Thiruvananthapuram, Sep 10 (SocialNews.XYZ) Kerala's banking sector has recorded strong growth, with credit to agriculture and MSMEs touching record levels even as total deposits crossed Rs 10.84 lakh crore, the State Level Bankers’ Committee (SLBC) said.
The banking sector’s performance was reviewed at the SLBC meeting for the June 2026 quarter held here.
Total deposits with banks in Kerala stood at Rs 10,84,241 crore at the end of March 2026. This marked an annual growth of 13 per cent.
Total advances rose 11 per cent to Rs 7,81,043 crore, while the credit-deposit ratio stood at 72.04 per cent. This was well above the 60 per cent benchmark prescribed by the Reserve Bank of India.
Agricultural credit emerged as one of the major drivers of growth. It touched an all-time high of Rs 1,76,142 crore, representing a 16 per cent annual increase.
Credit to micro, small, and medium enterprises also reached a record Rs 1,08,948 crore. This grew 13 per cent during the year.
The figures indicate a significant expansion of institutional credit to two key segments of Kerala’s economy.
NRI deposits provided another major boost to the banking sector.
They stood at Rs 3,35,440 crore, registering a 17 per cent annual growth.
The SLBC said there had been significant improvement in both credit and deposit mobilisation compared with the previous financial year.
The committee stressed the need to further increase credit flow to priority sectors.
Agriculture, MSMEs, self-employment ventures, and other productive sectors will receive particular attention.
They also called for greater banking support to emerging sectors such as healthcare, advanced manufacturing and renewable energy.
The meeting was told that Invest Kerala Desks are being established at various locations to help attract and facilitate high-value investments in the state.
Implementation of crop insurance was also reviewed.
The committee stressed the need to widen coverage and ensure greater participation by eligible beneficiaries.
The performance of banks under schemes including PM Surya Ghar, PMFME, Agriculture Infrastructure Fund, PMEGP, and PM Vishwakarma was also reviewed.
The SLBC said it would continue to coordinate with the state government, the RBI, NABARD and member banks to improve institutional credit delivery and support Kerala’s development priorities.
Source: IANS
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