The Hindu Business Line : Kerala bank deposit base grows by Rs 879 cr in Q1

Thiruvananthapuram, Oct. 4 The deposit base of commercial banks in Kerala has grown by Rs 879 crore to reach Rs 92,576 crore in the first quarter of the current fiscal.

However, this was lower than the Rs 1,999-crore growth recorded in the corresponding period last year, according to the figures made available at the review meeting of the State Level Bankers’ Committee (SLBC) here on Thursday.

NRI deposits

The non-resident deposits segment showed a noticeable fall during the quarter with the banks losing Rs 1,309 crore as against an addition of Rs 2,633 crore during the whole of the previous year. The NRI deposits stood at Rs 31,995 crore as at the end of June 2007.

In the event, the share of domestic deposits in the total deposits reached 65.44 per cent, while that of NRI deposits came down to 34.56 per cent. In fact, the domestic base has been steadily increasing over the last few years as is evident from the fact that the ratio stood at 52.51 per cent in 2001-02.

In domestic deposits, the State Bank group accounted for 33 per cent, though it has only 22.42 per cent share in the State’s branch network. Private sector banks, with 32.79 per cent of the network, followed with 31.86 per cent of the deposits, while the nationalised banks with the highest percentage of branch network (34.54 per cent) had 31.78 per cent share in the total deposits. The regional rural banks (RRBs), in spite of having 10.13 per cent of the branch network, could manage only 2.78 per cent of the total deposits.

On the other side, the total outstanding advances of the commercial banks grew at a lower rate with Rs. 40 crore added in the first quarter to reach Rs. 63,313 crore. The State Bank group contributed the largest share of 39.03 per cent towards the growth in total advances whereas the nationalised banks and private sector banks recorded negative growth.

C-D RATIO

The credit-deposit ratio of the banks decreased slightly by 0.62 percentage points during the quarter to a level of 69.47 per cent, despite a robust growth in deposits. During the previous year, the CD ratio had grown by 3.25 percentage points.

The credit + investment ratio of the banks also showed a fall of 0.77 percentage points during the quarter to 72 per cent.

More Stories on : Fixed Deposits | Credit Market | Kerala

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