Bank Leverages 82,000 Employees to Boost Deposit Base Amid Industry-Wide Challenges
Mumbai, May 11 – In a strategic move to counter sluggish deposit growth, Canara Bank has mobilised ₹16,700 crore within ten weeks by engaging its entire workforce in a unique fundraising drive. The initiative, which commenced on January 26, called upon all 82,000 employees to each bring in ₹10 lakh in deposits, either through Current and Savings Accounts (CASA) or retail term deposits.Speaking on the success of the campaign, Managing Director and CEO K Satyanarayana Raju said the initiative was a response to system-wide challenges in deposit accretion. “We asked every staff member to canvas within their personal and professional circles. The response was overwhelming,” Raju said.
Transparent Policies Drive Employee Alignment
Raju attributed the success of the campaign to the organisational trust built over the past two to three years. “We brought transparency in promotions, performance recognition, and transfers. When the need arose, the team responded in full sync with the leadership. Even trade unions supported the initiative,” he noted.The drive yielded deposits equally divided between CASA and retail term deposits, reducing the bank’s credit-deposit (CD) ratio from 76 percent in December to 73 percent by March-end. This helped the bank steer clear of breaching the 80 percent CD ratio threshold, especially during a period of strong credit demand.
Reduced Dependence on High-Cost Bulk Deposits
The success of the employee-led mobilisation also allowed the bank to reduce its dependence on bulk deposits. The share of these high-cost liabilities in the overall deposit mix declined from 25 percent to 23 percent.Raju emphasized that the campaign was not merely a short-term numbers game. “There is stickiness in the CASA balances, which supports sustained business growth. The initiative also deepened customer engagement,” he said.
Future Focus: Recurring Deposit Growth
With the current initiative delivering tangible results, Canara Bank now plans to shift its focus to mobilising monthly recurring deposits. The leadership believes this next step will further stabilise the deposit base and support long-term financial goals.Canara Bank’s internal mobilisation strategy highlights the potential of employee involvement in driving key performance metrics during challenging times in the banking sector.