Guwahati: Union Minister Jyotiraditya M. Scindia has called on banks to step up lending across the Northeast, highlighting a significant gap between deposits and credit disbursal in a region that he said was registering annual economic growth of 9–11%.

Speaking at the North East Bankers’ Conclave 3.0 at Mizoram University in Aizawl on Tuesday, the Union Minister for Development of North Eastern Region and Communications said banks extended only Rs 47 in credit for every Rs 100 deposited in the region.

He urged financial institutions to increase lending to entrepreneurs, farmers, women and micro, small and medium enterprises (MSMEs), arguing that wider access to banking services must translate into economic opportunities.

Scindia also called for a credit-risk framework tailored to the Northeast, pointing to community-based landownership patterns that can make conventional collateral requirements a barrier to accessing institutional finance.

Mizoram Chief Minister Lalduhoma, state minister Lalnilawma, MDoNER Secretary Srinivas Katikithala, Chief Secretary Khilli Ram Meena and North Eastern Council Secretary Satinder Kumar Bhalla attended the conclave.

Northeast’s banking network expands

Reviewing progress since the first North East Bankers’ Conclave, Scindia said around 73% progress had been achieved against the targets set at the inaugural meeting over five years ago.

The eight northeastern states now have 6,674 bank branches and 5,823 ATMs. Since the initiative began, 131 bank branches and 126 ATMs have been added, while 247 new India Post Payments Bank centres have been established.

Banking touchpoints now cover approximately 99.93% of villages across the region, according to the minister. Of around 9,000 villages identified for improved banking and postal coverage, 6,905 have been covered.

The government has also lowered the minimum population requirement for opening a physical bank branch from 3,000 to 2,000. Another 2,500 India Post Payments Bank access points are planned.

Digital banking has expanded alongside physical infrastructure, with the Unified Payments Interface accounting for 90.2% of non-branch transactions in the Northeast, Scindia said.

Rs 40,000 crore in investments reported

Highlighting the region’s investment potential, Scindia said projects involving approximately Rs 40,000 crore had been grounded across the eight northeastern states following the Rising North East Investors Summit in May 2025.

He also pointed to improvements in connectivity, noting that the number of airports in the region had increased from nine to 17.

In Mizoram, the Bairabi railway line has carried around 15 lakh passengers through 1,100 trips, he said.

Scindia further highlighted the Centre’s financial support to the region, including annual allocations of more than Rs 1 lakh crore through the provision of 10% of Gross Budgetary Support for the Northeast, monitored by the Ministry of Development of North Eastern Region. He also cited approximately Rs 6 lakh crore in fiscal devolution to the eight states.

State-specific banking plans on the cards

Scindia outlined a roadmap for improving financial services, including plans for 70 bank branches, Business Correspondent outlets and India Post Payments Bank access points.

Other priorities include strengthening commercial-bank presence, developing a region-specific credit-risk framework and preparing an action plan for the Northeast’s financial system.

The Department of Financial Services, NEDFi, MDoNER and state governments have worked together to identify gaps in financial services and formulate state-specific interventions.

Between April and June 2026, the MDoNER secretary held consultations with individual states, which subsequently established their own targets.

The minister said banks must align their lending strategies with local economic needs so that greater financial access supports entrepreneurship, investment and employment.

Young population seen as economic asset

Scindia said the Northeast’s population of approximately five crore, combined with its natural resources and relatively high literacy levels, offered considerable scope for economic expansion.

He cited an average literacy rate of 93% across the eight states and said Mizoram had achieved 100% literacy.

Describing the Northeast as an emerging economic market, he urged banks to look beyond conventional lending approaches and develop products suited to the region’s circumstances.

Scindia said the region’s economic growth and investment prospects presented opportunities for financial institutions, but stressed that the benefits would depend on their willingness to increase credit flow.

The conclave’s key focus was to bridge the gap between banking access and actual lending, with greater credit availability seen as essential to helping the Northeast’s businesses and communities participate more fully in economic growth.