MSME advances up 28% (YoY), while agriculture credit lags behind.
The aggregate deposits of the banks in Gujarat reported a growth of 22 per cent (year-on-year) at Rs 2,91,967 crore during the quarter ended September 2011, while the aggregate advances grew by 23 per cent (year-on-year) at Rs 1,96,885 crore for the quarter under review, the Gujarat State Level Bankers' Committee (SLBC) report noted.
The growth momentum in deposits and advances remained almost steady compared to the previous quarter ended June 30, 2011.
The highest percentage wise growth in deposits during the quarter was registered by Nationalised Banks at 6.62 per cent followed by RRBs 4.57 per cent, SBI Group at 4.04 per cent whereas private sector banks have registered negative growth by 1.75 per cent, the SLBC report noted.
According to the report, during September quarter advances to micro - small and medium enterprises (MSMEs) reported sharp rise of 28.64 per cent against same period last year at Rs 28,980 crore. Meanwhile, the agriculture advances grew by 16.18 per cent at Rs 30,902 crore. Primary sector advances grew at a rate of 21.9 per cent to Rs 77,795 crore fur the September quarter.
However, the growth in agriculture advances remained lower against 25 per cent in June quarter. Sources in the banking circle maintained that the slackness in the advances to agriculture sector was mainly due to sowing activity during monsoon season.
The credit-deposit (CD) ratio of Gujarat has slipped marginally from 68.86 per cent as of June, 2011 to 67.43 for 2010-11, showing a drop of 1.43 per cent during the September quarter. Dena Bank, the convenor for SLBC-Gujarat, hosted the meeting on Thursday where bankers as well as government representatives discussed the current state of banking and programmes including financial inclusion plan (FIP) and rural branch network in the state.
The SLBC also noted that since the introduction of Stimulus Package by the central government in 2009, the banks in Gujarat have extended finance to the tune of Rs 36,362.60 crores up to the quarter ended September, 2011.
Of this, MSME sector received finances of Rs 17,255.03 crores (including Gensets), housing sector received finances of Rs 13,655.54 crores and auto sector got Rs 5,452.03 crores under the stimulus package. The total number of branches in Gujarat has increased by 54 during the September quarter at 6,515.
