Great leap in loan outstanding: Kerala Bank's loan book crosses ₹50000 crore
Great leap in loan outstanding: Kerala Bank's loan book crosses ₹50000 crore

The loan outstanding of Kerala Bank, which came into existence on November 29, 2019, has for the first time crossed ₹ 50000 crore mark, as on December 31, 2024.
Announcing this at a press conference at Kerala Bank headoffice in Thiruvananthapuram on 15.01.2025, Kerala Minister for Cooperation, Devaswom and Ports, Sri.V.N.Vasavan said that out of the total 45 Banks functioning in the State, Kerala Bank has become one among the five Banks, whose loan outstanding have soared above ₹50000 crore. Among the Kerala-based Banks, Kerala Bank is in the second position in terms of loan outstanding. As per latest State Level Banking Committee (SLBC) reports, 8.42 per cent of the total loans disbursed in Kerala is through the Kerala Bank.
The Minister said that the total loans of the Bank at the time of formation was ₹37766 crore. Now the Bank achieved this feat by lending loans to the tune of Rs. 50000 crore to customers including individuals and Primary Agricultural Credit Societies ( PACS).The significant fact of these loans is that these loans are given by collecting deposits from the State and lending them here itself, unlike other banks in the State. This has lead to further strengthening of economy of the State. Currently the Credit-Deposit ( CD) ratio of Kerala Bank is 75 %. This per cent is higher when compared with that of other banks in the State.
Kerala Bank is the first Bank among the 33 State Cooperative Banks in the country to have passed the ₹50000 crore loan outstanding. Taking into consideration the total deposits of State Cooperative Banks in the country, Kerala Bank's contribution comes to 30 per cent, while in the case of loans, it comes to 19 per cent.
The Bank has disbursed 25 per cent of total loans to Agricultural sector and another 25 per cent to PACS. The loans disbursed by the Bank have been instrumental in the growth of Kerala's rural economy, progress of agriculture as well as Micro, Small and Medium Entreprises ( MSME) sectors. The Bank has disbursed 12.30 per cent of total loans to MSME sector, which has generate employment to thousands of people.
Out of the total ₹16000 crore newly sanctioned loans this fiscal, a total of ₹ 3000 crore has been sanctioned to PACS. The outstanding in terms of gold loan sanctioned by the Bank stands at ₹6024 crore. Out of these, ₹2577 crore is Agricultural gold loan.

The Bank brought a unification in its interest rate in November, in accordance with RBI guidelines, resulting in same rate being extended to both individuals and PACS. Currently Kerala Bank give the highest rate of interests to deposits. Senior citizens can avail upto 8.75 %. This fiscal, deposits increased ₹ 1600 crore.
Out of the 100 Farmer Producer Organisations ( FPOs) envisaged to be started under the supervision of Kerala Bank with an aim for betterment of farmers and to bring about overall development in agricultural sector, 29 FPOs have already started functioning in various districts.
A total of 56 projects have been completed and commissioned under the AIF loan scheme, which gives loans to PACS at 1 % interest rates for starting Agri-based industries/ services. ₹ 203 crore has been sanctioned so far for this.
Kerala Bank and MILMA signed a Memorandum of Understanding ( MoU) upholding the principle of `Cooperation among Cooperatives’. As per this MoU, it was decided to disburse up to ₹ 3 lakh under `Ksheeramithra’ loan scheme to dairy farmers, and, up to ₹ 1 lakh under franchisee cash credit schemes to MILMA dealers. This will benefit more than 10.6 lakh dairy farmers and more than 30000 dealers as loans will be disbursed to them through the 823 branches of Kerala Bank.
Kerala Bank, which is capable of exerting great influence in the rural, agricultural and entrepreneur sectors of Kerala, seeks the support of cooperators and all sections of people at this juncture when it is growing from strength to strength.
Kerala Bank President, Sri. Gopi Kottamurickal, Board of Management Chairman, Sri.V.Reveendran, Director, Adv.S.Shajahan, Board of Management member, Sri.B.P.Pillai and Chief Executive Officer, Sri.Jorty M.Chacko were among those present at the press conference.