This is perhaps the stupidest question to ask.

Why do you need to even ask this question. If Indian banking is concerned…there are 3 types of banks…

a) Public sector banks

b) Co-operative banks

c) Small private sector banks

d) Large private sector banks

A few funny banks are Axis bank, Icici bank and Idbi banks which have no clear private sector promoter. If UTI and Lic are the promoters of Axis and Idbi banks, then I have no clue how they are private sector banks. Funny. In my head these are also psu banks.

That brings us to co-operative banks. If you are a small retail investor I have no clue why you should be in a co-operative bank. I can think of the following:

a) getting better attention

b) small banks so better service

c) home service etc.

It is an amazingly high risk to take for you to put money in a co-operative bank. If you cannot understand capital adequacy (I know how many Rbi officers do not understand this), return on capital, net interest margin, Gross npa…..etc.

Why the HELL should you go through all this? Later on you may realize that the numbers was fudged. Staying away makes far far more sense!

If you are a small deposit holder, please do not keep money in a co-operative bank. End of story. Just stay away.

YOU DO NOT NEED THIS SHIT. Stick to big names like SBI, Hdfc, etc.

Keep it simple. Just stay  away from this shit.

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  1. Thanks for such an honest and straightforward advice! One question, if it is that simple, why does RBI give license to Co-operative banks to exist and operate?

  2. Diptakshya Banerjee

    I had suggested this to all my Friends & relatives way back in 2005 when i was a Commerce Student and got real understanding of how Co-operative banks work.

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