Srinagar: Jammu and Kashmir’s banking sector recorded 9.85 percent year-on-year growth in total banking business during the financial year ended March 2026, with deposits and advances both growing by nearly 10 percent. However, J&K’s credit-deposit (CD) ratio remained almost unchanged during the year, increasing by just 0.01 percentage point from 61.14 percent as on March 31, 2025, to 61.15 percent as on March 31, 2026. During a review meeting chaired by the Chief Secretary, Atal Dulloo, concern was raised about the low CD ratio.
“Banks were asked to work together to raise it from the current level of around 61 percent to the national average of approximately 81 percent,” officials said.
The sources said banks have also been directed to prepare a clear roadmap with well-defined strategies and interventions for progressively improving the CD ratio.According to the figures presented during the review, aggregate deposits with banks operating in J&K increased by 9.84 percent, from Rs 1,96,968 crore as on March 31, 2025, to Rs 2,16,352 crore as on March 31, 2026.
Advances grew by 9.86 percent during the same period, rising from Rs 1,20,424 crore to Rs 1,32,296 crore.
The sources said the review also examined the banking infrastructure in J&K, with the General Manager, J&K UTLBC, informing participants that 37 banks were currently operating through 11,703 banking touchpoints. These include 2222 brick-and-mortar branches and 9481 banking correspondents.
The banking network has expanded significantly in terms of population coverage. As of March 2026, one banking outlet, including a branch or banking correspondent, was available for every 1048 people, compared with 2546 persons per banking outlet as of March 2021.
The review also noted that the geographical area covered by each banking delivery point has been declining year after year.
As of March 2026, one banking outlet was available for every 3.61 sq km.
According to sources, RBI Regional Director encouraged banks to open more brick-and-mortar branches, particularly in rural areas, to provide greater confidence and accessibility to customers.
The Chief Secretary, sources said, emphasised the need to strengthen banking outreach in rural and far-flung areas by expanding the branch network and directed banks to prepare a time-bound plan for establishing new branches over the next one year. The review also assessed credit disbursement under the Annual Credit Plan (ACP) for 2025-26.
Sources said banks in J&K provided aggregate credit of Rs 84,384.12 crore to 19.37 lakh beneficiaries in priority as well as non-priority sectors during the financial year ended March 2026.
Against the ACP target of Rs 77,974.29 crore for 19.90 lakh beneficiaries, banks achieved 108 percent of the target in financial terms and 97 percent in physical terms. (GK)
