Money & Banking

Kerala banks' credit growth eclipses that of deposits

Our Bureau Thiruvananthapuram | Updated on March 18, 2011

Banks in Kerala have achieved linear growth in total deposits, total advances and credit-to-deposit (CD) ratio, if the December-31 figures for the three years ending last year are any indication.

The CD ratio, in particular, has grown from 66.35 per cent to 66.98 per cent to 72.29 per cent as on December 31, 2010, the 103{+r}{+d} meeting of the State-Level Bankers' Committee (SLBC) was told here.

Mr H.S. Upendra Kamath, Executive Director, Canara Bank, Convenor of SLBC-Kerala, presided over the meeting.

SLBC figures reveal that advances, as the Reserve Bank of India has been reminding bankers, have grown at a pace that is ‘too fast for comfort' over that of deposits during 2008, 2009 and 2010.


While the growth in deposits has been 12.98 per cent from 2008 to 2009, it was rather muted at 14.27 per cent during the succeeding year (2009-10).

However, this has not been the case with advances, whose growth fired up to 23.34 per cent year-on-year in 2010 against 14.05 per cent of the previous comparable period.

Similarly, the CD ratio has also registered spectacular year-on-year growth rate of .94 per cent to seven per cent during the periods under reference.


In fiscal 2010-11, there has been a growth of Rs 14,902 crore in deposits in the first three quarters, with the outstanding total reaching Rs 1,58,306 crore.

During the corresponding period of the previous fiscal, the total deposits of the State were Rs 1,01,119 crore.

A significant feature is that the share of domestic deposits in the total is gradually increasing.

As on March 2004, the share of domestic deposits in total deposits was 54.37 per cent, which has steadily increased to 76.59 per cent as on December 2010.

Private sector banks (56.97 per cent) had had the highest share of growth of deposits as on December 2010; nationalised banks made up 25.12 per cent.


Commercial banks have disbursed Rs 42,558 crore to the priority sector till December.

This is 88 per cent of the disbursement target of Rs 48,421 crore for the whole year.

Farm sector

Out of this, Rs 20,492 crore was lent to the agricultural sector, Rs 2,112 crore for the small and medium sector and Rs 19,954 crore to other priority sectors.

While total advances, as on December, added up to Rs 1,14,446 crore, total advances and investments in approved securities/debentures were Rs 1,19,663 crore.

Among those who attended the SLBC meeting were Mr K. Jayakumar, Additional Chief Secretary and Agriculture Production Commissioner, Kerala; Mrs Nivedita P. Haran, Additional Chief Secretary (Revenue); Mr Subrata Biswas, Principal Secretary, Department of Animal Husbandry and Dairy Development; Mr M. Gireesh Kumar, Officer on Special Duty Finance (resources); Mrs Suma Verma, Regional Director, Reserve Bank of India; and Mr K.C. Shashidhar, Chief General Manager, National Bank for Agriculture and Rural Development.

Published on March 18, 2011

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