Kerala’s banking sector recorded strong growth across key indicators during the financial year ending March 2026, according to the State-Level Bankers’ Committee (SLBC), which reviewed the sector’s performance at its State-Level Review Meeting held in Thiruvananthapuram on Monday.

Inaugurating the meeting, Chief Minister V. D. Satheesan underscored the pivotal role of banks in driving Kerala’s economic development and called for deeper collaboration between the government and the banking sector to support the state’s next phase of growth.

The committee noted that the banking industry achieved significant progress in both deposits and advances compared to the previous financial year. Total deposits in the state grew by 12 per cent year-on-year, reaching ₹10,62,694 crore. Total advances rose by 13 per cent to ₹7,74,507 crore.

Kerala’s Credit-Deposit (CD) Ratio improved to 72.88 per cent, substantially exceeding the 60 per cent benchmark prescribed by the Reserve Bank of India (RBI). Agricultural lending registered a 12 per cent increase over the previous year, reaching an all-time high of ₹1,73,931 crore.

Credit extended to the Micro, Small and Medium Enterprises (MSME) sector also recorded robust growth, rising 11 per cent to a record ₹1,05,545 crore. Deposits from Non-Resident Keralites (NRKs) increased by 11 per cent to ₹3,24,636 crore. The committee commended banks for their continued efforts in ensuring adequate credit flow to agriculture, MSMEs, self-employment ventures, and other priority sectors.

Addressing the gathering, the Chief Minister said that banks would play a crucial role in Kerala’s future economic transformation. He highlighted the state government’s ongoing tax administration reforms and a range of new development initiatives, emphasizing the need for active participation from the banking sector.

He observed that the government’s plans to integrate ports, inland waterways, and logistics infrastructure would bring about a significant transformation in Kerala’s economy. Banks, he said, would have an important responsibility in financing these large-scale infrastructure projects.

The Chief Minister also described remittances from expatriate Keralites as one of the strongest pillars of the state’s economy. He proposed that the government, NORKA, and the expatriate community work together to develop new entrepreneurial initiatives for returning migrants, thereby generating employment opportunities and stimulating economic growth.

Highlighting emerging demographic and sustainability challenges, he urged banks to expand support for the “silver economy” by developing products and services tailored to the needs of senior citizens. He also called for greater financial support for renewable energy projects.

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

The meeting also held detailed deliberations on the implementation of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Central Government to assist MSMEs, non-MSME enterprises, and the airline sector facing short-term financial stress due to the West Asian crisis. Stressing the importance of timely financial assistance, the committee directed all member banks to identify eligible borrowers and ensure the 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 enhancing support for the state’s broader economic development.

Among those present were Chief Secretary Dr. 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; NABARD General Manager Jyothis Jagannath; and senior officials from the State Government, banking institutions, the RBI, NABARD, and other financial agencies.

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