Foreign Banks Have Highest Cd Ratio

The credit-deposit (C-D) ratio of foreign banks is highest in the banking sector. According to the Reserve Bank of India's (RBI's) quarterly handout on aggregate deposits and gross bank credit of all scheduled commercial banks, C-D ratio of foreign banks stood at 89.5 per cent as on March 31 against the all-India ratio of 58.5 per cent.

The C-D ratio for State Bank of India and its Associates were at 69.5 per cent other scheduled commercial banks at 60.6 per cent. The C-D ratios were lower for nationalised banks at 51.2 per cent and regional rural banks at 41.6 per cent.

Population group-wise, metropolitan centres had the highest C-D ratio of 84.3 per cent followed by urban centres (43.0 per cent), rural centres (40.2 per cent) and semi-urban centres (34.2 per cent).

Nationalised banks, however, mobilised highest amount of deposits contributing 53.6 per cent of the aggregate deposits. State Bank of India and its associates accounted for another 24.7 per cent of the total deposit raised.

The shares of aggregate deposits were 12.3 per cent for other scheduled commercial banks, 5.3 per cent for foreign banks and 4.0 per cent for regional rural banks.

As regards gross bank credit, nationalised banks accounted for a share of 46.9 per cent of the total bank credit, while State Bank of India and its Associates claimed a share of 29.4 per cent.

Other scheduled commercial banks, foreign banks and regional rural banks had the relative contributions to the extent of 12.8 per cent, 8.1 per cent and 2.8 per cent respectively, of the total gross bank credit.

Among the states and union territories, the year-on-year growth rate of deposits was highest in Dadra & Nagar Haveli (34.5 per cent), growth rate of bank credit was highest in Chandigarh (119.8 per cent). Six states, namely, Maharashtra, Delhi, Uttar Pradesh, West Bengal, Tamil Nadu and Karnataka together accounted for a total share of 58.0 per cent of aggregate deposits.

Similarly, the six states, namely, Maharashtra, Delhi, Tamil Nadu, Andhra Pradesh, Karnataka and West Bengal together accounted for a total share of 70.2 per cent of Gross Bank Credit. Maharashtra alone contributed 18.3 per cent of total deposits and 26.7 per cent of total credit.