BUSINESS

Banks project Rs. 2,422-crore credit disbursement for Kannur

Staff Reporter

KANNUR: Banks in the district has projected a credit disbursal of Rs.2,422.46 crores during 2005-06 under the district credit plan.

This was announced at a meeting of the district-level banking committee for the district chaired by District Collector K.S. Srinivas here on Thursday for reviewing the performance of the banks and other financial institutions in implementing the annual credit plan during the first half of the current financial year.

A press release issued by Lead District Manager P.N. Vijayan Nair said that as against the target of Rs.2,422.46 crores, the achievement of the banks during the first half year ended on September 30 was to the tune of Rs.1,194.95 crores which constituted 49 per cent of the annual target and 104.5 per cent of the half-yearly target of Rs.1,143.47 crores. The meeting assessed that the achievements under the priority sector during the first half year were encouraging. As against the annual target of Rs.1,582.30 crores, the achievement in six months was Rs. 672.70 crores or 43 per cent of the annual target, the release said. The slight shortfall in the performance was mainly due to the improper reporting and non-submission of statements by some bank branches in the district, the release said.

The sector-wise achievement for the first half year was 85.80 per cent for agriculture, 32.07 per cent for small scale industries and 98.03 per cent for tertiary sector.

The total deposits of banking sector stood at Rs.4,204.89 crores and total advances at Rs.2,674.79 crores at the end of the review period with a CD ratio of 62 per cent.

There was an improvement of the CD ratio by seven per cent compared to that of last year, the release said. While the deposits had increased by 8.7 per cent, the advances had gone up by 23.33 per cent. The percentage of agricultural advances to total advances stood at 2 per cent against the stipulated level of 18 per cent. The release said that priority sector advances constituted 68 per cent of the total advances against the required 40 per cent.

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