Te­lan­gana Coop Bank

Aims to in­crease cus­tomer base to 600,000 in the next 3 years:

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Con­se­quent on the re­or­ga­ni­za­tion of the state of Andhra Pradesh and for­ma­tion of Te­lan­gana, the erst­while Andhra Pradesh State Co­op­er­a­tive Bank was bi­fur­cated into the Te­lan­gana State Co­op­er­a­tive Apex Bank (TSCAB) and the Andhra Pradesh State Co­op­er­a­tive Bank (APSCB). At present, TSCAB op­er­ates through 42 busi­ness out­lets, ba­si­cally serv­ing the cosmopolit­an twin cities of Hy­der­abad and Se­cun­der­abad. In ad­di­tion, there are 347 branches of DCCBs and799 branches of PACS com­ing un­der its purview. The bank added 4 branches in Sa­roor­na­gar, Meer­pet, Badan­g­pet and Ma­nurabad re­cently. It has 42 ATMs – 36 on­site and the rest off­site es­sen­tially at sta­tion of the Hy­der­abad Metro – to pro­vide con­ve­nience to its cus­tomers. The bank’s cus­tomer base stands at around 500,000.


Dr Nethi Mu­ralid­har, MD of the bank, says the bank is now of­fer­ing ser­vices to its cus­tomers on par with those of­fered by com­mer­cial banks. It has set up fi­nan­cial lit­er­acy cen­ters for the ben­e­fit of its cus­tomers as well as those of the DCCBs and PACS in col­lab­o­ra­tion with the NABARD. The in­ten­tion is to bring in the un­tapped po­ten­tial cus­tomers to the bank­ing fold and to ed­u­cate them about the ben­e­fits of hav­ing a fi­nan­cial re­la­tion­ship with the banks and us­age of eChan­nels, he adds.

“We are also tar­get­ing to in­crease the cus­tomer base to 600,000 in the next 3 fi­nan­cial years. Some of the salient fea­tures of our op­er­a­tions are that we of­fer at­trac­tive in­ter­est rates for de­posit0rs, timely ser­vice to the cus­tomers, less pro­cess­ing time for gold loans and re­tail loans and locker fa­cil­ity,” says Mu­ralid­har.

One of the steps it has taken re­cently is to set up dig­i­tal sig­nage boards in branches to cre­ate aware­ness among the cus­tomers about var­i­ous prod­ucts/ser­vices of­fered by the bank. These boards also spread the mes­sage about mea­sures that cus­tomers to pre­vent on-line/off-line frauds.

The bank has en­sured that all the new re­cruits are tech-savvy so that they can han­dle the work us­ing modern tech­nol­ogy and also sen­si­tize cus­tomers on the ser­vices of­fered based on tech­nol­ogy.


The bank col­lected `36.22 bil­lion in de­posits in 2018-19. It reg­is­tered a neg­a­tive growth of 5.94% in de­posits com­pared to 2017-18. “We have been striv­ing to scale up the po­si­tion of CASA de­posits by tap­ping the salaried peo­ple, mer­chants and busi­ness­men for open­ing sav­ings bank and cur­rent ac­counts to meet in­dus­try stan­dards. Our CASA is 18.68% as of 201819,” says Mu­ralid­har.


Loans ex­tended to DCCBs for short-term sea­sonal agricultur­e op­er­a­tions form the lion’s share of the to­tal loans pro­vided by the bank, fol­lowed by long-term loans to the agri­cul­tural sec­tor. Refinance from NABARD has been con­sis­tent over the years. Says Mu­ralid­har: We have ex­tended loans amount­ing `55.96 bil­lion in 2018-19, which is up by `4 bil­lion over the pre­vi­ous year. The to­tal amount of loans ex­tended to co­op­er­a­tive fed­er­a­tions stood at `5.37 bil­lion. We have re­ceived refinance from NABARD to the ex­tent of `35.02 bil­lion. We have been able to show con­sis­tent progress on the loans front.”

The bank’s gross NPA has re­duced to `121.4 mil­lion (0.22%) in in 2018-19 from `124.9 mil­lion (0.24%) a year ago. The net NPA has re­mained at zero for many years. Mu­ralid­har claims that the bank has been able to make sig­nif­i­cant progress in bring­ing down the NPA to a min­i­mum level even though NPA in the en­tire bank­ing sys­tem has shown alarm­ing growth.


The bank has a strong IT in­fra­struc­ture us­ing which it is of­fer­ing ser­vices like mo­bile bank­ing and IMPS, in­ter­net bank­ing with view op­tion UPI and NEFT/ RTGS. The bank in­tro­duced IMPS in 2017 and UPI in 2018. Its in­come through var­i­ous eChannles in 2018-19 has been Rs11 mil­lion dur­ing 2018-19, says Mu­ralid­har.

The bank is yet to em­ploy data an­a­lyt­ics tools to fore­cast trans­ac­tion patterns in var­i­ous ser­vices of­fered by it. “At present, we are not us­ing any so­phis­ti­cated data sci­ence tools to fore­cast trans­ac­tion patterns. How­ever, we have in­tro­duced a sim­i­lar method­ol­ogy for fore­cast­ing the num­ber of trans­ac­tions routed through our ATMs. This anal­y­sis is help­ing us to man­age cash in the ATMs ef­fi­ciently,” says Mu­ralid­har.


