J'Khand's credit-deposit ratio at 50 pc, plan to increase it to 55pc by March: SLBC

Ranchi, Jan 18 (PTI) The state-level bankers' committee (SLBC) on Saturday decided to take the credit-deposit (CD) ratio to 55 per cent from the current 50 per cent by end-March.

The SLBC was headed by Bank of India executive director M Karthikeyan, while Jharkhand finance minister Radha Krishna Kishore and finance secretary Prashank Kumar were also present at the meeting.

"The CD ratio has increased in the state but it is still low compared to the national average of 87 per cent," Kishore said.

The minister also raised objection over the proposed shifting of zonal office of Union Bank of India to Patna in Bihar from Jharkhand during the meeting.

"In Jharkhand, the Union Bank of India has 120 branches with a total deposit of Rs 13,555 crore. In Bihar, it has 236 branches having a deposit of Rs 15,743 crore. I have asked the bank officials about reasons for shifting when Jharkhand has fewer branches with more deposits. It is against the Jharkhand’s interest and not acceptable," the minister told reporters after the meeting.

In welcome address, SLBC general manager and regional general manager of Bank of India Manoj Kumar said the CD ratio of Jharkhand crossed 50 per cent for the first time, reaching 50.22 per cent as of September 30,2024.

He said the CD ratio of the state has continuously been increasing, which indicates that the banks in the state are actively contributing to the flow of credit.

The credit-deposit ratio in the state was recorded at 50.22 per cent on September 30, 2024, as against 45.04 per cent on September 30, 2023, registering an annual increase of 11.50 per cent.

"All banks are committed to the economic growth of Jharkhand...I assured on behalf of all that the milestone of 55 per cent CD ratio will be achieved by the end of March 2025," Karthikeyan said.

Jharkhand registered a year-on-year increase of Rs 29,048 crore in deposits whereas the rise in total loans stood at Rs 23,152 crore during the period, state level bankers committee (SLBC) said.

As far as the annual credit plan is concerned, a target of Rs 23,100 crore for the 2024-25 financial year was set in the agriculture sector, and the total achievement of the state till September 2024 quarter was Rs 7,399 crore. PTI SAN SAN MNB

Source: PTI