Banks in Ladakh Surpass Credit Targets with Rs 1182 Crore Disbursed, CD Ratio at 44.73 Per Cent

SRINAGAR: Banks operating in the Union Territory of Ladakh have surpassed key financial benchmarks for the fiscal year ending March 2025, disbursing Rs 1182.31 crore in credit and achieving 128 per cent of the annual target. The data was shared during the 12th Union Territory Level Bankers’ Committee (UTLBC) meeting, chaired by Chief Secretary Pawan Kotwal in Leh.

The meeting revealed that Ladakh’s banking sector disbursed a total of Rs 2789.71 crore under both priority and non-priority sector lending, achieving 148 per cent of the combined target. Deposits across the Union Territory recorded a 12 per cent year-on-year growth, touching Rs 10,260.63 crore by the end of March 2025. Meanwhile, total credit grew by 10 per cent, reaching Rs 4589.41 crore, resulting in a Credit-Deposit (CD) Ratio of 44.73 per cent.

The Chief Secretary took note of banks with CD ratios below 40 percent—including Bank of Baroda, Jammu and Kashmir Bank, ICICI Bank, HDFC Bank, Axis Bank, YES Bank, IndusInd Bank, Bandhan Bank, and Jammu and Kashmir State Cooperative Bank, and directed them to submit monitorable action plans within 15 days to the UTLBC. The direction aims to enhance lending activity in proportion to deposits mobilised in the region.

A detailed performance presentation was delivered by Tsering Wangmo, Assistant General Manager and Convenor of UTLBC Ladakh, who outlined both achievements and areas requiring greater focus.

Under a special agenda, the committee passed a resolution acknowledging the negative impact of the April 2025 incident in Jammu and Kashmir on Ladakh’s tourism economy. To mitigate the fallout, a sectoral support committee comprising State Bank of India, Punjab National Bank, and J&K Bank was proposed to strategize financial support and recovery measures.

Dr. Kotwal also stressed the importance of improving coverage under the PM Vishwakarma Yojana, especially in traditional artisan hubs such as Bogdang, Khaltsi, and Chilling, known for stone carving, bronze utensil making, and religious inscriptions. He urged banks to expand outreach and awareness initiatives in these culturally rich regions.

The Chief Secretary further directed all banks to extend loans under the Credit Guarantee Fund Scheme without insisting on collateral, in line with Reserve Bank of India guidelines. Reinforcing this, RBI’s Regional Director for Jammu, Chandra Shekhar Azad, stated that banks must offer loans up to Rs 10 lakh without collateral to eligible applicants.

To ensure greater social security coverage, all banks were instructed to intensify enrollment under the PM Jeevan Jyoti Bima Yojana (PMJJBY) and PM Suraksha Bima Yojana (PMSBY). The banking institutions were also urged to take proactive part in the Jan Suraksha Saturation Campaign, which runs from July 1 to September 30, 2025.

The meeting was attended by Principal Secretary Sanjeev Khirwar, Administrative Secretary Vikram Singh Malik, General Manager NABARD Vikas Mittal, Deputy Commissioner Leh Romil Singh Donk, and senior officials from the Reserve Bank of India, financial institutions, and member banks.