Guwahati, Oct 14: Union Minister for Development of North Eastern Region and Communications Jyotiraditya M. Scindia on Tuesday urged banks to increase lending to businesses, farmers, women and micro, small and medium enterprises (MSMEs) in the Northeast, pointing out that only ₹47 is extended as credit for every ₹100 deposited in banks across the region.
Addressing the North East Bankers’ Conclave 3.0 at Mizoram University in Aizawl, Scindia called for greater credit availability, expansion of banking infrastructure and a region-specific credit-risk framework to translate financial inclusion into economic growth.
He said the Northeast was recording annual economic growth of 9–11%, making it an emerging market for banks, and stressed the need to ensure that wealth generated in the region remained within the region.
Mizoram Chief Minister Lalduhoma, state minister Prof. Lalnilawma, MDoNER Secretary Srinivas Katikithala, Chief Secretary Khilli Ram Meena and North Eastern Council Secretary Satinder Kumar Bhalla attended the conclave, which brought together representatives of major public-sector banks, the Reserve Bank of India and financial institutions.
Low credit-deposit ratio a key concern
Highlighting the gap between deposits and lending, Scindia said banks needed to increase credit flow to entrepreneurs, farmers, women and MSMEs.
He called for state-specific Credit-Deposit (CD) ratio targets and said the ratio should reflect its role in supporting development rather than merely measuring banking activity.
The minister also called for a Northeast-specific credit-risk framework, noting that community-based landownership patterns in the region required greater flexibility in collateral requirements to improve access to institutional finance.
He outlined three priorities for banks: expanding physical banking infrastructure, improving credit access through state-wise targets, and financing MSMEs and infrastructure projects.
131 bank branches, 126 ATMs added
Reviewing progress since the first North East Bankers’ Conclave, Scindia said around 73% progress had been achieved against the banking targets set at the inaugural conclave over the past five years.
The region has added 131 bank branches and 126 ATMs, while 247 new India Post Payments Bank (IPPB) centres have been established.
The Northeast now has 6,674 bank branches and 5,823 ATMs, with banking touchpoints covering approximately 99.93% of villages. Another 2,500 IPPB access points are planned.
Of around 9,000 villages identified for improved banking and postal coverage, 6,905 have been covered. The minimum population requirement for opening a physical bank branch has also been reduced from 3,000 to 2,000.
Digital transactions are gaining ground, with the Unified Payments Interface (UPI) accounting for 90.2% of non-branch transactions across the region, according to the minister.
₹40,000 Crore in investments grounded
Scindia said investments worth approximately ₹40,000 crore had been grounded across the eight northeastern states following the Rising North East Investors Summit held in May 2025.
He also highlighted improvements in connectivity, including the expansion of the region’s airport network from nine to 17 airports.
In Mizoram, the Bairabi railway line has carried around 15 lakh passengers through 1,100 trips, he said.
The minister further pointed to the annual allocation of more than ₹1 lakh crore to the Northeast through the provision of 10% of Gross Budgetary Support for the region, monitored by the Ministry of Development of North Eastern Region (MDoNER). He also cited approximately ₹6 lakh crore in fiscal devolution to the eight states.
Banks asked to draw state-specific roadmaps
Scindia outlined four priorities for the Department of Financial Services (DFS), including a plan for 70 bank branches, Business Correspondent outlets and IPPB access points; stronger commercial-bank presence; a Northeast-specific credit-risk framework; and a comprehensive action plan for the region’s financial system.
NEDFi, DFS, MDoNER and state governments have worked together to identify gaps in financial services and develop state-specific interventions.
Between April and June 2026, the MDoNER secretary held separate consultations with state governments, which subsequently set their own targets.
The minister urged banks to align their lending strategies with the region’s economic priorities and ensure that improved banking access translated into more investment, entrepreneurship and employment.
Young population, high literacy offer opportunities
Scindia said the Northeast, with a population of around five crore, had considerable potential to attract investment and expand economic activity.
He highlighted the region’s young population and natural resources, calling for greater opportunities in education, skill development, entrepreneurship and employment.
According to the minister, the average literacy rate across the eight northeastern states stands at 93%, while Mizoram has achieved 100% literacy.
“The Northeast has a demographic and educational bulge, an array of natural resources and extraordinary natural beauty,” he said, adding that the region’s growth potential offered significant opportunities for the banking sector.
Reflecting on his engagement with the region, Scindia said he had visited the Northeast 35 times during his approximately 32 months as DoNER minister.
He urged bankers to look beyond conventional lending models, address the region’s specific financial requirements and play a greater role in supporting its economic development.
The conclave’s central message was that expanding banking access must now be matched by stronger credit delivery, enabling businesses and communities across the Northeast to convert financial inclusion into economic opportunity.
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