Retail depositors are increasingly turning to cooperative banks as lower deposit rates at scheduled commercial banks push savers to seek better returns. For the fortnight ended September 19, 2025, term deposits with cooperative banks rose by Rs 2,866 crore or 0.7% to Rs 4.47 lakh crore, up from Rs 4.44 lakh crore on September 5. In contrast, term deposits across all scheduled commercial banks, including public, private, regional rural, small finance, and payment banks, fell by Rs 78,888 crore or 0.4% to Rs 206 lakh crore. Overall deposit growth for scheduled banks, including cooperative banks, dipped by 0.5% to Rs 240.4 lakh crore from Rs 241.6 lakh crore.

On a year-on-year basis, cooperative banks posted a robust 10.34% growth in deposits, outpacing the 9.50% rise seen across scheduled b

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