Cooperative Banks credit rural communities, playing a vital role in India's economic development. Early detection of Bankruptcy can prevent financial failures and protect stakeholders such as depositors, investors, policymakers, and the government. The motivation behind this study is to understand how a particular model can prevent financial collapse in the future and to understand the financial distress or viability of four state cooperative banks under four different regions. The study examined the financial distress and viability of Odisha, Goa, Meghalaya, and Kerala State Cooperative banks, intending to determine whether these four banks are financially stable under different parameters. Financial distress is evaluated using Altman's Z-score model, and financial viability is measured by return on equity using the Dupont ratio. The average Z-score of MSCB, OSCB, GSCB, and KSCB is 6.9542, 7.0416, 6.7473, and 6.5608, respectively, from 2018–19 to 2022–23. Above SCBs should focus more on improving their average Return on equity, which is 8.25% for MSCB, 17% for OSCB, 15.65% for GSCB, and 29.325% for KSCB over a period from 2019–20 to 2022–23. Overall, MSCB, OSCB, GSCB, and KSCB operate under a safe zone, and these four state cooperative banks are financially stable.