Abstract

Using time-series econometric techniques, this study investigates the long-term trend and structural dynamics of deposit mobilization in the Odisha State Cooperative Bank (OSCB) from 1950 to 2023. The analysis shows a consistent upward trend in deposits, which is indicative of cooperative banking’s expanding role in fostering rural savings mobilization and financial deepening. The study uses the Chow test and the Bai–Perron multiple structural break test to find structural alterations in the deposit growth pattern. The results show that deposit growth evolved through three distinct phases: an early phase of rapid expansion (1950–1960), a period of institutional consolidation and moderate growth (1961–1997), and a phase of reform-led financial deepening with improved growth (1998–2023). These findings confirm significant structural breaks around 1961 and 1998. The findings imply that deposit mobilization in cooperative banking has been greatly impacted by institutional development, financial inclusion programs, and financial sector reforms. The multiple structural break model provides the best explanation for the deposit growth trajectory, according to a model comparison using AIC and BIC. In order to further boost deposit mobilization and inclusive economic development, the study recommends policy measures for enhancing institutional capacity, digital banking outreach, and financial literacy. It also emphasizes the ongoing significance of cooperative banks in bolstering rural financial inclusion.

Keywords: Cooperative Banking, Deposit Growth, Structural Break, Financial Inclusion, Time Series Analysis, Odisha State Cooperative Bank, Financial Deepening, Econometric Analysis