Tripura’s bank credit performance under ACP 2025–26 shows mixed progress, with 72 percent achievement overshadowed by sectoral gaps, weak agricultural lending, and uneven bank performance, raising concerns over credit efficiency, policy execution, and inclusive economic growth.
A recent assessment of banking activity in Tripura has revealed a complex picture of moderate progress overshadowed by structural weaknesses, raising concerns over the effectiveness of credit delivery mechanisms in the state’s economy. The 154th quarterly review of the State Level Bankers Committee (SLBC), released by Punjab National Bank, underscores inconsistencies in meeting Annual Credit Plan (ACP) targets for the financial year 2025–26.
Between April and December 2025, banks operating across Tripura collectively disbursed ₹12,281.52 crore against an annual target of ₹17,000 crore, achieving approximately 72 percent of the set goal. While this overall figure may suggest reasonable progress, a deeper breakdown indicates a fragmented performance across institutions.
Out of the 31 banks functioning in the state, only 16 were able to meet or surpass the state average achievement rate of 72 percent. The remaining banks fell short, including prominent institutions such as Canara Bank, ICICI Bank, HDFC Bank, and Tripura Gramin Bank. Notably, 15 banks failed to reach even 75 percent of their proportionate targets, pointing toward gaps in planning and execution.
Sector-wise data further highlights disparities in credit distribution. Under the priority sector, which includes agriculture, MSMEs, and other essential segments, banks disbursed ₹7,284 crore out of a potential ₹11,240 crore, achieving just 65 percent. This marks a slight decline from the previous year’s performance of 66 percent, despite a 15 percent increase in absolute disbursement.
The agriculture sector continues to be a major area of concern. Against a target of ₹4,000 crore, banks disbursed only ₹2,323.78 crore, translating to a 58 percent achievement rate. Performance varied significantly across different categories of banks. Public sector banks recorded 58 percent achievement, private sector banks lagged at 52 percent, regional rural banks reached 55 percent, while cooperative banks performed relatively better at 72 percent.
The Micro, Small, and Medium Enterprises (MSME) sector also experienced a decline in efficiency. Banks managed to achieve 79 percent of their target, disbursing ₹3,975.39 crore against ₹5,040 crore. This represents a drop compared to the previous year’s corresponding period. Meanwhile, the “Other Priority Sector” segment reported a noticeable contraction, especially among private banks and Tripura Gramin Bank, which together recorded a year-on-year reduction of ₹256 crore.
Despite the increase in total disbursement volumes, the marginal decline in achievement percentages indicates inefficiencies in credit targeting and outreach. Analysts point to uneven institutional performance as a key factor behind this trend, suggesting that certain banks are struggling to align their operations with regional economic needs.
Experts emphasize that the inconsistency in credit delivery could hinder economic momentum in a predominantly rural and agrarian state like Tripura. They argue that improving monitoring frameworks, strengthening inter-bank coordination, and implementing targeted policy measures will be essential to ensure balanced and inclusive financial growth.
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The findings serve as a reminder that while headline figures may indicate progress, the underlying distribution of credit and institutional accountability play a critical role in sustaining long-term economic development.
