Canara Bank’s Employee Drive: Raising Deposits and Strengthening Customer Bonds
Canara Bank Employees Raise Over Rs 16,700 Crore in 10 Weeks
In a remarkable effort to boost deposit growth, state-owned Canara Bank empowered its employees to become deposit mobilizers. The bank’s 82,000-strong workforce was tasked with reaching out to their personal networks and encouraging them to open new accounts or increase their existing deposits.
A Call to Action and Wholehearted Response
This unique initiative, launched on January 26th, 2023, saw each employee aiming to bring in Rs 10 lakh in deposits, either in CASA (current and savings account) or retail term deposits. Canara Bank’s Managing Director and Chief Executive, K Satyanarayana Raju, attributed the success of this drive to the bank’s efforts in improving employee benefits and fostering a positive work environment.
“In the last 2-3 years, we have taken steps to get benefits to the staff members, bringing transparency in promotions, performance recognition, and transfers, which has gone well. When we gave a call, we explained to them properly and we could convince them about the need of the hour,” Raju explained.
Positive Results and Reduced Reliance on Bulk Deposits
The employees wholeheartedly embraced the challenge, successfully mobilizing Rs 16,700 crore in deposits. This split evenly between CASA and term deposits, effectively reducing the bank’s credit deposit ratio to 73 percent in the March quarter from 76 percent in December.
This success also led to a decrease in the bank’s reliance on bulk deposits, which are typically more expensive. The share of high-cost liabilities dropped to 23 percent from 25 percent earlier.
Focus on Customer Relationships
Raju emphasized that this drive was not merely about achieving a specific deposit target but about strengthening relationships with customers. The initiative has fostered a sense of loyalty among existing customers, and the bank plans to expand its focus on monthly recurring deposits in the future.
