Bankers expressed concern over the decline in credit-deposit (CD) ratio of banks in Dakshina Kannada district here on Friday.
Reviewing the performance of the banks in the district during the first quarter of 2012-13 at the district-level committee meeting for banking development, J.S. Shenoy, Deputy General Manager of Syndicate Bank (the lead bank of the district) said that there is a declining trend of CD ratio in the district since the past three years.
The CD ratio – which was 55.84 per cent as on June 30, 2010 – has come down to 51.46 per cent during the first quarter of this fiscal.
Terming it as a worrisome factor, Vijaykumar A., RBI representative, said that bankers have not achieved even 60 per cent which is the benchmark prescribed by RBI.
Prasad Rao, Assistant General Manager of NABARD, said that the district-level committee for banking development should form a sub-committee to prepare plan to increase CD ratio in the district. Each bank has to prepare plan for increasing CD ratio.
Hemantha Bhide, Chief Manager of Lead Bank (Syndicate Bank), said that rural branches in the district have outsmarted their urban counterparts in various performance parameters.
The growth in deposits in rural branches was 41 per cent, surpassing the urban branches that registered a growth of 28 per cent.
Shenoy said that the market share of rural branches in business volume has increased while that of urban and semi-urban branches has decreased. He said that the deposit growth of Karnataka Vikas Grameen Bank (the lone regional rural bank in the district), increased by 74 per cent during the period.
The total business of all the banks in the district stood at Rs 34,645 crore during the first quarter of the fiscal, he said.
K.N. Vijaya Prakash, Chief Executive Officer of Dakshina Kannada Zilla Panchayat, presided over the meeting.