Ladakh Chief Secretary urges banks to increase lending to critical sectors

Ladakh Chief Secretary Pawan Kotwal presided over the 13th Union Territory Level Bankers Committee (UTLBC) meeting held in Leh. The meeting focused on the performance of banks in the UT for the quarter ending June 2025.

A statement said the meeting highlighted that priority sector advances in UT Ladakh achieved 39% of the annual credit target, disbursing Rs 3,447.5 crore. Under the non-priority sector, banks achieved 40% of the target, disbursing Rs 3,128.6 crore.

Officials said deposit growth showed a positive trend, with total deposits growing by 13% year-on-year, reaching Rs 10,354.42 crore as of June 2025. Credit growth also showed improvement, with total advances growing by 8% year-on-year, reaching Rs 4,148.00 crore during the same period. The credit-deposit ratio stood at 41.60%.

“The meeting also focused on the Credit Guarantee Fund Scheme (CGFS), which allows banks to extend loans without collateral to eligible borrowers in Ladakh. The Regional Director of the Reserve Bank of India (RBI), Jammu, emphasised the importance of this scheme to promote financial inclusion and support economic activities in remote areas,” the statement said.

According to the statement, a comprehensive presentation on the performance and key achievements of the banks was delivered by Tsering Wangmo, Chief Manager, State Bank of India. The presentation included credit flow to the priority sector, credit-deposit ratios and progress on financial inclusion.

Kotwal appreciated the performance of banks and stressed the importance of lending in critical sectors such as agriculture, small businesses, and tourism. He highlighted the need for increased disbursements under schemes like PMEGP, Stand-Up India, MUDRA, and others. He also called for better coordination between banks and government departments to facilitate timely credit delivery, particularly in remote areas.

The Director of the Department of Financial Services (DFS), Government of India, emphasised the importance of improving credit flow in the region and suggested more proactive engagement with the tourism sector, given its importance to Ladakh’s economy.