The National Bank for Agriculture and Rural Development (NABARD) has upgraded the Kerala State Cooperative Bank, also known as Kerala Bank, from ‘C’ to ‘B’ category after the recent financial review. This shows that there is an enhancement in the financial soundness and operational capability of the bank. Cooperation Minister V.N. Vasavan said that the total loans of Kerala Bank are expected to touch ₹52,000 crore by March end and ₹18,000 crore has been disbursed in the current financial year, which is ₹2,000 crore more than that in the corresponding period last year. As for the NPA, the bank expects to maintain it less than 7% by the end of 2024-25. As of now, the NPA is at 11.45%, and NABARD has applauded the bank for improving its asset quality. It is expected that the NABARD rating will help Kerala Bank to get NRI banking license along with internet and third party banking permission from the RBI. Currently, the bank offers online fixed deposit management through its mobile application. Kerala Bank has also played a significant role in funding agriculture, where it has extended 25 percent of the total loans to the sector and plans to enhance it to 33 percent in 2025-26. It plans to introduce Production and Requirement Support (PRS) loans for paddy farmers and, in the process, strengthen Kerala’s agricultural economy. With the support of NABARD, Kerala Bank is well positioned to improve its product portfolio and become a significant player in the growth of the state’s economy. These initiatives clearly show that the bank is on the right track in its efforts to expand its services and make them more convenient for the customers.
Kerala Bank's Rating updated to 'B' Grade
