Banks in Kerala reported an 11% rise in non-resident (NR) deposits in 2025–26, pushing the total NR deposit base to ₹3.24 lakh crore, according to the State Level Bankers’ Committee (SLBC) review meeting.
The banking sector showed broad-based growth across key areas. Total deposits climbed 12% to ₹10.62 lakh crore, while total credit grew 13% to ₹7.74 lakh crore.
Lending to priority sectors also strengthened. Agricultural credit reached a record ₹1.73 lakh crore, up 12%, while loans to MSMEs increased by 11%. The state’s credit-deposit ratio stood at 72.88%, well above the RBI benchmark of 60%.
The meeting also reviewed the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union government. The scheme offers guarantee coverage of up to 85% for MSMEs and 90% for non-MSMEs, including airlines, aimed at easing short-term liquidity pressures linked to the West Asia crisis.
Chief Minister V.D. Satheesan called for stronger participation from banks in supporting key development programmes under the United Democratic Front government, including the Indira Guarantees initiative. He urged lenders to act as development partners in driving economic growth and building a “New Age Kerala.”
He said the government plans to support the creation of at least 10,000 MSME units and push credit flow into sectors such as manufacturing, food processing, agriculture-based industries, logistics, tourism, renewable energy, and startups.
He also outlined long-term ambitions to develop Kerala’s 600-km coastline and position the state as a major aviation hub in South Asia.
