Kashmir Impulse Desk
Srinagar, Aug 29
Banks in Jammu and Kashmir have been asked to increase lending after the J&K’s credit-deposit ratio remained almost 20 percentage points below the national average despite nearly 10 percent growth in deposits and advances during the year ended March 2026.
The credit-deposit ratio rose only marginally to 61.15 percent as of March 31, 2026, from 61.14 percent a year earlier.
At a review meeting chaired by Chief Secretary Atal Dulloo, banks were asked to raise the ratio towards the national average of about 81 percent and prepare a roadmap for doing so.
Aggregate deposits rose 9.84 percent to Rs 2,16,352 crore from Rs 1,96,968 crore during the year, while advances increased 9.86 percent to Rs 1,32,296 crore from Rs 1,20,424 crore.
The review also examined banking infrastructure across J&K.
Thirty-seven banks were operating through 11,703 banking touchpoints, including 2222 brick-and-mortar branches and 9481 banking correspondents.
Banking access has expanded, with one outlet available for every 1048 people in March 2026, compared with one for every 2546 people in March 2021.
The area served by each banking delivery point has also declined, with one outlet available for every 3.61 sq km as of March 2026.
The Reserve Bank of India regional director encouraged banks to open more physical branches, particularly in rural areas.
Dulloo called for greater banking outreach in rural and remote areas and directed banks to prepare a time-bound plan for opening new branches over the next year.
The meeting also reviewed credit disbursement under the Annual Credit Plan for 2025-26.
Banks provided Rs 84,384.12 crore in credit to 19.37 lakh beneficiaries in priority and non-priority sectors, compared with a target of Rs 77,974.29 crore for 19.90 lakh beneficiaries.
Banks achieved 108 percent of the financial target and 97 percent of the target measured by beneficiaries.
