Bankers to review CD ratio of 4 Punjab districts on regular basis

Perturbed over the low CD (credit-deposit) ratio in four districts of Punjab, bankers in the state have decided to review the CD ratio of these districts (Jalandhar, Kapurthala, Nawanshahar and Hoshiarpur) on a regular basis to achieve the desired target.

According to the State Level Bankers Committee, the CD ratio in these districts is less than 40 per cent, against the statutory requirement of 60 per cent. As of June this year, the CD ratio in Jalandhar, Kapurthala, Nawanshahr and Hoshiarpur was 32.66 per cent, 28.41 per cent, 33.00 per cent and 31.04 per cent respectively. In June 2012, the CD ratio in Jalandhar was 33.50 per cent, 33.56 per cent in Kapurthala, 30.02 per cent in Nawanshahr and 31.75 per cent in Hoshiarpur. Considering the data, it is evident that CD ratio witnessed negative growth during the period.

In the state level bankers committee which was held here recently, it was decided that there was a need of consistent efforts by all concerned to reach closer to the next target of CD ratio in these districts. Further, the lead district managers of these districts have been advised by the convener bank (Punjab National Bank) to converge meetings of special sub committees(SSC) of district coordination committee formulated on regular basis.

It would help to keep track on the CD ratio of banks in these districts and also would help in achieving the desired target.

It is pertinent to mention here that CD ratio in these districts has been a cause of concern since 2006. The CD ratio of these four districts was below 40 per cent in September 2005. So, according to the recommendations of an expert group constituted by the government of India under the chairmanship of Y P Thorat, an SSC of district level consultative committee was constituted in districts with a CD ratio of less than 40 per cent and monitorable action plans were drawn to increase the CD ratio on a self set graduated basis. According to the monitorable action plan, it was targeted to achieve 60 per cent CD ratio in these districts by 2015.