Urban Cooperative Banks (UCBs) in Telangana have closed FY26 on a strong growth note, with total business reaching Rs 20,757 crore, driven by robust lending and steady deposit mobilisation, as per provisional data as on March 31, 2026.
Gayatri Cooperative Urban Bank retained its top position, followed by A.P. Mahesh Cooperative Bank and Adarsh Cooperative Urban Bank, highlighting the continued dominance of leading players in the sector.
Deposits of the 48 UCBs rose by 19.22% year-on-year to Rs 12,162 crore, while advances recorded a sharper 26.30% growth to Rs 8,595 crore, indicating strong credit offtake across the sector. The combined capital base also increased by 16.80% to Rs 4,979 crore, reflecting improved financial strength.
The sector also witnessed aggressive expansion in its physical footprint. The number of branches increased to 400, marking a 24.61% rise, while ATMs grew by 13.11% to 302. Notably, Cash Deposit Machines (CDMs) saw a significant 45.31% jump to 93 units, highlighting a gradual push towards better customer service infrastructure.
However, asset quality remains a key concern. Gross Non-Performing Assets (GNPA) stood at Rs 16,215 crore, underlining persistent stress in loan portfolios despite strong business growth.
Among individual performers, Gayatri Cooperative Urban Bank led the pack with total business of over Rs 4,243 crore, followed by A.P. Mahesh Cooperative Bank at nearly Rs 2,989 crore. Mid-sized lenders such as Adarsh, Agrasen, and Vardhaman Mahila cooperative banks also played a significant role in driving sectoral growth.
Overall, Telangana’s UCB sector continues to expand at a healthy pace, backed by strong credit growth and network expansion. However, rising NPA levels could pose challenges ahead, making asset quality management critical for sustaining growth momentum.
