Kerala State Cooperative Bank, Asia’s largest cooperative bank, delivered a strong performance in FY 2025–26, strengthening its position in India’s cooperative banking sector. The bank’s total business rose to Rs 1,28,700 crore, marking a 5.9% increase from the previous year.
Steady Growth in Deposits and Loans
The growth was driven by healthy expansion in both deposits and lending. Deposits increased to Rs 75,500 crore, up 6.69%, reflecting continued trust from customers. Loan outstanding rose 5.44% to Rs 53,249 crore, crossing the Rs 50,000 crore milestone for the first time in the bank’s history.
Strong Performance in Gold Loans
One of the standout segments was gold loans, which surged 78.32% to Rs 11,600 crore from Rs 6,505 crore. This sharp rise helped Kerala Bank secure the fourth position in gold loan outstanding among banks in the state, highlighting its growing competitiveness.
Focus on Agriculture Lending
The bank maintained its strong focus on rural credit, disbursing Rs 3,744 crore in agricultural loans during the year. Total agriculture loan outstanding stood at Rs 12,278 crore, accounting for 23.06% of its overall loan portfolio, reinforcing its role in supporting the farm sector.
Operational Efficiency Improves
Operational performance also strengthened, with per-branch business rising to Rs 157.37 crore from Rs 148.17 crore. This reflects improved efficiency across its 823-branch network.
Profitability and Outlook
Speaking on the performance, CEO Jorty M. Chacko said the bank’s financial position remains stable, while final profit figures will be announced after statutory audit. He noted that profitability could face some pressure due to regulatory factors unless relief is provided by the Reserve Bank of India.
Looking ahead, the bank is targeting a business mix of over Rs 1.38 lakh crore in the current financial year. Leadership including President P. Mohanan Master and the CEO credited the performance to employee efforts and strong execution across branches.
