The large number of restrictions put on cooperative banks on business expansion by way of raising capital has led to Saraswat Cooperative Bank aim towards converting itself into a private sector bank.

The bank is already gearing up to seek approval of banking regulator, Reserve Bank of India in this regard. The bank currently operates the the states of Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Goa and Delhi.

Presently the only option given to cooperative banks to widen their capital base is by issuing shares having face value in the range of Rs 10 to Rs 100 and earn profits.

Till now the only bank of urban cooperative class which has received private bank status is Development Cooperative Bank which is now Development Credit Bank.

"We want to do as much business in the next five years as we did in the last 92 years.......Given that co-operative banks are faced with restrictions on raising capital, we plan to seek shareholders' vote on the option of converting the bank into a private sector bank a couple of years down the line," said Mr Eknath K. Thakur, Chairman, Saraswat Co-operative Bank.