Mizoram Chief Minister Lalduhoma on October 13 urged banks and financial institutions to expand lending across the state, setting a target of raising Mizoram’s credit-deposit (CD) ratio to at least 67 per cent by 2028–29.
Addressing the third edition of the North East Bankers’ Conclave at Mizoram University in Aizawl, Lalduhoma said the state recorded a CD ratio of 55.83 per cent in 2025–26, highlighting the scope for greater institutional lending to support businesses and economic growth.
He noted that seven banks operating in Mizoram had recorded CD ratios below 40 per cent as of June 2026. By comparison, Assam registered a CD ratio of 73.52 per cent, while Nagaland and Tripura recorded 61.1 per cent and 61 per cent, respectively.
“Our government has set a target of raising Mizoram’s CD ratio to at least 67 per cent by 2028-29. Achieving this will require the commitment of every bank and financial institution operating in the state,” the Chief Minister said.
Lalduhoma urged banks to establish clear, time-bound lending targets for individual districts and expand their outreach beyond Aizawl. He stressed that improved access to formal credit was essential to help entrepreneurs and businesses convert the state’s economic potential into productive ventures.
Concerns Over Credit Plan Performance
Reviewing the annual credit plan for 2025–26, the Chief Minister expressed concern over low target achievement in key sectors. He said the reported achievement stood at 8.56 per cent in agriculture, 49.53 per cent in micro, small and medium enterprises (MSMEs), and 13.52 per cent in the other private sector.
While agriculture and the other private sector registered slight year-on-year improvements, performance in the MSME sector declined, he said.
Highlighting the importance of agriculture, MSMEs and private enterprise in broad-based development, Lalduhoma said lending should be assessed not only by the amount of money disbursed but also by its impact on productive activity, employment generation and livelihoods.
He called on financial institutions to move beyond conventional lending practices and work closely with entrepreneurs to develop viable, bankable projects tailored to Mizoram’s economic needs.
“The potential is here. The entrepreneur is pretty serious here. Our task is to bridge the gap between that potential and the financial resources needed to realise it,” he said.
The Chief Minister also assured banks that the state government was willing to work with them to address practical difficulties and policy-related obstacles affecting credit disbursement.
Government Initiatives to Strengthen Banking Coordination
Lalduhoma highlighted initiatives aimed at improving coordination between the state government and financial institutions, including the flagship Bana Kaih, or handholding, scheme.
The scheme is being implemented in partnership with five banks: State Bank of India, Mizoram Rural Bank, Mizoram Cooperative Apex Bank, Union Bank of India and IDBI Bank.
He also said the government signed agreements with eight banks on September 7 under the One Department, One Bank (ODOB) initiative. The programme seeks to improve coordination between government departments and their partner banks while making financial management more efficient.
On digital financial management, Lalduhoma said Mizoram had onboarded all centrally sponsored schemes notified for implementation through the SNS-SPARS platform. The state’s integrated Financial Management Information System (ifMIS) has also been integrated with the Reserve Bank of India’s E-Kuber system and the Public Financial Management System (PFMS).
The government is working towards phasing out cheque-based transactions, with the Chief Minister expressing hope that the transition could be completed within a year.
Call for Greater CSR Investment in the Northeast
The Chief Minister also called for increased corporate social responsibility (CSR) investment in the Northeast, noting that annual CSR spending in India exceeds ₹34,000 crore but has historically been concentrated in industrialised states.
He said the region’s strategic location, international borders, rich biodiversity and young population offered significant opportunities for socio-economic development and warranted greater corporate engagement.
Lalduhoma identified tourism and hospitality, healthcare, education, vocational and skill training, agro-horticultural processing, handloom and handicrafts, bamboo-based industries, manufacturing, services, trade, commerce, warehousing and logistics as sectors with considerable potential for credit expansion.
He urged banks to collaborate with local entrepreneurs to identify viable projects and provide the financial support required to establish and expand businesses across these sectors.
The Chief Minister’s message at the conclave focused on increasing institutional credit to productive sectors, strengthening district-level lending and improving cooperation between the government and banks. The target of achieving a 67 per cent CD ratio by 2028–29 is intended to widen access to formal finance and support employment and livelihood opportunities across Mizoram.