SRINAGAR: Banks operating in Ladakh disbursed Rs 834 crore in loans during the first quarter of 2026-27, achieving 29 per cent of their annual credit target, even as the Union Territory’s Credit-Deposit (CD) ratio remained at 45.74 per cent, well below the 60 per cent benchmark.
The figures were reviewed at the 16th Union Territory Level Bankers Committee (UTLBC) meeting, chaired by Chief Secretary Ashish Kundra, to assess banking performance for the quarter ending June 2026.
Of the total disbursement, Rs 373 crore was extended under Priority Sector Advances, accounting for 26 per cent of the annual target. The remaining credit was disbursed under non-priority sectors.
Total bank deposits in Ladakh stood at Rs 11,630.35 crore at the end of June 2026, registering an annual growth of 12.32 per cent. Credit outstanding increased by 10.48 per cent to Rs 5,319.22 crore during the same period.
The gap between deposits and credit deployment figured prominently during the meeting. NABARD General Manager Vikas Mittal informed the participants that the benchmark CD ratio was 60 per cent. RBI Regional Director Prabhakar Jha pointed out that loans sanctioned by bank head offices outside Ladakh, but about borrowers in the Union Territory, should also be included while calculating Ladakh’s CD ratio.
Directing banks to improve credit flow, Kundra asked them to organise at least one banking camp every month in each district in coordination with the Department of Industries and Commerce. The camps will focus on increasing institutional lending, improving the CD ratio and extending government-sponsored financial assistance to eligible beneficiaries.
The Chief Secretary said the camps should cover agriculture, micro, small and medium enterprises (MSMEs), renewable energy, education, housing and other priority sectors, enabling prospective borrowers to access financial assistance under one roof.
He also directed that the performance of these camps be reviewed in subsequent UTLBC meetings in consultation with the concerned departments to identify bottlenecks and ensure follow-up on loan applications.
Kundra further asked the State Bank of India and Jammu and Kashmir Bank to strengthen their banking presence in the Vibrant Villages through new branches, banking outlets, Business Correspondents and ATMs, particularly in remote and border areas.
In another measure aimed at simplifying access to institutional credit, the Convenor Bank was asked to prepare a common, bank-wise loan application form covering various government-sponsored schemes. The proposed format is intended to simplify applications, improve outreach and facilitate timely disposal of loan cases.
Administrative Secretary Himanshu Gupta informed the meeting that trading and service-sector activities, including Pashmina-related enterprises up to a specified limit, could also be brought under the Mission Yuva scheme.
The meeting was attended by senior officials of the Ladakh Administration, representatives of the RBI, NABARD, SBI, J&K Bank and other financial institutions, besides district-level officers from Leh and Kargil and representatives joining from Sham, Changthang, Nubra, Zanskar and Drass through video conferencing.
