Dakshina Kannada Zilla Panchayat Chief Executive Officer Narwade Vinayak Karbhari on June 30 cajoled banks to improve lending to housing and non-priority sector as banks get good returns from these two sectors.

Chairing the district-level bankers’ committee meeting in Mangaluru on June 30, Mr. Karbhari noted that among the priority sector, banks have achieved 79.73% target by disbursing ₹535.12 crore against the target of ₹671.13 crore in financial year 2025-26. The total disbursement, priority as well as non-priority by banks in the district during the year had been ₹49,231.36 crore against the target of ₹64,506.99 crore (76.32% achievement).

The CEO commended the banks for achieving targets in the priority sector lending, including agriculture (₹14,798.67 crore against target of ₹13,337.14 crore, 110.96% achievement), and MSME (₹8,605.61 crore against ₹7,683.86 crore target, 109.43% achievement). Banks could have done better in priority education sector lending (₹188.25 crore against ₹218.96 crore, 85.97%). He appreciated that the total priority sector lending during the year had been ₹26,272.19 crore as against the target of ₹23,170.82 crore (113.38% achievement).

Expressing concern over a decrease in credit to deposit ratio, from 72.83% in 2024-25 to 69.4% in 2025-26, Mr. Karbhari told the banks that it was their duty to lend for the improvement of the region from where they get deposits.

Reserve Bank of India Assistant General Manager P Arun Kumar said Kotak Mahindra Bank that had opened two rural branches and collected over ₹3 crore deposits, did not lend a single rupee in those rural areas. ICICI Bank with two branches and collecting over ₹140 crore deposits from rural areas, had lent Just over ₹80 lakh in those regions. These discrepancies should not exist and there should be a balance between urban and rural lending, the AGM said.

Regarding the CD ratio, Mr. Kumar said the RBI has fixed 60% as the desirable level to maintain uniformity across Karnataka.

Under PM Vishwakarma scheme, 3,692 applications were approved by banks from 5,224 applications while 1,450 were rejected, Joint Director Industries and Commerce Gokuldar Nayak said.

Mr. Narwade asked banks to process pending applications on priority.

Total business in Dakshina Kannada district

District Lead (Canara) Bank Manager Geetha Yashodhar said total business in Dakshina Kannada district as on March 31, 2026, was ₹1,45,470.3 crore with a year-on-year growth of 9.29%. While banks received deposits of ₹85,873.5 crore with 12.48% Y-o-Y growth, the advances stood at ₹59,596.8 crore, a growth of 7.19%.