Banks in Kerala recorded an 11 per cent growth in non-resident (NR) deposits during 2025-26, taking the total NR deposit base to ₹3.24 lakh crore, according to a review meeting of the State Level Bankers’ Committee (SLBC).
The State’s banking sector registered robust growth across key indicators. Total deposits increased by 12 per cent to ₹10.62 lakh crore, while total credit expanded by 13 per cent to ₹7.74 lakh crore.
Priority sector lending also witnessed strong growth during the year. Agricultural credit reached an all-time high of ₹1.73 lakh crore, marking a 12 per cent increase. Lending to the MSME sector grew by 11 per cent. Kerala’s credit-deposit ratio (CDR) stood at 72.88 per cent, significantly higher than the 60 per cent benchmark stipulated by the Reserve Bank of India.
The SLBC meeting also discussed the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 approved by the Union Government. The scheme provides guarantee coverage of up to 85 per cent for MSMEs and 90 per cent for non-MSMEs, including airlines, to address short-term liquidity mismatches arising from the West Asia crisis.
Addressing the meeting, Chief Minister V.D. Satheesan sought greater support from the banking sector for the flagship programmes of the United Democratic Front (UDF) government, including the Indira Guarantees and several key development initiatives. He urged banks to become “development partners” in advancing programmes aimed at stimulating economic growth and building a “Puthuyuga Keralam” (New Age Kerala).
The Chief Minister said the government aims to facilitate the establishment of at least 10,000 MSME units and called for enhanced credit support to manufacturing, MSMEs, food processing and agro- based industries, logistics, tourism, renewable energy, and startups.
He also charted out the government’s long-term plans to unlock the potential of Kerala’s 600-km coastline and transform the State into South Asia’s aviation hub.
Published on June 2, 2026
