The credit-deposit (CD) ratio of the commercial banking sector in Kerala increased by 3.04 percentage points during the second quarter of 2010-11 to reach the level of 70.82 per cent as on September 30, 2010, according to the review notes presented at the latest meeting of the State Level Bankers’ Committee.
The CD ratio of the State Bank Group reached 67.64 per cent, other nationalised banks 74.93 per cent, regional rural banks 122.8 per cent and private sector banks 65.73 per cent. The benchmark set in this respect is 60 per cent.
The ratio of credit and investment to deposit (C+I:D) of the commercial banking sector in the State too registered an increase during the quarter. It increased by 3.21 per cent from the level of 70.37 per cent to 73.58 per cent during the quarter, the review said.
During the first half of 2010-11, deposits with the banks grew by Rs.8,442 crore to touch the level the level of Rs.1,51,846 crore. The review said that a significant feature of the deposit growth was the gradual increase in the share of domestic deposits in the total volume of deposits. As at March 2004, the share of domestic deposits in the total deposits was 54.37 per cent. It went up to 75.34 per cent as at September 2010.
In other words, there had been a steady decrease in the share of non-resident deposits in the total volume of deposits with the banking system in the State during this period. Non-resident deposits, in real terms, came down by Rs.596 crore during the second quarter of 2010-11, reflecting a particularly unfavourable phase. Year-on-year decline in non-resident deposits as at September 2010 came to Rs.14 crore, the total volume having come down from Rs.37,454 crore to Rs.37,440 crore between September 30, 2009 and September 30, 2010.
During the first half of the current financial year, the advances grew by Rs.10,546 crore to reach the level of Rs.1,07,533 crore as on September 30, 2010. This indicates that credit absorption in the State is gathering momentum. Growth in advances during the same period of the previous financial year was Rs.5,867 crore.