A Comparative Study of Deposit Mobilization and Loan Disbursement in Co-Operative Banks with Special Reference to Khamgaon Urban Co-Operative Bank, Amravati

Abstract The co-operative banking sector in India plays a crucial role in promoting financial inclusion by mobilizing local savings and providing credit to underserved sections of society. Urban co-operative banks, in particular, act as community-based financial intermediaries balancing social responsibility with financial sustainability. This study examines the relationship between deposit mobilization and loan disbursement with special reference to Khamgaon Urban Co-operative Bank Ltd., Amravati. The primary purpose of the study is to analyze trends in deposits and advances, assess their interrelationship, and evaluate how effectively the bank has managed liquidity, profitability, and risk amid regulatory reforms, digital transformation, and post-pandemic challenges. The research adopts a descriptive and analytical research design, using both primary data (questionnaires and interviews with 110 respondents including customers and employees) and secondary data (annual reports, RBI and NABARD publications). Tools such as percentage analysis, ratio analysis, comparative analysis, and correlation analysis were employed. The findings reveal steady growth in deposits and advances, a healthy Credit–Deposit Ratio, strong capital adequacy, and zero net NPAs, indicating efficient fund management and prudent credit practices. The study concludes that effective deposit mobilization and disciplined loan disbursement are mutually reinforcing and essential for sustainable growth. It also highlights the positive role of governance reforms and digital banking in enhancing operational efficiency. Keywords: Deposit Mobilization, Loan Disbursement, Urban Co-operative Banks, Financial Performance, Credit–Deposit Ratio, Digital Banking