SRINAGAR: Banks operating in Jammu and Kashmir disbursed Rs 84,384 crore to 19.37 lakh beneficiaries during 2025-26, exceeding the annual credit target by 8 per cent, even as the government raised concerns over the Union Territory’s low credit-deposit ratio and weak lending in some key sectors.
The figures were reviewed at the 19th meeting of the Jammu and Kashmir Union Territory Level Bankers’ Committee (UTLBC), chaired by Chief Secretary Atal Dulloo at SKICC here on Friday.
The total credit disbursement during the financial year ended March 31, 2026, amounted to 108 per cent of the annual target. Of the total lending, Rs 44,228.30 crore was deployed under the priority sector, with JK Bank accounting for 63.41 per cent of the priority-sector credit.
While the Chief Secretary described the achievement on priority-sector lending as historic and appreciated the efforts of banks and government departments, he flagged the Credit-Deposit (CD) ratio as a major concern.
The CD ratio in JK currently stands at around 61 per cent, substantially below the national average of about 81 per cent.
Dulloo called for a clear and time-bound strategy to raise the ratio, saying local deposits need to be channelled more effectively into productive investments within the Union Territory.
“While the overall performance under ACP is encouraging, the Credit-Deposit Ratio remains below the national average which is a cause of concern,” he said, directing banks to prepare a roadmap with defined strategies and interventions to progressively improve the ratio.
The Chief Secretary also called for expansion of the formal banking network in rural and far-flung areas. Banks were asked to prepare a time-bound plan for opening new brick-and-mortar branches over the next year to improve access to banking services.
The meeting also brought scrutiny on the performance of several public sector banks under priority-sector lending. Dulloo expressed dissatisfaction with their performance and urged them to take a more proactive approach towards agriculture finance.
He said the problem was more one of intent than capacity and asked banks to view agriculture as a viable business opportunity rather than a high-risk sector.
Education and housing finance also came under criticism, with the Chief Secretary asking banks to identify the constraints affecting lending and introduce more competitive products and pricing to improve credit flow.
The government also flagged JK’s lagging enrolment under three major social-security schemes—Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY).
Banks were directed to intensify enrolment campaigns and ensure wider coverage of eligible beneficiaries.
Dulloo further asked banks to proactively engage farmers, women’s self-help groups, Udyam-registered MSMEs and artisans and onboard them on the Unified Lending Interface to facilitate uninterrupted loan journeys.
The meeting reviewed the implementation of government-sponsored schemes and examined measures to improve credit flow, banking penetration, financial inclusion and banking infrastructure across the Union Territory.
JK Bank Managing Director and CEO and UTLBC Convener Amitava Chatterjee said the banking sector had witnessed substantial operational and institutional growth in the Union Territory over the past two decades.
He said banks remained committed to expanding services across all geographical areas of JK and pointed to the National Strategy for Financial Inclusion 2025-30 as an avenue for ensuring banking access in rural and urban pockets.
The meeting was attended by Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar; RBI Regional Director Chandrashekhar Azad; NABARD General Manager Vikas Mittal; JK Bank Executive Director Sudhir Gupta and senior officers from the government, RBI, NABARD, JK Bank and other banks operating in JK.
