<p><p> The banking sector has been playing key role in the development of Indian economy. The co–operative banks in India </p> <div>have been financing rural and urban borrowers to invest in production activities from the day of their inception on the </div> <div>basis of co–operation principle. Further, the District Central Cooperative Bank in Belgaum District with wide net work of </div> <div>branches in rural and semi urban areas has been providing necessary banking services to the development of district since its inception. It has </div> <div>been also acting as mediatory for many government sponsored programmes relating to poverty alleviation and self employment. The present </div> <div>study is based on the secondary data collected from annual credit plan of the Lead District Bank. The study revealed that there have significant </div> <div>differences in the branches of rural, semi–urban and urban areas in deposit mobilization and credit deployment during study period</div></p>