Banks log 8% Credit growth, 39% priority lending with CDR at 41.6%
Leh, Oct 15: Leh, Oct 15: Dr. Pawan Kotwal, Chief Secretary of the Union Territory of Ladakh, lauded the performance of the banking sector and urged institutions to extend more robust lending to the UT’s pivotal sectors—agriculture, small enterprises, and tourism. Emphasizing the region’s reliance on these sectors for livelihood and growth, he called for proactive and timely credit delivery under flagship central schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), Stand-Up India, and MUDRA. He also underlined the importance of seamless coordination between banks and government departments to ensure that credit reaches intended beneficiaries, particularly those residing in remote and inaccessible areas.
Dr. Kotwal presided over the 13th Union Territory Level Bankers Committee (UTLBC) meeting held in Leh, which focused on the performance of banks in the UT for the quarter ending June 2025.
The meeting highlighted that priority sector advances achieved 39% of the annual credit target, with disbursements amounting to ₹3,447.5 crore. In the non-priority sector, banks met 40% of the target, sanctioning loans worth ₹3,128.6 crore.
Banking deposits in the UT also showed positive growth, increasing by 13% year-on-year to reach ₹10,354.42 crore as of June 2025. Total advances grew by 8% year-on-year, reaching ₹4,148.00 crore during the same period, with the credit-deposit ratio standing at 41.60%.
The meeting discussed the Credit Guarantee Fund Scheme (CGFS), which enables banks to extend collateral-free loans to eligible borrowers in Ladakh. The Regional Director of the Reserve Bank of India (RBI), Jammu, emphasized the scheme’s role in promoting financial inclusion and supporting economic activities in remote areas.
A detailed presentation on the performance and key achievements of banks was delivered by Smt. Tsering Wangmo, Chief Manager, State Bank of India, covering credit flow to priority sectors, credit-deposit ratios, and progress in financial inclusion initiatives.
Dr. Kotwal commended the banks’ performance and stressed the need for enhanced lending in critical sectors such as agriculture, small businesses, and tourism. He urged institutions to increase disbursements under schemes like PMEGP and MUDRA, and called for better coordination between banks and government departments to facilitate timely credit delivery, particularly in remote regions.
The Chief Secretary emphasized the importance of strengthening key sectors that directly contribute to sustainable development and local economic growth. He highlighted agriculture’s role in ensuring food security and rural employment and encouraged local farmers to adopt modern practices to enhance productivity and marketability. Additionally, he underlined the growing significance of solar energy as a clean and renewable resource, urging stakeholders to invest in solar infrastructure to reduce dependence on conventional power sources and support environmental sustainability.
The Regional Director, RBI, also informed the house about the nationwide campaign launched by the Department of Financial Services (DFS) on unclaimed financial assets. He directed all banks to actively participate in identifying and returning unclaimed deposits to rightful owners or legal heirs, enhancing transparency in the financial system.
The meeting was attended by senior officials, including Commissioner Secretary Dr. Laltinkhuma Franklin (IAS); Administrative Secretaries Shashank Ala (Rural Development), Bhupesh Choudhary (Agriculture & Horticulture), and Rudra Goud P.T (Animal Husbandry, Sheep Husbandry & Fisheries/Industries & Commerce); Chandra Shekhar Azad, Regional Director, RBI, Jammu (via VC); Meetesh Sharma, Assistant General Manager, RBI Jammu (via VC); Rakesh Kumar (IAS), DC Kargil (via VC); Sonam Norbu (JKAS), ADDC Leh; Tsewang Dorjey, Zonal Head, J&K Bank; Tsewang Dorjey, AGM, NABARD; Ravinder Singh, Assistant General Manager, SBI; and representatives from the Reserve Bank of India, NABARD, member banks, and relevant government departments.
The deliberations concluded with a collective commitment to strengthen Ladakh’s credit ecosystem through sustained collaboration between banks, government departments, and financial agencies to drive inclusive economic growth across the Union Territory.
