Leh, May 18: Total bank advances in the Union Territory of Ladakh have reached Rs 5,121.31 crore, while total deposits have crossed Rs 11,364.33 crore as of March 2026, officials informed during the 15th Union Territory Level Bankers Committee (UTLBC) meeting chaired by Chief Secretary Ashish Kundra in Leh on Monday.
The meeting reviewed the performance of banks in Ladakh for the quarters ending December 2025 and March 2026. Officials said banks achieved 133 per cent of the annual credit target under Priority Sector Advances by disbursing Rs 1,463.87 crore. Under the overall credit performance, banks achieved 157 per cent of the target by disbursing Rs 3,558.48 crore under priority and non-priority sector advances.
It was informed that total deposits registered a year-on-year growth of 10.76 per cent, while total credit recorded an 11.59 per cent increase over the previous year. The overall Credit-Deposit (CD) Ratio of the Union Territory stood at 46.06 per cent for the quarter ended March 2026.
During the meeting, the Chief Secretary directed banks with low CD ratios, particularly private sector banks with ratios below 40 per cent, to increase lending in the Union Territory. Deputy General Manager, RBI Jammu, Vibha Gupta informed the meeting that the benchmark CD ratio is 60 per cent and noted that advances extended outside Ladakh are also reflected in Ladakh’s credit figures, affecting the overall ratio.
Expressing concern over poor loan disbursal by private banks despite low non-performing assets (NPAs) in Ladakh, Kundra warned that the government could consider withdrawing deposits from banks with weak lending records if policies were not revised.
The Chief Secretary also directed banks and departments to organise joint awareness-cum-credit camps across sectors including agriculture, MSMEs, renewable energy, education and housing to improve credit flow and financial inclusion.
Banks were further advised to strengthen banking infrastructure in remote and border areas, particularly under the Vibrant Villages programme, by opening branches, banking outlets, business correspondents and ATMs.
Kundra also asked the Convenor Bank of UTLBC Ladakh to prepare robust interest subvention modalities for MSMEs, Pashmina, and hospitality sector start-ups in convergence with schemes of the UT administration.
Administrative Secretary Bhupesh Chaudhary urged banks, especially J&K Bank, to provide collateral-free loans without insisting on tangible security or guarantors.
Administrative Secretary Rudra Goud P.T. raised concerns over higher interest rates being charged by J&K Bank on renewable energy and solar rooftop scheme advances compared to other financial institutions operating in Ladakh.
The meeting was attended by senior officials from the UT administration, Reserve Bank of India, NABARD, member banks and financial institutions.
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