Banks' investments at a record low in Guj

Commercial banks have invested a record low amount in Gujarat during 2002-03.

Though the figures for the last year are not available , the situation is pretty serious as the credit-deposit ratio of banks have touched the lowest at 45.24 per cent in 2002-03.

"When Gujarat is jumping up on the economic front and when the Gujarat government is trying hard to bring it on the top amongst all the states in the country, the long-pending grievance against the low capital is to deposit ratio of banks needs to be corrected at the earliest. The financial institutions needed a hard look over their apathy towards the state," said Shreyas Pandya, president Gujarat Chamber of Commerce and Industry (GCCI).

He urged the Union finance ministry to immediately look into the situation, which is having a great bearing on the progress of the state.

The disbursements of the financial institutions were down by more than 52 per cent compared with those in the previous year.

The bank deposits have reached the level of Rs 71,767 crore, showing a rise of about 10 per cent of over previous year.

The credit, however, showed the figures of Rs 32,469 crore, which is less by 9.15 per cent compared with the previous year.

The capital-to-deposit ratio of banks, which was highest at 56.91 per cent in 1995-96, was running between 52-54 per cent in the succeeding years.

It was 54.75 per cent in 2001-02 and then jumped down to lowest at 45.24 per cent in the succeeding year.

The situation is pretty bad as far as financial institutions are concerned.

The total loans sanctioned by them in Gujarat during the financial year 2002-03 were only Rs 1,879 crore, which were the lowest in the last nine years and 73 per cent less than the Rs 7,034 crore sanctioned in the previous year.

Their disbursements were Rs 1,650 crore, which were also the lowest in the last several years and more than 52 per cent less compared with the previous year.