DK ZP CEO flags lack of priority sector loans, housing finance

Mangaluru: The CEO of Dakshina Kannada zilla panchayat has expressed grave concern over poor performance of banks, especially those in the private sector, in terms of implementation of social security and priority sector loan schemes run by the central govt. Narwade Vinayak Karbhari also expressed displeasure over poor performance in disbursal of housing loans. Chairing the district-level review committee (DLRC) and banking development meeting here Tuesday, he said: "Banks should enrol all eligible priority sector beneficiaries for centrally-sponsored schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). All salary accounts of govt and private sector employees should be covered under these schemes." Banks in the district have enrolled 41,657 accounts under the PMJJBY scheme from April 1, 2025, to Dec 31, 2025, and 88,780 accounts under PMSBY during the same period. The district has disbursed Rs 644.3 crore across 65,141 loan accounts under the Mudra scheme, the CEO said, adding that some banks' performance under the schemes remains poor. "Dakshina Kannada is a hub of the manufacturing sector, having vital connectivity via port, airport, rail and national highways. Banks should implement govt schemes to boost trading activities and increase disbursement of loans under the Mudra Scheme," he added. Disbursement under the priority sector housing category stood at Rs 285 crore against a target of Rs 503 crore, achieving only 56.6% of the target in the district, he said, expressing unhappiness over the poor showing in housing loan disbursement. Lead Bank manager Kavitha Shetty said total business in Dakshina Kannada as of Dec 31, 2025, stood at Rs 1.4 lakh crore, registering a year-on-year growth of 8.5%.Decline In CD Ratio Meanwhile, RBI AGM Arun Kumar expressed concern over the decline in the credit-deposit (CD) ratio in rural areas of the district. He said the CD ratio had fallen to 69% from 73.8% as on Dec 31, 2024.