THIRUVANANTHAPURAM: The National Bank for Agriculture and Rural Development (NABARD) has upgraded Kerala Bank from C to B category based on the inspection for 2023-24. Announcing this on Thursday, Cooperation Minister V N Vasavan said the bank’s outstanding loans would touch Rs 52,000 crore by March. Of this, Rs 18,000 crore was disbursed in the current financial year, Rs 2,000 crore more than the previous financial year.
He said the bank was taking steps to reduce NPA below 7% by the end of 2024-25. This will help the bank secure NRI banking licence and internet, third party licences from the Reserve Bank of India. At present, the bank is offering mobile app-based opening and renewal of fixed deposits.
The Kerala Bank is making good interventions in the agriculture sector, Vasavan said. 25% of the total loans was allotted to the agriculture sector. This will become 33% in 2025-26. The bank has expressed willingness to the government to fully implement the PRS loans to paddy farmers.