The Reserve Bank of India (RBI) has shown concern regarding Gujarat's slow year-on-year growth of deposits compared to the all India growth rate. | |
| Speaking to reporters, Purushottam Kumar, general manager of Dena Bank, said, "The Gujarat has registered 5.09 per cent growth in deposit in nine months ended on December 2006 compared to the all India growth rate of over 20 per cent." |
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| The deposits of all the banks in Gujarat were Rs 112,348 crore in March 2006, which rose to Rs 118,071 crore up to December 2006 for the nine months reviewed for fiscal 2006-07 conducted by the State Level Banker's Committee (SLBC). Dena Bank is the lead bank and convener of SLBC in the state of Gujarat. |
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| "During the September-December quarter, the deposit rate even registered negative growth of 3 per cent," said Kumar. He further informed that RBI deputy governor has shown her concern over the low rate of deposit growth in the state compared to the national deposit growth rate. |
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| In a review report of December 2006 of SLBC - Gujarat, it said: "Usha Thorat, Deputy Governor, RBI during her meeting with bankers at Ahmedabad on 24.2.2007 had expressed concerned at the slow year on year growth of bank deposits in the state of Gujarat in comparison to All India Growth Rate of over 20 percent. She, therefore, desired that SLBC should constitute a small group so as to ascertain the correct reasons for the said phenomenon by examining deposit growth preferably since 1991 and vis-a-vis the growth rate of household savings, IPO financing and investment in mutual fund." |
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| Based on the suggestion by the deputy governor of RBI, the SLBC had formed a committee to study the reason of the low deposit growth rate. The committee consist of Dena Bank, Bank of India, Bank of Baroda, Central Bank of India, Union Bank of India, State Bank of India and State Bank of Saurashtra. |
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| The present deposit growth rate is considered to be the lowest in the country. As per the experts, the highest deposit growth rate are in Maharashtra, Chandigarh and Delhi. |
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