Union Minister says banks extend just Rs 47 in credit for every Rs 100 deposited, despite the region’s 9–11% annual economic growth.
Aizwal: Union Minister Jyotiraditya M. Scindia has urged banks to increase lending across the Northeast, flagging a gap between deposits and credit disbursal despite the region’s reported annual economic growth of 9–11%.
Speaking at the North East Bankers’ Conclave 3.0 at Mizoram University in Aizawl on Tuesday, Scindia said banks extended only Rs 47 in credit for every Rs 100 deposited in the region. He called for greater lending to entrepreneurs, farmers, women and micro, small and medium enterprises (MSMEs).
Scindia also advocated a credit-risk framework tailored to the Northeast, citing community-based landownership patterns that can make conventional collateral requirements an obstacle to institutional finance.
Reviewing banking expansion, he said the eight northeastern states now have 6,674 bank branches and 5,823 ATMs, while banking touchpoints cover approximately 99.93% of villages. UPI accounts for 90.2% of non-branch transactions in the region.
Scindia also said investment projects worth around Rs 40,000 crore had been grounded across the Northeast following the Rising North East Investors Summit in May 2025. He highlighted improved connectivity and government financial support as further drivers of growth.
The conclave focused on improving credit access, strengthening financial infrastructure and developing state-specific plans to ensure banking services translate into entrepreneurship, investment and employment.
Also Read: CJP Leaders Saurav Das, Ashutosh Ranka Sent to Five-Day Judicial Custody