In­fra­soft Tech­nolo­gies (for CBS) in capex mode, Sar­va­tra Tech­nolo­gies (for switch) in opex mode and Vor­tex En­gi­neer­ing (for ATMs) in capex mode are the 3 ma­jor tech­nol­ogy ven­dors of the bank. The bank has re­cently mi­grated to the NFS plat­form and has been is­su­ing RuPay cards. It has also ini­ti­ated a ma­jor project to com­put­er­ize op­er­a­tions of the 798 PACS in the state. In ad­di­tion, it brought 9 DCCBs on to the NFS plat­form and de­liv­ered 8.5 mil­lion RuPay KCC cards through the DCCBs in 2017-18. It was sec­ond in the coun­try in the num­ber of RuPay plat­inum cards is­sued. The bank has also con­ducted more than 50 Go Dig­i­tal camps in all the DCCBs.

Says Mu­ralid­har: “We de­ployed 1000 mi­cro-ATMs in the DCCB branches and PACS. Some 80% of the PACS have been dig­i­tized and have been brought on to the CBS plat­form and with the due co­op­er­a­tion from the state govern­ment, sys­tem au­dit in the new en­vi­ron­ment has also been con­ducted.”


The bank has been ad­her­ing to the dic­tum ‘More the com­puter lit­er­acy, more is the ca­pa­bil­ity of the bank to flour­ish’. Says Mu­ralid­har: “Com­puter lit­er­acy among our staff mem­bers is on par with the cur­rent needs of the bank­ing in­dus­try. The av­er­age age of our bank em­ployee be­ing in the early 30s and this helps us to en­sure that all our staff mem­bers are quite adept in han­dling the com­puter-based bank­ing applicatio­ns.”

On the train­ing front, the bank has a ded­i­cated train­ing in­sti­tute at Ra­jen­drana­gar which hosts sev­eral train­ing pro­grams to meet most of the needs of the bank’s em­ploy­ees. Apart from this, the bank also nom­i­nates its em­ploy­ees for var­i­ous train­ing pro­grams at pre­mier in­sti­tutes like BIRD and at the train­ing in­sti­tu­tions of the RBI.

Be­sides, the IT ven­dors too pro­vide train­ing to the staff so that em­ploy­ees are ac­quainted with the tech­ni­cal­i­ties of var­i­ous soft­ware and hard­ware applicatio­ns. “Our IT team com­prises 10mem­bers, who are well-versed with the CBS applicatio­ns and ca­pa­ble enough to han­dle the issues re­lated to the applicatio­ns and prod­ucts,” says Mu­ralid­har.


As the bank­ing in­dus­try is un­der­go­ing a rad­i­cal trans­for­ma­tion in terms of op­er­a­tions and use of tech­nol­ogy in the op­er­a­tions, TSCAB feels it should not be left be­hind and would need to re­tail the dy­namism to stay ahead in a highly com­pet­i­tive mar­ket. With this in mind, Mu­ralid­har en­lists the var­i­ous mea­sures the bank would adopt: “We are plan­ning to in­tro­duce new dig­i­tal tech­nol­ogy prod­ucts that are avail­able in the mar­ket for im­prov­ing our busi­ness in a phased man­ner while tak­ing mea­sures for re­tain­ing our ex­ist­ing busi­ness. We are plan­ning to im­ple­ment the Bharat Bill Pay­ment Sys­tem (BBPS), in the cur­rent fi­nan­cial year. For the launch of this dig­i­tal ini­tia­tive, we are in talks with Yes Bank. We are also plan­ning to in­tro­duce Aad­har En­abled Pay­ment Sys­tem and eKYC ser­vices this fi­nan­cial year. Cur­rently test­ing is un­der process.”

The bank is shortly mi­grat­ing to the Pub­lic Fi­nan­cial Man­age­ment Sys­tem (PFMS) plat­form. Us­ing the sys­tem, it will credit all the in­cen­tives of the govern­ment schemes to the ac­counts of the ben­e­fi­cia­ries di­rectly through DBT. These schemes in­clude govern­ment pen­sions, stu­dent schol­ar­ships, var­i­ous cen­tral govern­ment wel­fare schemes, hous­ing schemes, sub­si­dies, etc. The min­istry of ru­ral de­vel­op­ment has di­rected NPCI to use re­pay­ment mod­ule of PFMS plat­form while re­mit­ting the charges and in­cen­tives to dif­fer­ent en­ti­ties af­ter the same is set­tled by the im­ple­ment­ing agen­cies. The test­ing of the plat­form has been com­pleted and the bank al­ready live on PFMS, says Mu­ralid­har.

The bank is also propos­ing to be a di­rect mem­ber of the NFS in­stead of a sub­mem­ber of the IDBI Bank. EMV test­ing is in the fi­nal stage. Once test­ing is com­pleted, the bank will be live on NFS switch as a di­rect mem­ber, says Mu­ralid­har.

Nethi Mu­ralid­har claims the com­puter lit­er­acy among the TSCAB staff mem­bers is on par with the cur­rent needs of the bank­ing in­dus­try

TSCAB’s ATM at a Metro sta­tion in Hy­der­abad

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