The Urban Cooperative Banking (UCB) sector in Andhra Pradesh posted steady growth in FY 2025-26, with the combined business of reporting banks crossing Rs 23,315 crore. However, the latest financial data also reflects a growing gap between large profitable banks and smaller lenders facing rising stress and higher NPAs.
According to provisional figures as on March 31, 2026, 41 reporting UCBs together mobilised deposits of around Rs 13,305.97 crore and advances of nearly Rs 10,009.15 crore, taking the sector’s total business to about Rs 23,315.12 crore. Financial data of three banks was unavailable at the time of compilation.
The sector reported a combined gross profit of around Rs 280.63 crore and net profit of approximately Rs 152.78 crore, indicating overall stability in cooperative banking operations across the state.
The Visakhapatnam Coop Bank Ltd remained the largest UCB in Andhra Pradesh with total business of nearly Rs 8,472 crore, including deposits of Rs 4,594.97 crore and advances of Rs 3,877.42 crore. The bank also emerged as the most profitable UCB in the state with a net profit of around Rs 66.09 crore.
The Kakinada Coop Town Bank Ltd secured the second position with business of about Rs 2,039.68 crore and net profit of Rs 17.39 crore, while the Kanakamahalakshmi Coop Urban Bank Ltd followed closely with total business of nearly Rs 1,973.52 crore and net profit of Rs 10.93 crore.
Apart from the top three, only a handful of banks crossed the Rs 1,000 crore business mark. The Aryapuram Coop Urban Bank Ltd and the Gandhi Coop Urban Bank Ltd also emerged as key players with business volumes exceeding Rs 1,200 crore each, highlighting increasing concentration within the sector.
On the other hand, several smaller UCBs continued to face pressure on profitability and asset quality. The Machilipatnam Coop Urban Bank Ltd reported Gross NPA levels of around 23.77%, among the highest in the sector. The Saluru Coop Urban Bank Ltd and the Gudivada Coop Urban Bank Ltd also reported elevated Gross NPAs of 11.56% and 10.60% respectively.
Despite these challenges, Andhra Pradesh’s UCB sector continues to play a vital role in MSME financing and grassroots financial inclusion across urban and semi-urban regions.
Despite these pressures, Andhra Pradesh’s UCB sector continues to play a crucial role in MSME financing, local credit delivery and grassroots financial inclusion across urban and semi-urban centres.