Saraswat Co-operative Bank aims to double its total business to ₹2 lakh crore within six years, supported by an expansion into southern Indian states. The bank recently surpassed the ₹1 lakh crore business milestone, maintaining zero net bad loans over the past four years as it focuses on technology-driven growth.
Detailed Coverage
Saraswat Co-operative Bank, currently the largest urban co-operative bank in India, has announced a roadmap to double its total business to ₹2 lakh crore over the next six years. This strategic plan marks a significant transition for the institution as it shifts from its traditional stronghold in western India toward a broader, pan-India presence.
Scaling Operations and Regional Expansion
Having already crossed the ₹1 lakh crore milestone for total business—which includes the sum of all deposits and advances—as of March 2026, the bank has reported a current business figure of approximately ₹1.09 lakh crore. To achieve the ₹2 lakh crore target, management is focusing on organic expansion. This involves entering new markets in Tamil Nadu, Telangana, and Andhra Pradesh, with a specific interest in establishing a presence in major economic hubs like Hyderabad, Chennai, and Visakhapatnam. The bank estimates an annual growth rate of 10% to 12% is required to reach this goal.
Asset Quality and Financial Position
For investors and depositors assessing the bank's stability, asset quality remains a key metric. Saraswat Bank has reported a reduction in its gross non-performing assets (NPAs) to 1.8% of gross advances, an improvement from the 2.25% recorded in the previous year. Furthermore, the bank has maintained its net NPA levels at zero for four consecutive years, suggesting a disciplined approach to loan recovery and risk management. With core equity capital at approximately ₹325 crore and total own funds exceeding ₹5,500 crore, the bank relies heavily on internal accruals to support its balance sheet.
Future Capital and Strategic Focus
To fuel this expansion, the bank is currently awaiting regulatory approvals to issue Perpetual Non-Cumulative Preference Shares (PNCPS), which is expected to raise an additional ₹400-500 crore in capital. Beyond physical expansion, the institution is directing significant investment toward technology and system upgrades to improve efficiency. As a co-operative entity, the success of this strategy will depend on the bank’s ability to manage costs while entering competitive new regions. The next monitorable updates for stakeholders will include progress on these southern state entries, the finalization of the capital-raising plans through preference shares, and the ability to maintain current asset quality standards during this period of aggressive growth.