Kerala banking sector grows across metrics, NR deposits surge

During 2025‑26, banks in Kerala saw an 11 % rise in non‑resident deposits, pushing the total NR deposit pool to ₹3.24 lakh crore, as disclosed in a State Level Bankers’ Committee (SLBC) review.

Kerala’s banking sector showed strong performance on major metrics: total deposits climbed 12 % to ₹10.62 lakh crore and total credit grew 13 % to ₹7.74 lakh crore.

Priority‑sector lending also improved markedly. Agricultural loans hit a record ₹1.73 lakh crore, up 12 %, while MSME lending rose 11 %. The state’s credit‑deposit ratio (CDR) came in at 72.88 %, well above the RBI’s 60 % benchmark.

The meeting also covered the Union Government’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, which offers guarantee coverage of up to 85 % for MSMEs and up to 90 % for non‑MSME borrowers such as airlines, aimed at easing short‑term liquidity strains caused by the West Asia situation.

Chief Minister V.D. Satheesan, speaking at the gathering, called for stronger backing from banks for the UDF government’s flagship schemes — notably the Indira Guarantees and other development projects — urging financial institutions to act as “development partners” in driving economic growth and realizing a “Puthuyuga Keralam” (New Age Kerala).

He added that the government targets the creation of at least 10,000 MSME enterprises and appealed for increased credit flow to manufacturing, MSMEs, food‑processing and agro‑based sectors, logistics, tourism, renewable energy and startups.

He also outlined long‑term plans to harness Kerala’s 600‑km coastline and position the state as South Asia’s aviation hub.

Published on June 2, 2026