“Banks in J&K UT have disbursed credit of Rs. 84,384 Cr during FY 2025-26 to 19.37 lac beneficiaries”
Srinagar :Chief Secretary Atal Dulloo Saturday chaired the 19th meeting of the Jammu & Kashmir Union Territory Level Bankers’ Committee (UTLBC) at SKICC here to review the performance of the banking sector and Government departments in deployment of credit and implementation of banking-related initiatives during the financial year 2025-26 ended March 31, 2026.
During the financial year 2025-26, banks operating in the Union Territory collectively disbursed credit worth Rs 84,384 Cr to 19.37 lac beneficiaries thereby achieving 108% of the annual target. Out of total credit disbursed during FY 2025-26, Rs. 44,228.30 Crore was deployed in priority sector. J&K Bank has the contribution of 63.41% in the total credit disbursed under Priority sector.
The meeting was attended by Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar; Convener, UTLBC and MD & CEO, J&K Bank, Amitava Chatterjee; Regional Director, RBI, Chandrashekhar Azad; General Manager, NABARD, Vikas Mittal; Executive Director, J&K Bank, Sudhir Gupta; and senior officers of the Government, RBI, NABARD, J&K Bank and other banks operating in J&K UT.
Reviewing the performance of the banking sector, the Chief Secretary expressed satisfaction over the historic achievement of the Priority Sector lending targets by the banking sector in Jammu & Kashmir and appreciated the collective efforts of all stakeholders in achieving this milestone.
Expressing concern over the Union Territory’s Credit-Deposit (CD) Ratio, the Chief Secretary stressed the need to progressively raise it from the present level of 61% to the national average of around 81%.
“While the overall performance under ACP is encouraging, the Credit-Deposit Ratio remains below the national average which is a cause of concern. Banks must prepare a clear roadmap with well-defined strategies and interventions to progressively improve the CD Ratio. This is essential to ensure that local savings are effectively channelled into productive investments within the region,” he observed.
The Chief Secretary also emphasised the need to strengthen banking outreach in rural and far-flung areas by expanding the branch network. He directed banks to prepare a time-bound roadmap for establishing new Brick and Mortar branches over the next one year to improve access to formal banking services.
Taking serious note of the unsatisfactory performance of several public sector banks under Priority Sector lending, the Chief Secretary observed that the challenge lay more in intent than in capacity and urged them to adopt a more proactive approach towards agriculture finance by viewing the sector as a viable business opportunity. He also expressed concern over the poor performance in education and housing finance and directed banks to analyse the underlying constraints and introduce more competitive products and pricing to improve credit flow in these important sectors.
The Chief Secretary further observed that the Union Territory continues to lag behind the national average in enrolment under the Government’s flagship social security schemes—Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY)—and called upon banks to intensify enrolment drives to ensure wider coverage of eligible beneficiaries.
Chief Secretary directed banks to proactively engage with eligible farmers, women SHG, Udyam-registered MSMEs and artisans for onboarding them on Unified Lending Interface for uninterrupted loan journeys.
Earlier, welcoming the dignitaries and participants, Convener, UTLBC and MD & CEO, J&K Bank, Amitava Chatterjee highlighted the banking sector’s pivotal role in the socio-economic development of the Union Territory. He said, “The banking sector plays a pivotal role in driving economic transformation, and we remain steadfast in our mission to strengthen financial empowerment, promote entrepreneurship, and enhance access to credit across all segments of society,” he said.
“The banking system in the UT of J&K has exhibited remarkable operational as well as institutional growth over the last two decades. We are committed to providing banking services across all the geographies of the UT. The coverage of revenue centres with banking outlets under the National Strategy for Financial Inclusion 2025-30 will ensure the availability of banking services in all the rural and urban pockets of the Union Territory,” he added.
The meeting also reviewed the implementation of various Government-sponsored schemes and deliberated on measures to strengthen credit flow, improve banking penetration, enhance financial inclusion, expand banking infrastructure and accelerate balanced and inclusive economic development across the Union Territory through coordinated efforts of the Government and the banking sector.
