Thiruvananthapuram: Chief Minister V D Satheesan on Monday called upon the banking sector to step forward as a key development partner in Kerala's journey towards economic transformation. He emphasized the need for stronger collaboration between banks and the state government to foster investment, entrepreneurship, and job creation.
Strong Banking Performance in Last Financial Year
Addressing the state-level bankers' committee (SLBC) review meeting in Thiruvananthapuram, the Chief Minister noted that Kerala's banking sector had recorded robust performance in the last financial year. Total banking business in the state crossed Rs 18 lakh crore, with deposits rising to Rs 10.62 lakh crore and credit disbursement reaching Rs 7.74 lakh crore.
Exceeding Targets and Supporting Key Sectors
Banks surpassed the targets set under the annual credit plan and maintained strong credit flow to agriculture and the micro, small, and medium enterprises (MSME) sector. However, Satheesan expressed concern over the declining credit-deposit ratio and urged banks to take a more proactive role in lending and economic development.
Puthuyuga Keralam Vision
The Chief Minister said the government's vision of 'Puthuyuga Keralam' aims to combine economic growth with social justice, technological advancement, and human development. He announced plans to facilitate the establishment of 10,000 new MSMEs by providing low-interest financial assistance and technical support. A scheme offering loans of up to Rs 5 lakh for young entrepreneurs will also be launched.
First-of-its-Kind Senior Citizens Department
Satheesan announced that Kerala will establish a dedicated department for senior citizens, the first such initiative in India. This department will focus on promoting a 'silver economy' by leveraging the experience and skills of elderly citizens in economic activities, rather than limiting interventions to welfare measures alone.
Role of Non-Resident Keralites and Green Financing
Referring to the contribution of non-resident Keralites, the Chief Minister said remittances continue to play a critical role in Kerala's economy. He noted that changing trends in the Gulf region and the phenomenon of reverse remittance require detailed study. Banks should develop innovative financial products, modeled on the experience of Cochin International Airport Ltd (CIAL), to channel expatriate investments into infrastructure development and tourism projects.
Satheesan also stressed the importance of green financing, urging banks to lead in supporting renewable energy projects and electric mobility initiatives as part of efforts to address climate change. "This is the time for banks and the government to work together to convert savings into investments, investments into enterprises, and enterprises into employment opportunities, thereby improving the quality of life of every citizen in Kerala," the Chief Minister said.
