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Banks fail to meet RBI norm on CD ratio

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(CD) ratio of a few public sector and private banks in Orissa still remains woeful despite credit flow recording surge of 40.17 per cent to reach Rs 80,956.15 crore by the end of December compared to Rs 57,751.85 crore a year ago.

Among the public sector lenders, and Punjab & Sind Bank have CD ratios of 37.35 and 8.89 respectively, way below the Reserve Bank of India (RBI) stipulated norm of 60.

According to latest data compiled by State Level Bankers' Committee (), Syndicate Bank's finance to agriculture sector stood at a meagre 6.78 per cent. Its advances to weaker sections also stood at only 20.30 per cent. The PSU's gross NPA (Non-Performing Assets) had mounted to Rs 49.25 crore (as on December 31, 2011), comprising 6.81 per cent of total advances.

Besides, the bank has managed to meet barely 36 per cent of its targeted total credit flow for 2011-12 by December-end.

The credit record of Punjab & Sind Bank is even worse. The bank's advances to agriculture and weaker sections stood at 0.42 per cent and 6.97 per cent respectively of total advances. The bank's gross NPA read Rs 1.18 crore, representing 4.14 per cent of total advances.

On the whole, the CD ratio of all public sector banks stood at 68.16. Among private sector banks, (20.29), Federal Bank (26.40), South Indian Bank (1.89) and (14.86) have lacklustre CD ratios. Overall CD ratio of private banks was 78.04 by the end of December.

The CD ratio of five regional rural banks (RRBs) operating in the state is also far from satisfactory with their average ratio at 58.94, less than the RBI mandated figure of 60. Neelachal Gramya Bank (53.95) and Rushikulya Gramya Bank (47.91) have the lowest CD ratio among the RRBs.

District wise analysis of CD ratios shows a lopsided trend. While Maoist infested and economically impaired Malkangiri district in south Orissa is at the bottom with a CD ratio of 24.42, industrial hub Angul, ironically, has a low CD ratio of 46.43. Jharsuguda, the other industrial cluster's CD ratio is at a high of 163.73. The CD ratios of Deogarh (31.34), Gajapati (37.84), Jagatsinghpur (33.91) and Nuapada (39.50) are disappointing.

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