Thisrefers to “High yields, tight liquidity: Wake-up call for cooperative banks” (THI, May 22). The article rightly highlights the growing pressure on cooperative banks in a period of rising bond yields and uneven liquidity conditions. These institutions remain vital for rural borrowers, small traders and agricultural communities, yet many continue to function with weak risk management systems and excessive dependence on wholesale funding. Instead of merely increasing lending rates, cooperative banks must strengthen governance, improve deposit mobilisation and invest in professional treasury management. Greater financial literacy among customers and timely regulatory guidance from the RBI can also improve resilience. Cooperative banking is not only about profitability; it is equally about sustaining trust and ensuring stable credit access for vulnerable sections of society.

Swathi Senthilkumar, Coimbatore