Thiruvananthapuram, Jun 1 (PTI) Kerala’s banking sector recorded strong growth across key indicators during the financial year ending March 2026, according to the SLBC at a meeting held on Monday.

Chief Minister V D Satheesan inaugurated the state-level meeting and stressed the role of banks in Kerala’s economic growth, calling for closer collaboration between the government and the banking sector, a press release said.

The State-Level Bankers’ Committee noted significant progress in deposits and advances compared to the previous financial year.

Total deposits in the state grew 12 per cent year-on-year to Rs 10,62,694 crore, while total advances rose 13 per cent to Rs 7,74,507 crore.

Kerala’s Credit-Deposit (CD) Ratio improved to 72.88 per cent, well above the 60 per cent benchmark prescribed by the Reserve Bank of India (RBI).

Agricultural lending increased 12 per cent to an all-time high of Rs 1,73,931 crore.

Credit to the Micro, Small and Medium Enterprises (MSME) sector also posted robust growth, rising 11 per cent to a record Rs 1,05,545 crore, it said.

Deposits from Non-Resident Keralites (NRKs) rose 11 per cent to Rs 3,24,636 crore.

The committee commended banks for maintaining strong credit flow to agriculture, MSMEs, self-employment ventures, and other priority sectors.

Addressing the gathering, the CM said banks would play a crucial role in Kerala’s future economic transformation.

He highlighted the state government’s ongoing tax administration reforms and development initiatives, stressing the need for active participation from the banking sector.

He said plans to integrate ports, inland waterways, and logistics infrastructure would significantly transform Kerala’s economy, with banks expected to play a major role in financing these projects.

He also described remittances from expatriate Keralites as one of the strongest pillars of the state’s economy.

He proposed collaboration between the government, NORKA, and the expatriate community to promote entrepreneurial initiatives for returning migrants, generate employment opportunities, and stimulate economic growth.

Highlighting emerging demographic and sustainability challenges, he urged banks to expand support for the “silver economy” by developing products and services tailored for senior citizens.

He also called for greater financial support for renewable energy projects, it added.

Congratulating the banking sector on its strong performance during 2025–26, he held discussions with bankers on strengthening cooperation to achieve the state’s long-term development goals.

The meeting also reviewed the implementation of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Central Government to support MSMEs, non-MSME enterprises, and the airline sector facing short-term financial stress due to the West Asian crisis.

Stressing the importance of timely assistance, the committee directed member banks to identify eligible borrowers and ensure expeditious delivery of benefits under the scheme.

The review meeting assessed the performance of Kerala’s banking sector up to March 31, 2026, and discussed measures to strengthen credit flow to priority sectors while supporting the state’s broader economic development.

Among those present were Chief Secretary A Jayathilak; Canara Bank Executive Director Bhavendra Kumar; SLBC Convener and Canara Bank General Manager Santosh V S; RBI Regional Director Praveen Kumar Vasantha Ramachandran; and NABARD General Manager Jyothis Jagannath.

Senior officials from the state government, banks, the RBI, NABARD, and other financial institutions also attended the meeting. PTI TGB SSK