Credit-deposit ratio low in DK

It was less than 60 per cent in the past four years

The continued lesser credit-deposit ratio (CD ratio) in Dakshina Kannada district has been a cause for concern for banks as it might indicate the economic health of residents of the district.

Speaking at the 154th district-level review of performance of banks here, deputy general manager of the district-lead bank, Syndicate Bank, I.T. Sethuraman said the ratio had been less than 60 per cent in the last four years.

Representatives of the participating banks, however, informed the meeting that not many people come forward to get loans as the district gets money from the overseas.

Chief Manager, Lead Bank, Amaranth Hegde, said advances under consortium arrangements were not reflected in the credit disbursal details of banks in the district.

This could be one of the reasons for the lower CD ratio, he said.

Assistant General Manager of Natioal Bank for Agriculture and Rural Development, Prasad Rao, suggested the that the banks focus on extending financial assistance to micro, small and medium enterprises sector.

Besides improving banks’ business, the move would also help generating employment, he said.

Also, banks could finance areca nut drying yards in the district besides giving thrust to investment in animal husbandry, he said.

All these measures could improve credit disbursement in the region, he felt.

Mr. Sethuraman gave two years to banks whose CD ratio was up to 50 per cent and one year to those whose ratio was between 50 and 60 per cent to improve the ratio above 60 per cent, closer to the state average.

Mr. Rao suggested to banks to use the data on financial inclusion while designing new development schemes in the district.

He said banks may provide details with regard to basic savings bank accounts opened under the financial inclusion plan, the amount in such accounts and transactions carried out in such accounts.

These details, Mr. Rao said would help devise new schemes for the welfare of people.

The banking business in the district has crossed Rs. 43,000 in 2013-14 even as the number of branches has increased from 521 to 553 during the relevant period, Mr. Hegde said.