The Hindu Business Line : C-D ratio of banks in Kerala touches 70%

Thiruvananthapuram April 24 The credit-deposit (C-D) ratio of commercial banks in Kerala touched an all-time high of 70.07 per cent in the third quarter of last fiscal ended December 31, 2006.

The performance review of the banking sector, presented at the State-Level Bankers' Committee (SLBC) meeting on Tuesday, said that the C-D ratio increased by 1.86 percentage points during the quarter; the growth is higher than that recorded in the corresponding previous period.

However, the growth of the ratio on a year-on-year basis since December 31, 2005, at 3.94 percentage points, was lower than the 9.96 percentage points recorded in the previous year.

The regional rural banks recorded the highest C-D ratio of 121.66 per cent, followed by private sector banks (69.78 per cent); State Bank group (69.18 per cent); nationalised banks (67.18 per cent) and foreign banks (50.78 per cent).

The C-D ratio of rural areas was 71.97 per cent, more than the mandatory norm of 60 per cent.

The urban areas recorded a ratio of 93.06 per cent, while the ratio of semi-urban areas was 57.33 per cent, lower than the desired level of 60 per cent.

The credit plus investment-deposit ratio recorded an increase of 1.62 percentage points during the quarter to touch 72.91 per cent, the review said.

The total deposits of the banks grew by Rs 2,800 crore during the quarter to touch Rs 85,770 crore.

During the corresponding previous period, the addition to the total deposits was only Rs 2,169 crore.

Besides, during the first three quarters of 2006-07, the increase in the deposits was Rs 8,093 crore to Rs 3,481 crore earlier.

Private sector banks registered the largest share of 34.51 per cent in the increase in total deposits, followed by the State Bank group (30.91 per cent); nationalised banks (30.73 per cent); regional rural banks (2.92 per cent) and foreign banks (0.94 per cent).

The non-resident deposits increased to Rs 32,955 crore, constituting 38.42 per cent of the total deposits of the banks in the State. Year-on-year, the deposits grew by Rs 3,314 crore as on December 31, 2006.

Total advances touched Rs 60,097 crore during the quarter, marking a growth of Rs 8,178 crore over Rs 51,919 crore earlier.

The private sector banks accounted for the highest share of 32.29 per cent in total advances, followed by the State Bank group (32.24 per cent); nationalised banks (30.29 per cent); regional rural banks (4.73 per cent) and foreign banks (0.44 per cent).

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