Dakshina Kannada CEO Slams Banks for Poor Performance in Govt Loan Schemes
The Chief Executive Officer (CEO) of Dakshina Kannada Zilla Panchayat has voiced serious concerns regarding the inadequate performance of banks, particularly those in the private sector, in implementing central government social security and priority sector loan schemes. Narwade Vinayak Karbhari also expressed strong displeasure over the sluggish disbursal of housing loans in the district.
CEO Calls for Full Enrollment in Social Security Schemes
While chairing the district-level review committee (DLRC) and banking development meeting on Tuesday, Karbhari emphasized that banks must enroll all eligible priority sector beneficiaries for centrally-sponsored schemes. "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 government and private sector employees should be covered under these schemes," he stated.
According to data presented at the meeting, banks in Dakshina Kannada have enrolled 41,657 accounts under the PMJJBY scheme from April 1, 2025, to December 31, 2025. During the same period, 88,780 accounts were enrolled under the PMSBY scheme. The district has disbursed Rs 644.3 crore across 65,141 loan accounts under the Mudra scheme, yet Karbhari noted that some banks continue to underperform in these critical areas.
Housing Loan Disbursement Falls Short of Target
Karbhari highlighted a significant shortfall in housing loan disbursement under the priority sector category. Disbursement stood at Rs 285 crore against a target of Rs 503 crore, achieving only 56.6% of the goal. "Dakshina Kannada is a hub of the manufacturing sector, having vital connectivity via port, airport, rail, and national highways. Banks should implement government schemes to boost trading activities and increase disbursement of loans under the Mudra Scheme," he added, urging banks to leverage the district's economic potential.
Banking Performance and Economic Indicators
Lead Bank Manager Kavitha Shetty reported that the total business in Dakshina Kannada as of December 31, 2025, reached Rs 1.4 lakh crore, marking a year-on-year growth of 8.5%. However, this positive trend was overshadowed by concerns raised by RBI AGM Arun Kumar regarding the decline in the credit-deposit (CD) ratio in rural areas of the district.
Kumar expressed alarm over the CD ratio falling to 69% from 73.8% as of December 31, 2024. This decline indicates reduced lending activity relative to deposits, potentially stifling economic growth in rural regions. The meeting concluded with calls for banks to improve their outreach and efficiency in implementing government schemes to support local development and financial inclusion.
