CD ratio of public sector banks falls to 55.15

19 districts in Orissa have CD ratio below RBI norm of 60.

The Credit-Deposit (CD) ratio of public sector banks in the state, which has witnessed a downtrend for the past couple of years, has not recorded any substantial improvement by the end of December 2010. The CD ratio of the PSU banks has slipped to 55.15 in the said period as against the RBI (Reserve Bank of India) stipulation of 60.

According to the data compiled by the State Level Bankers' Committee (SLBC), seven public sector banks had a CD ratio of below 60 per cent. The PSU banks with a CD ratio less than that of RBI's stipulation are Corporation Bank (17.00), Industrial Development Bank of India-IDBI (29.30), Oriental Bank of Commerce-OBC (39.58), Punjab & Sind Bank (12.12), State Bank of Travancore (39.69), United Bank of India (38.72) and Vijaya Bank (20.00).

In terms of CD ratio, the performance of some of the private sector bans has also been dismal. The private banks whose CD ratio was less than 60 are Federal Bank (52.87), ICICI Bank (44.64), Rajasthan Bank (13.56), ING Vysya Bank (44.87), Indus Ind Bank (47.71), South Indian Bank (2.92) and Lakshmi Vilas Bank (57.13). The overall CD ratio of all the private sector banks was 61.02.

Among the Regional Rural Banks (RRBs), four out of five RRBs had a CD ratio less than 60 by the end of December 2010. These are Baitarani Gramya Bank (55.75), Kalinga Gramya Bank (55.53), Neelachal Gramya Bank (50.11) and Rushikulya Gramya Bank (42.56). Only Utkal Gramya Bank had a CD ratio of 64.79. The average CD ratio of these RRBs stood at 55.38. The Orissa State Cooperative bank had an impressive CD ratio of 96.46. The average CD ratio of all the banks operating in the state stands at 63.67.

As far as commercial banks are concerned, the CD ratio has declined from 64.22 by the end of December 2009 to 61.57 by the end of December 2010. The CD ratio which stood at 65.92 by the end of December 2008 dipped to 64.22 in December 2009 and has witnessed a steady decline since then. Going by district wise figures, 19 out of 30 districts in the state have a CD ratio of below 60. Sambalpur district had the lowest CD ratio at 25.13 followed by Malkangiri at 26.06 and Jagatsinghpur at 31.61. Other districts with CD ratio of less than 60 are Angul, Bolangir, Cuttack, Deogarh, Gajapati, Ganjam, Jajpur, Kandhamal, Kendrapara, Keonjhar, Koraput, Mayurbhanj, Nowrangpur, Nuapada, Puri and Rayagada.