Credit-deposit ratio drops by 12% in Odisha

Odisha Sun Times Bureau
Bhubaneswar, May 23:

The credit-deposit ratio of the banking sector in Odisha has recorded a 12.12 percent decline within a year.

This was revealed at the 139^th State Level Bankers’ Committee (SLBC) meet held here on Friday.

In March 2014 the credit-deposit ratio was 85.31 percent which has slid down to 73.19 percent in March 2015.

Another worrying factor is that lending by banks has not been in proportion to their collection of deposits in the state. While there has been more than 15 percent surge in deposit mobilization compared to that of last year, extension of loans by banks has dropped by Rs 1112 crore.

Expressing deep concern over the matter Finance Minister Pradip Kumar Amat urged banks to bring improvement in the credit-deposit ratio.

Amat asked banks to pay special attention to make more than 53 lakh newly opened zero balance bank accounts under the Jan Dhan yojana in the past few months operational by ensuring regular transactions.

Amat said most people in rural areas lack basic knowledge about loan sanction process. The banking sector, he said, should make all out efforts to improve the financial literacy of the people in grassroots level.

According to statistics made available at the SLBC meet bank branches in semi-urban areas had a very low credit-deposit ratio of 41.88 percent against the set target of 60 percent. Similarly, while branches in urban areas recorded 52.19 percent credit-deposit ratio, rural branches had a credit-deposit ratio of 64.43 percent.

In the last one year deposits in banks in the state have increased by Rs 26, 589 crore (15.67 percent). By March 2014 deposits stood at Rs 1, 69,642 crore , by the same period in 2015 it has increased to Rs 1,96,232 crore.

While banks operating in the state had extended advances to the tune of Rs 1, 44,726 crore during the last financial year (2013-14), they have provided advances to the tune of Rs 1, 43,614 crore by March 2015 which is less by Rs 1112.71 crore against the previous year.

Total number of bank branches in the state has increased to 4,672 from 4300 within a year with the opening of 372 new branches in the state from March 2014 to March 2015.

While 53.61 lakh bank accounts have been opened in the state under the Prime Minister Jan Dhan Yojana deposits worth Rs 411.60 crore have been mobilized. The target of at least one bank account in each family has been achieved in the state.

While 21.30 lakh customers have joined the Prdhan Mantri  Surakshya Bima Yojana, 3.20 lakh customers have joined the Pradhan Mantri Jeevan Jyoti Bima Yojana.

Advances to the Priority sector have recorded an increase of 10.12 percent with additional disbursement of loans worth Rs 5321.60 crore.

In comparison to last fiscal loans to the agricultural sector has recorded a hike of 29.38 percent.

Record 67 percent bank accounts in the state have been tagged with Aadhar Nos. Similarly, 82.08 percent LPG customers are getting LPG subsidy in the bank accounts.

Development Commissioner UC Behera expressed concern over Non Performing Assets (NPA) of banks and on opening of less number of branches by banks in no branch panchayats of the state. He stressed for bringing in improvement in recovery of loans by banks.