In a strategic move to boost its deposit growth, Canara Bank launched an ambitious initiative where its entire workforce was mobilised to garner funds. In a period of just 10 weeks, this campaign resulted in the mobilisation of ₹16,700 crore, underlining the effectiveness of employee-driven initiatives in achieving business objectives. This blog takes a closer look at the initiative and its impact on the bank’s financials.
Amid a challenging environment for deposit accretion, Canara Bank’s management recognised the urgent need to increase deposits to manage the growing demand for credit. With a credit-deposit (CD) ratio approaching 80%, the bank's management realised that traditional methods might not suffice. The solution? A call to action for the 82,000-strong workforce.
The initiative began on January 26 this year when the top leadership, led by Managing Director and CEO K Satyanarayana Raju, urged employees to leverage their personal networks for deposits. Each employee was tasked with raising ₹10 lakh either in current and savings accounts (CASA) or retail term deposits.
What made this initiative successful was the active participation of Canara Bank’s employees. With the support of trade unions and staff across various levels, the call was embraced wholeheartedly. The leadership made sure that employees understood the need for this drive and how it would contribute to the bank’s overall stability and growth.
Raju highlighted the bank's efforts in the past 2 to 3 years to improve staff satisfaction. Transparent promotions, recognition of performance, and clear transfer policies ensured that the employees were well-engaged and aligned with the bank’s goals.
The drive produced impressive results, with Canara Bank managing to raise ₹16,700 crore in deposits. These funds were split evenly between CASA and term deposits, ensuring a well-balanced growth in the deposit base. This move significantly improved the bank's CD ratio, reducing it to 73% in the March quarter from 76% in December.
Furthermore, the bank saw a decrease in its reliance on high-cost bulk deposits, with the share of such liabilities dropping from 25% to 23%. This reduction not only improved the cost-efficiency of the bank's funding base but also provided a solid foundation for future growth.
While the primary goal of the initiative was to bolster deposit growth in a short timeframe, the long-term benefits are also noteworthy. The drive has helped Canara Bank build stronger connections with its customer base, particularly in the CASA segment, which is expected to yield long-term benefits.
Additionally, the initiative is seen as a stepping stone for the bank’s future strategy. Moving forward, the focus will shift towards attracting monthly recurring deposits, further strengthening the bank's deposit base and enhancing its financial stability.
Read More: Canara Bank Q4 FY25 Profit Surges 33%, Declares 200% Dividend Amid Robust Credit Growth.
Canara Bank’s employee-driven deposit mobilisation drive stands as a testament to the power of collective effort and the significant role that staff engagement can play in achieving organisational goals. This initiative not only improved the bank's immediate deposit figures but also set the stage for a more resilient and well-connected business model in the future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 13, 2025, 3:18 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates