HYDERABAD, JUNE 25, 2025: In response to recent reports citing operational deficiencies and regulatory violations at the Telangana State Cooperative Apex Bank (TGSCAB), it is imperative to set the record straight with verifiable data and facts. The allegations made are not only unfounded but also fail to reflect the remarkable financial transformation that TGCAB has undergone over the last decade, the TGSCAB stated in a press note here on Wednesday.
Exceptional Financial Growth and Stability
Between FY 2014–15 and FY 2024–25, TGCAB has demonstrated sustained financial progress across all key indicators:
- Paid-up Share Capital increased from ₹101.98 crore to ₹412.10 crore—reflecting robust capital support.
- Reserves surged from ₹399.16 crore to ₹1310.93 crore—a growth of over 228%.
- Own Funds strengthened from ₹501.14 crore to ₹1723.03 crore, signifying a healthy internal accrual base.
This significant capital accretion has bolstered the bank’s financial stability and enhanced its capacity to support the rural cooperative ecosystem.
Strong Operational Performance
Core banking metrics reflect a healthy and sustainable expansion:
- Deposits more than doubled from ₹2871.57 crore to ₹7996.27 crore.
- Loans & Advances quintupled from ₹3435.52 crore to ₹16975.69 crore.
- Total Business Turnover grew nearly fourfold from ₹6307.09 crore to ₹24971.96 crore.
This performance reflects growing public trust and successful outreach in rural credit delivery.
Asset Quality: Among the Best in Class
The cornerstone of a bank’s credibility lies in asset quality—and TGCAB’s metrics are exemplary:
- Gross NPAs declined sharply from ₹204.09 crore (5.94%) to just ₹10.75 crore (0.06%)—a rare achievement in today’s banking landscape.
- Net NPAs remain at 0.00%, underscoring an uncompromising recovery culture and prudent credit monitoring.
- Capital to Risk-Weighted Assets Ratio (CRAR) has been maintained at 10.38%, in line with regulatory norms.
These numbers unequivocally dismiss claims of growing NPAs, weak risk management, or systemic lending failures.
Gold Loan Portfolio: Responsible Expansion
The gold loan segment has shown responsible growth:
- From ₹438.95 crore in 2015 to ₹1576.40 crore in 2025, with negligible delinquencies.
Contrary to reports of large-scale fraud or irregularities, internal controls and audits have been significantly strengthened, evident from the extremely low default ratio and prompt corrective actions.
Profitability & Net Worth Strength
TGCAB posted a Gross Profit of ₹115.11 crore in FY 2024–25, demonstrating operational efficiency and sound revenue streams.
Net Worth now stands at ₹1158.18 crore, further reinforcing the bank’s financial position.
These metrics refute the narrative of “deteriorating profitability” and instead highlight prudent cost management and financial discipline.
A Call for Responsible Reporting
While constructive criticism and regulatory oversight are welcome, baseless claims and selective reporting can cause reputational damage and public panic. The facts clearly show that TGCAB is not only financially sound but also an emerging leader in the cooperative banking sector.
As a custodian of rural credit and cooperative empowerment in Telangana, TGCAB remains committed to transparency, compliance, and continuous improvement. We urge stakeholders, regulators, and the public to assess performance based on audited data and regulatory compliance, not conjecture.
About the Author
