Amid reports of cash shortages at automated teller machines (ATMs) in several parts of the country, Canara Bank Managing Director and Chief Executive Officer Brajesh Kumar Singh has dismissed concerns of any widespread cash crunch, saying only a small proportion of ATMs face temporary operational disruptions at any given time.
"We operate more than 11,000 ATMs. At any point, around 5% may be temporarily unavailable due to technical issues, maintenance, cash replenishment delays or other operational reasons. However, there is no widespread cash shortage," Singh said in his first media interaction after taking charge of the public sector lender on June 1.
He noted that cash demand at ATMs has fallen significantly over the years due to the rapid adoption of digital payment platforms such as UPI.
"Demand for ATM cash has reduced substantially because of UPI and digital payments," he said.
Despite the shift towards digital transactions, Singh ruled out any plans to reduce the bank's ATM footprint.
"We are not shutting ATMs. Instead, we are relocating them to areas where demand is growing, such as newly developed residential zones. In locations with high transaction volumes, we are even adding more ATMs," he said.
Singh, who took assumed the charges on from 1 June, outlined an ambitious growth strategy focused on improving the bank's low-cost deposit base, expanding retail lending and maintaining asset quality.
The bank plans to raise its current account savings account (CASA) ratio from around 30% to 30-32% during FY27 and eventually to about 35% over the next three years.
"Our foremost priority is strengthening the deposit franchise, particularly low-cost CASA deposits. A stronger CASA base will help support margins and improve profitability," he said.
Singh acknowledged that achieving CASA ratios of 40% or more, once common among leading banks, has become increasingly difficult as customers shift surplus funds to investment products and government payment systems reduce idle balances in savings accounts.
On the lending side, Canara Bank intends to increase the share of retail, agriculture and MSME (RAM) loans from the current 59% of advances to around 65% over the next three years.
