As a result of financial sector reforms, co-operative banks have to face stiff competition in the market, thanks to the banking technology explosion, new prudential banking norms, customer central banking operations and deregulated and market-oriented banking systems. In response to these changes, co-operative banks had to redefine their business model and strategy. These banks are not only supposed to diversify the loan portfolio, but they have to channelise the savings and deposits to the economic system. The present study is an endeavor to examine the trends in the deposits of the district co-operative banks in Punjab in the post diversification period.