Credit-Deposit Ratio at 72%: How Kerala’s Banking Sector Outpaced RBI Benchmarks in FY26

The banking sector in Keralam recorded strong growth during the financial year ended March 2026, according to the State-Level Bankers’ Committee.

The performance was reviewed at the SLBC meeting for the June 2026 quarter held here on Thursday, according to a statement.

The meeting discussed measures to further strengthen the flow of credit to priority sectors and support the state’s economic growth.

Total deposits in Keralam reached Rs 10,84,241 crore, registering an annual growth of 13 per cent, according to an official statement.

Total advances stood at Rs 7,81,043 crore, reflecting an annual growth of 11 per cent. The credit-deposit ratio stood at 72.04 per cent, well above the 60 per cent benchmark prescribed by the Reserve Bank of India.

Agricultural credit reached an all-time high of Rs 1,76,142 crore, registering a growth of 16 per cent. Credit to micro, small and medium enterprises touched a record Rs 1,08,948 crore, registering a growth of 13 per cent.

NRI deposits stood at Rs 3,35,440 crore, registering an annual growth of 17 per cent.

The meeting noted significant improvement in credit and deposit mobilisation during the financial year compared with the previous year.

The committee appreciated the sustained efforts of banks to ensure adequate credit for agriculture, MSMEs, self-employment ventures and other priority sectors, while supporting economic activity across sectors.

Keralam’s Additional Chief Secretary (Finance) K R Jyothilal and Additional Chief Secretary (Industries) A P M Mohammed Hanish addressed the meeting.

Both officials stressed the need to strengthen credit flow, financial inclusion, delivery of social security schemes, financial literacy and innovative banking products.

They emphasised the need to encourage banks to support emerging sectors such as healthcare, advanced manufacturing and renewable energy.

Jyothilal informed the meeting that Invest Kerala Desks were being established at various locations to position the state as an investor-friendly destination.

The initiative aims to attract and facilitate high-value investments in the state by providing necessary support and creating a favourable environment for investors.

The meeting held a detailed discussion on the implementation and progress of crop insurance in the state, with particular emphasis on expanding coverage and ensuring eligible beneficiaries are covered, the statement said.

The performance of banks under various government schemes—PM Surya Ghar: Muft Bijli Yojana, Pradhan Mantri Formalisation of Micro Food Processing Enterprises, Agriculture Infrastructure Fund, Prime Minister’s Employment Generation Programme and PM Vishwakarma—was reviewed, as well.

The meeting discussed measures to improve the outreach and credit linkages of these schemes.

SLBC Keralam reiterated its commitment to continued coordination and cooperation with the state government, the RBI, NABARD and all member banks to support the state’s development priorities and ensure the effective and timely delivery of institutional credit.

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 Chief General Manager Nagesh Kumar Anumal, among others, attended the meeting, the statement added.

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