Mumbai : The National Urban Cooperative Finance and Development Corporation (NUCFDC) and TransUnion CIBIL jointly unveiled the first edition of the Sahakaar Trends report at the 2025 Credit Conference. According to the report, as of March 2025, portfolio balances for Urban Cooperative Banks (UCBs) stood at INR 2.9 lakh crore, recording a 6% YoY growth and 1.8x growth over the last 5 years (since March 2020). Key product segments saw double-digit growth in portfolio balances, driven by increased demand and wider market reach.
The report notes that the sector is poised for its next phase of growth through a tech-led resurgence, with headroom to advance digital transformation and modernize operations. A strategic focus on technology will unlock stronger growth and enhance competitiveness in a fast-changing financial landscape for UCBs.
The first edition of the Sahakaar Trends report offers a comprehensive view of UCB performance, benchmarking them against peer institutions and laying out data-driven recommendations to help them compete smarter, grow sustainably, and serve more effectively. The report underscores the growing relevance of India’s 1,472 UCBs as critical enablers of the country’s next phase of financial growth, particularly in expanding credit access across small towns and semi-urban India.
With the banking sector projected to grow at 11.5% annually through 2030, UCBs are seen as well-aligned with India’s inclusive development goals. Their deep roots in local economies, community connections, and grassroots presence make them uniquely placed to extend formal credit to India’s next billion borrowers. Serving close to 9 crore Indians, UCBs are not just financial institutions; they are local anchors of trust. As India eyes a $5 trillion economy, UCBs are positioned to rise responsibly and digitally, powering micro-entrepreneurs, self-employed youth, women-led SHGs, informal workers, and first-time homebuyers along the way.
Speaking about the report launch, Mr Prabhat Chaturvedi, CEO, NUCFDC, said, “UCBs have long been pillars of trust and grassroots accessibility. Today, backed by data-driven insights, digital tools, and institutional support, they are poised to lead a new era of inclusive financial growth. Sahakaar Trends is not a report but a roadmap for how UCBs can evolve into agile, future-ready institutions that blend legacy strength with the promise of speed, scale, and digital sophistication.”
“The timing couldn’t be more fitting. The latest Financial Stability Report by the RBI highlights how UCBs are emerging stronger, with credit growth in primary UCBs accelerating to 7.4% year-on-year as of March 2025, with both Scheduled (SUCBs) and Non-Scheduled UCBs (NSUCBs) contributing to this momentum in lending activity. The sector’s capital position has also improved significantly, with the overall Capital to Risk-Weighted Assets Ratio (CRAR) rising to 18.0%. Asset quality has shown a positive shift, with gross NPAs declining to 6.1% and net NPA ratio falling to 0.6%. This data reaffirms our belief that the cooperative banking sector is entering a new chapter marked by resilience, reform, and renewed confidence”.
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