Credit-deposit ratio declines in TN banks

The credit-deposit ratio (CD) of commercial banks and regional rural banks (RRBs) in Tamil Nadu declined to 109 per cent as of March 31, 2010, from 114 per cent a year ago. However, the CD ratio of the co-operative banks has increased to 141 percent from 107 percent.

According to the National Bank for Agriculture and Rural Development (Nabard), the total deposits outstanding by all the banks registered an increase of 22.4 percent to Rs 3 lakh crore in 2009-10 from Rs 2.45 lakh crore in 2008-09. Total advances increased to Rs 3.68 lakh crore from Rs 2.86 lakh crore, an increase of 28.8 per cent.

The priority sector advances of commercial banks increased by 13-23 percent in 2009-10, and the share of priority sector advances in total credit as of March 2010 was 44.61 percent as against the norm of 40 percent. Agriculture advances of commercial banks increased by 18-22 per cent, and the share in total advances was 18.44 per cent, against the norm of 18 percent.

The state has a wide network of bank branches totaling 7,921, with 5,989 branches of commercial banks (including nationalised banks, private sector and foreign banks), 46 state co-operative bank, 768 branches of 24 district central cooperative banks, a state cooperative agriculture and rural development bank and two RRBs with 290 branches. The average population per branch works out to 8,558 and the per capita deposit was Rs 48,000 and the per capital credit was Rs 59,000 for the state.

According to Nabard, there is no unbanked block in the state, but there are five underbanked blocks in four districts, namely Konganapuram and Kolathur blocks in Salem, Kannangudi block Sivaganga, Jawadhu Hills block in Tiruvannamallai and Kalrayan Hills block in Villipuram.