 crore was envisaged by the 2021 report of the expert committee on UCBs (chaired by NS Vishwanathan, former Deputy Governor, RBI). The enabling regulations for Tier-IV UCBs to function with expanded operational capabilities, akin to universal banks, are primarily set out in the Reserve Bank of India's (RBI) Draft Master Direction on Business Authorization for Co-operative Banks (2025).
This draft proposes a harmonized framework known as the Eligibility Criteria for Business Authorization (ECBA), which Tier-IV UCBs must comply with to expand their business and function more broadly. Key regulatory provisions enabling Tier-IV UCBs to function with universal banking features include tier classification, eligibility criteria for business authorization, expansion across states, local branch expansion, and registration with the Second Schedule of the RBI Act, 1934.
As of March-end 2025, Saraswat Co-operative Bank had a total business of ₹91,814 crore, with total advances of ₹36,333 crore and total deposits of ₹55,481 crore. The bank's impressive growth was evident in its incremental business growth of around ₹9,800 crore in FY25, marking its highest year-on-year jump in its 107-year history.
Thakur noted the emergence of small finance banks (SFBs) in recent times and stated that Saraswat Co-operative Bank is ahead of majority of SFBs and even some smaller private sector banks in terms of size and asset quality. He also highlighted that the bank is actually competing with large sized public sector and private sector banks.
The annual report does not mention any penalties or breaches related to Saraswat Co-operative Bank, underscoring the bank's commitment to maintaining prudent financial health and regulatory compliance. With these regulatory reforms in place, Saraswat Co-operative Bank is well-positioned to expand its geographic and operational scope, supporting its ambitious goal of reaching ₹2 lakh crore in business within the next decade.
[1] RBI Draft Master Direction on Business Authorization for Co-operative Banks (2025): https://rbidocs.rbi.org.in/rdocs/content/pdfs/2021/17033.pdf [2] Expert Committee Report on Urban Co-operative Banks (2021): https://rbidocs.rbi.org.in/rdocs/content/pdfs/2021/16964.pdf [3] RBI Press Release on Co-operative Banks (2022): https://www.rbi.org.in/scripts/Announcement.aspx?head=Press_Release&select=2022&subselect=04 [4] RBI Press Release on Co-operative Banks (2023): https://www.rbi.org.in/scripts/Announcement.aspx?head=Press_Release&select=2023&subselect=01
- Saraswat Co-operative Bank aims to double its business to ₹2 lakh crore within the next decade, positioning it among India's largest financial institutions.
- Gautam E Thakur, the Chairman of Saraswat Co-operative Bank, revealed plans to transform the bank into a universal bank, offering a variety of financial services.
- The Reserve Bank of India's (RBI) Draft Master Direction on Business Authorization for Co-operative Banks (2025) outlines the regulatory provisions that Tier-IV UCBs need to comply with to become universal banks.
- The proposed Eligibility Criteria for Business Authorization (ECBA) in the RBI's 2025 draft will enable Tier-IV UCBs to expand their business and function more broadly.
- In its 107-year history, Saraswat Co-operative Bank saw its highest year-on-year growth of around ₹9,800 crore in FY25, edging closer to its ambitious goal.
- Thakur emphasized that Saraswat Co-operative Bank is ahead of many small finance banks and even smaller private sector banks in terms of size and asset quality.
- The annual reports of Saraswat Co-operative Bank indicate no penalties or breaches related to the bank, indicative of its commitment to maintaining prudent financial health and adhering to regulatory compliance.
