Kerala’s banking sector sees growth in 2025-26

Banks in Kerala have seen 11% growth in non-resident (NR) deposits in 2025-26. NR deposits now stand at ₹ 3.24 crore, according to a state-level review meeting of the State Level Bankers’ Committee (SLBC) held in Thiruvananthapuram on Monday.

In fact, the state’s banking sector saw growth in headline indicators. Total deposits rose to ₹10.62 crore, a 12% increase.

Total credit now stands at ₹ 7.74 crore, an increase of 13%. Priority sector lending has also seen significant growth in 2025-26. Agricultural loans are highest so far at ₹ 1.73 crore (12% growth). MSME credit grew by 11%. The sovereign credit deposit ratio (CDR) is fixed at 72.88%, which is more than 60% set by the Reserve Bank of India.

The SLBC meeting discussed the emergency credit line guarantee scheme 5.0 approved by the Union government for MSMEs and 90% for non-MSMEs as well as the aviation sector to address the short-term liquidity mismatch caused by the West Asian crisis.

Published – 01 Jun 2026 19:55 IST