The Centre for Professional Excellence in Cooperatives (C-PEC), BIRD, Lucknow, has spotlighted Karimnagar District Central Cooperative Bank (Karimnagar DCCB) as a model of digital transformation in its report “Standout Practices in Cooperative Banks”.
According to the study, Karimnagar DCCB’s introduction of a mobile banking application on December 26, 2021 proved to be a turning point in strengthening its low-cost deposit base (CASA).
Within the first quarter of the launch, the bank’s CASA share jumped from 39% to 43%, marking the highest level in the 2019–2024 period. CASA balances increased by nearly Rs 130 crore, from Rs 864.56 crore to Rs 994.31 crore, indicating strong customer adoption and deeper engagement through digital channels.
The study found that even as fixed deposit rates rose in FY23–FY24, Karimnagar DCCB maintained a structurally higher CASA plateau, demonstrating resilience and customer stickiness. The growth was largely driven by UPI, QR-based collections, and integrated digital services, which encouraged customers to keep higher balances in their savings and current accounts.
Key factors behind the success included improved accessibility, awareness campaigns linking mobile usage to benefits, and cross-product linkages such as loan repayments and subsidy credits through the app.
Looking ahead, the bank plans to introduce AI-based financial insights, data-driven account reactivation, and digital salary ecosystems to further boost engagement and deposit growth.
Highlighting the initiative, Dr. Nirupam Mehrotra, Director, BIRD Lucknow, stated that documenting such success stories helps strengthen cooperative governance and financial sustainability across India. He commended the Karimnagar DCCB’s efforts as a replicable model for other cooperative banks seeking to enhance digital adoption and build a resilient, low-cost funding base.
The report, part of a NABARD-led pilot study in Telangana, showcases twelve standout practices across cooperative banks, covering areas like digital transformation, compliance, loan diversification, and customer-centric innovation.
“The UPI-enabled mobile app created a step-change in Karimnagar DCCB’s low-cost funding. It stands as a proven lever for sustainable CASA growth and digital inclusion in the cooperative sector,” the study concluded.
