Among the 14 District Co-operative Banks functioning in Kerala at the time of the formation of Kerala State Co-operative Bank, only the Malappuram District Co-operative Bank Ltd had opposed merger with the Kerala State Co-operative Bank. Also, the Kerala High Court has issued a stay order on the Kerala State Government's move to merge the Malappuram District Co-operative Bank with the Kerala State Co-operative Bank. In addition to the 14 district co-operative banks, Kerala has a network of 1,692 Primary Agricultural Credit Societies (PACS's) and 16 licensed Urban Co-operative Banks all of which have become members/shareholders of Kerala State Co-operative Bank.
