Hyderabad: IT and Industries Minister D Sridhar Babu emphasised that cooperative banks in Telangana operate not for profit, but to serve community interests. He said that they follow the CARE model (Community-focused, Affordable & Accessible Credit, Relationship-based banking, Empowering Local Entrepreneurs).

While formally inaugurating the Agrasen Bank’s Ameerpet branch on Sunday, the Minister said that in support of this sector, the State Government has adopted the P.A.T.H. Framework: Policy Support, Access to Digital Tools, Training & Capacity Building and Hybrid Finance Ecosystems. “This initiative promotes schemes such as self-employment loans for youth and underprivileged communities, financial linkages for women’s self-help groups, and green loans,” he explained.

The Minister said that there was a time when banks were merely associated with deposits and withdrawals. However, that definition has significantly evolved. “Today, banks are leveraging technology to meet the changing needs and aspirations of customers, offering a wide range of services. Cooperative banks, in particular, have emerged as crucial institutions in the economic landscape—especially in delivering financial services to marginalized sections of society. According to the RBI Annual Report 2024, over 85 million citizens across the country now use cooperative banking services. The total deposits and advances in this sector have surpassed`5.5 lakh crore,” the Sridhar Babu highlighted.

“There are 48 Urban Cooperative Banks in Telangana, operating through 321 branches across urban and semi-urban regions. Their total business turnover for the previous financial year stood at Rs 17,000 crore, with a credit-deposit ratio of 66.7%. Branches in Kukatpally, Malakpet, and Ameerpet remain particularly active,” he added.