J'Khand CD ratio at 45pc, plan to increase it to 50pc soon: SLBC

Concerned about Jharkhand's low credit-deposit ratio at 45 per cent, the state-level bankers' committee on Wednesday decided to take it to 50 per cent by the quarter ending September 2023 of the current fiscal.

The SLBC was headed by Bank of India Managing Director and CEO Rajneesh Karnatak.

''All banks are committed to the economic growth of Jharkhand...There is a plan for improving the CD ratio. This year, it has improved by 6 per cent on a year-on-year basis. There are individual credit plans for all the banks, including 12 per cent for the Bank of India (BoI),'' Karnatak said.

The credit-deposit ratio in the state was recorded at 45.07 per cent on March 31, 2023, as against 42.37 per cent by the end of the previous fiscal, registering an increase of 6.37 per cent.

According to the RBI guidelines, the CD ratio can be much higher and can reach 77-78 per cent but the reason for the state's low credit to deposit proportion is ''primarily due to absence of manufacturing here though agriculture and mining exist'', he said.

''Promoters or owners of manufacturing units are outside Jharkhand. That is the reason that the overall CD ratio is on the lower side,'' Karanatak said, exuding confidence that ''aggressive'' plans will result in an increase in the proportion.

He, however, said, ''Economic indicators are good in the state. Household saving is high. The savings account balance is good here. People's earnings are good and they have deposits in their bank accounts.'' Jharkhand registered a year-on-year increase of Rs 24,777 crore in deposits whereas the rise in total loans stood at Rs 18,780 crore during the period, state level bankers committee (SLBC) said.

As far as the annual credit plan is concerned, a target of Rs 13,274.18 crore for the 2022-23 financial year was set in the agriculture sector, and the total achievement of the state till March 2023 quarter was Rs 12,102.53 crore.

Of the target of credit disbursement of Rs 17,377.96 crore for 2022-23 in the field of micro, small and medium enterprises, the total achievement till the end of the year was Rs 25,428.51 crore -- 146.33 per cent of the goal.

''Against the target of Rs 36,636.31 crore for the year 2022-23 in the total priority sector, the achievement of the state till March 2023 quarter was RS 40,617.79 crore,'' the SLBC said. There is a plan to open bank branches by June 2023 in all the villages having more than 3,000 population.

Those present in the meeting included state Finance Minister Rameshwar Oraon, Finance Secretary Ajoy Kumar Singh among others.

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