J&K banks disburse Rs 63,892 crore credit to 14.56 lakh customers in  FY26 (Q1–Q3)

Ziraat Times Team Report 

Srinagar, April 6: Banks in Jammu & Kashmir disbursed a total credit of Rs 63,892 crore to 14.56 lakh beneficiaries during the first three quarters of the financial year 2025–26, ending December 2025, officials informed at the 18th meeting of the Union Territory Level Bankers’ Committee (UTLBC) held in Jammu on Monday.

The meeting, chaired by Chief Secretary Atul Dulloo, reviewed the performance of banks and line departments for the period and assessed progress under key financial and development indicators.

Terming Priority Sector Lending (PSL) as critical for economic and infrastructure development, the Chief Secretary stressed that there should be no shortfall in achieving targets under the sector. He noted that some banks, particularly private lenders, were not showing adequate inclination towards lending in priority areas, especially agriculture.

He called for 100 percent credit linkage in the housing and education sectors, observing that growth in these segments has not met expectations. Expressing concern over the performance under the interest subsidy scheme of Pradhan Mantri Awaas Yojana (PMAY) 2.0, Dulloo urged banks to leverage Common Service Centres to expand beneficiary coverage.

Highlighting financial inclusion as a key government priority, he stressed the need to establish banking touchpoints in unbanked Gram Panchayats. He took strong exception to delays by some banks in extending services to uncovered areas and called for better coordination with local administration.

The Chief Secretary also lauded J&K Bank’s performance in providing credit to Farmer Producer Organisations (FPOs) and emphasised the need for greater awareness to strengthen the FPO ecosystem.

Raising concerns over deficiencies in the Re-KYC process, he directed banks to intensify compliance efforts. He further advised banks to improve lending under government-sponsored employment schemes and emphasised the issuance of smart cards to Kisan Credit Card (KCC) holders.

Dulloo underscored that government schemes are designed to generate employment and called on banks and implementing agencies to work in tandem to support aspiring entrepreneurs.

He also flagged low Credit-Deposit (CD) ratios in some districts as a “worrisome” trend and called for the constitution of an expert committee to recommend corrective measures.

Earlier, MD & CEO of J&K Bank and Convenor UTLBC Amitava Chatterjee, in his welcome address, reiterated the banking sector’s commitment to financial empowerment and inclusive growth in the Union Territory.

The meeting was attended by senior officials from the UT administration, Reserve Bank of India (RBI), NABARD, banks, insurance companies and other financial institutions.

The session concluded with a vote of thanks by Chief General Manager, J&K UTLBC.