Asia’s largest cooperative bank, Kerala State Cooperative Bank (Kerala Bank) has delivered a strong performance in FY 2025–26, further cementing its leadership in India’s cooperative banking space. The Bank’s total business rose to Rs 1,28,700 crore, registering a solid 5.9% growth over Rs 1,21,106 crore recorded in the previous financial year.
This growth has been driven by a consistent rise in both deposits and advances. Deposits increased to Rs 75,500 crore from Rs 70,763 crore, marking a healthy 6.69% growth and reflecting sustained public confidence in the institution.
On the lending front, loan outstanding grew to Rs 53,249 crore from Rs 50,343 crore, a 5.44% rise. Kerala Bank had earlier created history by becoming the first cooperative bank in India to cross the Rs 50,000 crore mark in loan outstanding, highlighting its scale and expanding reach.
Talking to Indian Cooperative correspondent, CEO Jorty M. Chacko of Kerala Bank said that the Bank’s financial position remains stable across key parameters.
He added that the final profit figures will be announced only after the completion of the statutory audit. However, he cautioned that profitability may come under some pressure due to the impact of the Investment Deposit Ratio (IDR), unless regulatory relief is provided by the Reserve Bank of India.
Looking ahead, Chacko said the Bank is targeting a business mix of over Rs 1.38 lakh crore in the current financial year, leveraging its strong network of 823 branches. He also revealed that the Bank’s NPAs have reduced significantly, with detailed figures expected to be released soon, further strengthening its growth outlook.
The biggest highlight of the year has been the Bank’s exceptional performance in gold loans. Backed by aggressive campaigns and customer-focused initiatives, gold loan disbursement surged by a remarkable 78.32%, rising from Rs 6,505 crore to Rs 11,600 crore.
This sharp increase has helped the Bank secure the fourth position among all banks in Kerala in terms of gold loan outstanding, underlining its growing competitiveness even against private and public sector banks.
Remaining committed to its cooperative ethos, Kerala Bank continued to prioritise agricultural lending.
During the year, it disbursed Rs 3,744 crore in agricultural loans, with total agri-loan outstanding reaching Rs 12,278 crore, constituting 23.06% of its total loan portfolio. This sustained focus on rural and farm credit reinforces its role in supporting grassroots economic development.
Operational performance also saw notable improvement. Per-branch business increased to Rs 157.37 crore from Rs 148.17 crore, reflecting a rise of Rs 9.2 crore per branch and improved efficiency across its wide network.
Bank President P. Mohanan Master and CEO Jorty M. Chacko credited this growth to the dedication and hard work of employees.