Banks should emerge as state’s devpt partner: CM

Thiruvananthapuram: Chief minister V D Satheesan on Monday urged the banking sector to emerge as a key development partner in Kerala’s efforts to achieve economic transformation, stressing the need for closer collaboration between banks and the govt to drive investment, entrepreneurship and job creation.

Addressing the state-level bankers’ committee (SLBC) review meeting in Thiruvananthapuram, the CM said Kerala’s banking sector had recorded strong performance during the last financial year, with total banking business in the state crossing Rs 18 lakh crore. Deposits rose to Rs 10.62 lakh crore, while credit disbursement reached Rs 7.74 lakh crore.

He said banks had exceeded the targets set under the annual credit plan and maintained strong credit flow to the agriculture and MSME sectors. However, Satheesan expressed concern over the declining credit-deposit ratio and urged banks to play a more proactive role in lending and economic development.

The CM said the govt’s vision of ‘Puthuyuga Keralam’ seeks to combine economic growth with social justice, technological advancement and human development. Satheesan said the govt aims to facilitate the establishment of 10,000 new micro, small and medium enterprises in the state by providing low-interest financial assistance and technical support. A scheme offering loans of up to Rs 5 lakh for young entrepreneurs would also be launched.

He announced that Kerala would establish a dedicated department for senior citizens, the first of its kind in India. The initiative would focus on promoting a ‘silver economy’ by utilizing the experience and skills of elderly citizens in economic activities rather than limiting interventions to welfare measures alone.

Referring to the contribution of non-resident Keralites, the CM said remittances continue to play a critical role in Kerala’s economy. He said changing trends in the Gulf region and the phenomenon of reverse remittance require detailed study. Banks should develop innovative financial products modelled on the experience of the Cochin International Airport Ltd (Cial) to channel expatriate investments into infrastructure development and tourism projects, he said.

Satheesan also stressed the importance of green financing, saying banks should play a leading role 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 govt 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 CM said.