Banks operating in Ladakh disbursed Rs 834 crore in loans during the first quarter of 2026-27, which is 29 per cent of their annual credit target. According to Kashmir Life, the Union Territory's Credit-Deposit (CD) ratio stood at 45.74 per cent, well below the 60 per cent benchmark. The figures were reviewed at the 16th Union Territory Level Bankers Committee (UTLBC) meeting, chaired by Chief Secretary Ashish Kundra, for the quarter ending June 2026.
Key points
- Banks disbursed Rs 834 crore in the first quarter, 29 per cent of the annual target.
- Ladakh's CD ratio is 45.74 per cent, against a benchmark of 60 per cent.
- The Chief Secretary asked banks to hold at least one banking camp every month in each district.
- SBI and J&K Bank were asked to expand their presence in Vibrant Villages.
Deposits and lending figures
Of the total amount disbursed, Rs 373 crore was given under Priority Sector Advances, which is 26 per cent of the annual target for that category. The rest was lent under non-priority sectors.
Total bank deposits in Ladakh were Rs 11,630.35 crore at the end of June 2026, an annual growth of 12.32 per cent. Credit outstanding rose by 10.48 per cent to Rs 5,319.22 crore over the same period.
The gap between deposits and lending was a key topic at the meeting. NABARD General Manager Vikas Mittal told participants that the benchmark CD ratio is 60 per cent. RBI Regional Director Prabhakar Jha said that loans sanctioned by bank head offices outside Ladakh to borrowers in the Union Territory should also be counted when Ladakh's CD ratio is calculated.
Directions to banks
To improve the flow of credit, Mr Kundra asked banks to organise at least one banking camp every month in each district, working with the Department of Industries and Commerce. The camps are meant to increase institutional lending, improve the CD ratio and extend government-sponsored financial help to eligible beneficiaries.
He said the camps should cover agriculture, micro, small and medium enterprises (MSMEs), renewable energy, education, housing and other priority sectors, so that prospective borrowers can get assistance in one place. The performance of the camps will be reviewed in later UTLBC meetings, together with the departments concerned, to find bottlenecks and ensure follow-up on loan applications.
He also asked the State Bank of India and Jammu and Kashmir Bank to strengthen their presence in the Vibrant Villages through new branches, banking outlets, Business Correspondents and ATMs, especially in remote and border areas.
Simpler applications and Mission Yuva
To make borrowing easier, the Convenor Bank was asked to prepare a common, bank-wise loan application form covering various government-sponsored schemes. The format is intended to simplify applications, improve outreach and help loan cases get disposed of on time.
Administrative Secretary Himanshu Gupta told the meeting that trading and service-sector activities, including Pashmina-related enterprises up to a specified limit, could also be brought under the Mission Yuva scheme.
The meeting was attended by senior officials of the Ladakh Administration, representatives of the RBI, NABARD, SBI, J&K Bank and other financial institutions, and district-level officers from Leh and Kargil. Representatives also joined from Sham, Changthang, Nubra and Zanskar.
