Canara Bank Staff Drive Collects ₹16,700 Cr in 10 Weeks

Prime Highlights:

82,000 Canara Bank employees mobilized ₹16,700 crore through an employee-funded deposit campaign.
The campaign brought down the credit-deposit ratio of the bank considerably and dependence on costly bulk deposits to a large extent.

Key Facts:

Each employee was motivated to collect ₹10 lakh worth of deposits from his or her social and professional network.
The ₹16,700 crore mobilized were divided between CASA and retail term deposits.
Bulk deposits fell to 25% to 23%, which improved the deposit quality.

Key Background :

To overcome increasing challenges of mobilization of deposits in Indian banking, Canara Bank introduced a special in-house campaign on January 26, 2024, aiming to motivate its employees to contribute towards mobilization of funds. The campaign addressed all of the 82,000 employees and had the aim of mobilization of deposits by word of mouth, and each employee was expected to mobilize ₹10 lakh value of deposits.

The campaign raised ₹16,700 crore in ten weeks. This not only gave the bank’s total deposit base the much-needed push but also assisted in a shift in the mix to more stable and low-cost sources. The raised funds were distributed between CASA and retail term deposits on a fifty-fifty basis. Consequently, the bank’s credit-deposit ratio fell from 76% to 73%, and the bulk deposit percentage fell from 25% to 23%, reflecting a healthier and diversified deposit base.

The success of the programme is largely because of recent changes in internal practices towards development. Canara Bank has begun internal reforms aimed at enhancing transparency in transfers, promotion, and performance appreciation. This has created motivation and sense of ownership among the staff, who welcomed the programme in large numbers. The programme was also appreciated by the trade unions, as they had planned it to be part of long-term organizational goals.

To further grow and sustain momentum, Canara Bank is also concentrated on growing its branch network. It has added 150 branches in FY 2023-24 and plans to add 250 more in FY 2024-25, further assisting its goal of reaching more consumers and mobilizing deposits more efficiently.

Another key strategic area is technology upgradation. The bank has been heavily investing in AI, machine learning, and cybersecurity to improve efficiency, deliver superior customer services, and implement superior risk control. All of these advanced technologies are employed in monitoring customer behavior and preventing fraud.

With robust quarterly performance, enhanced asset quality, and listing plans for its subsidiaries in the coming years, Canara Bank is well on its way to becoming a robust and future-proofed bank while de-risking dependence on costlier funding sources.