Canara Bank Employees Launch Initiative to Raise Rs 16,700 Crore
Faced with challenges in deposit growth, Canara Bank has launched an innovative internal campaign that mobilized its workforce of 82,000 employees to contribute to deposit collection. In just ten weeks, the initiative successfully garnered an impressive Rs 16,700 crore. This effort, which began on January 26, 2024, comes at a time when the banking sector is experiencing a slowdown in deposit accretion, prompting the bank’s leadership to directly engage staff in boosting the bank’s deposit base.
Employee Engagement and Campaign Strategy
The campaign was initiated by Canara Bank’s top management, who encouraged employees to reach out to their personal and professional networks to help increase deposits. Managing Director and CEO K Satyanarayana Raju explained that each employee was tasked with bringing in Rs 10 lakh in deposits, either through current and savings accounts (CASA) or retail term deposits. The response from employees was overwhelmingly positive, reflecting their alignment with the leadership’s vision and the internal reforms implemented over the past few years. Raju noted that the bank had made significant strides in promoting transparency in promotions, performance recognition, and transfers, which fostered a sense of trust and commitment among staff.
The campaign’s success can be attributed to the collective effort of employees who were motivated by the leadership’s clear communication about the urgency of the situation. Trade unions also supported the initiative, further enhancing its effectiveness. The infusion of Rs 16,700 crore in new deposits was evenly split between CASA and term deposits, demonstrating a balanced approach to deposit mobilization.
Impact on Credit-Deposit Ratio
The substantial increase in deposits has had a significant impact on Canara Bank’s credit-deposit (CD) ratio, which improved from 76 percent in December to 73 percent in the March quarter. Raju explained that the bank was approaching the 80 percent threshold due to rising credit demand in the final quarter, necessitating this urgent employee-led initiative. The campaign not only alleviated immediate pressures but also reduced the bank’s reliance on bulk deposits, which are typically high-cost liabilities. The share of bulk deposits fell from 25 percent to 23 percent, indicating a healthier deposit structure.
Raju emphasized that this initiative was not merely a short-term tactic to inflate end-of-quarter numbers. Instead, it was a strategic move aimed at strengthening the bank’s overall business. The deposits garnered through this campaign are expected to provide long-term benefits, as they contribute to a more stable and sustainable financial foundation for the bank.
Future Plans and Focus Areas
Looking ahead, Canara Bank plans to shift its focus towards mobilizing monthly recurring deposits. This strategic pivot aims to further enhance the bank’s deposit base while fostering a deeper connection with its customer base. Raju highlighted that the campaign has not only improved the bank’s financial metrics but also strengthened its relationship with customers, which is crucial for long-term growth.
The leadership’s proactive approach and the enthusiastic participation of employees have set a positive precedent for future initiatives. By continuing to engage staff in meaningful ways, Canara Bank aims to build on this momentum and ensure sustained growth in its deposit mobilization efforts. The bank’s commitment to transparency and employee involvement will likely play a vital role in its ongoing success in the competitive banking landscape.
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