Urban Cooperative Banks (UCBs) in Telangana have registered significant growth in the financial year 2024-25, crossing a total business mix of Rs 17,006 crore as on 31st March 2025.
This marks a substantial rise from Rs 15,300 crore recorded in the previous fiscal year. The sector now operates through a wide network of 321 branches across the state, maintaining a healthy Credit-Deposit (CD) ratio of 66.71 percent, reflecting improved financial intermediation and credit outreach.
In a notable shift in the cooperative banking landscape of Telangana, Gayatri Cooperative Urban Bank has emerged as the top-performing UCB in the state, overtaking the traditionally dominant AP Mahesh Cooperative Urban Bank.
Gayatri Bank posted a business mix of Rs 3,150.50 crore, with a CD ratio of 75.30 percent and a widespread network of 62 branches. In comparison, AP Mahesh Bank registered a business mix of Rs 2,681 crore, operating with 45 branches and a relatively lower CD ratio of 46.90 percent.
The top five urban cooperative banks in Telangana for FY 2024-25 included Gayatri Cooperative Urban Bank, AP Mahesh Cooperative Urban Bank, Adarsh Cooperative Urban Bank (Rs 1,269.90 crore), Darussalam Cooperative Urban Bank (Rs 1,175.10 crore), and Agrasen Cooperative Urban Bank (Rs 1,021 crore).
These five banks together contributed Rs 9,296 crore, accounting for over 54 percent of the total business mix of all UCBs in the state. The remaining 43 cooperative banks accounted for a combined business volume of around Rs 7,800 crore.
The performance of these banks, especially Gayatri and Adarsh Cooperative Banks, highlights the sector’s resilience and adaptability.
Gayatri Bank also leads in terms of ATM and CDM infrastructure, operating 71 ATMs and 42 cash deposit machines, the highest among its peers. Meanwhile, Adarsh Cooperative Bank stood out with a CD ratio of 81.79 percent, among the highest in the state, signaling efficient credit deployment.
Interestingly, smaller banks like Bhadradri Co-operative Urban Bank and Sircilla Co-op. Urban Bank Ltd reported Credit-Deposit (CD) ratios above 90%, indicating active credit deployment despite their relatively limited deposits and infrastructure.
Bhadradri’s CD ratio stood at an impressive 94.81%, with modest business figures around Rs 512 crore, highlighting its efficient utilization of resources.
Market Share Shifts reveal that the top five Urban Co-operative Banks (UCBs) account for more than 50% of the total business among Telangana’s UCB sector. This concentration reflects the growing dominance of larger players within the state.
Banks in the Rs 1,000 to Rs 2,000 crore business segment demonstrated the most consistent year-on-year growth, suggesting steady expansion and strengthening of mid-sized UCBs in Telangana.
However, ATMs and Cash Deposit Machines (CDMs) remain underrepresented across many UCBs, pointing to a pressing need for greater digitization and improved customer access to digital banking services.
Experts believe that this strong performance is the result of increasing digital integration, better customer outreach, and consistent governance reforms.
Telangana’s urban cooperative banks are steadily strengthening their position in the financial ecosystem, catering effectively to the banking needs of semi-urban and urban populations.