Industrial development is key to the size of Cash Deposit Ratio (CDR) in a state and Bihar required to accelerate its industrial activities to improve its CDR, IDBI Bank Executive Director RK Bansal said today.
The growth of CDR in a state reflects requirement for loan for industrial development and Bihar has not yet attracted investment in this sector, he told reporters in reply to a question.
Apparently alluding to the fact that banks were not responsible for the slow pace of CDR growth in Bihar, which was about 36% at present, Bansal said it was a reflection of a factual situation that Bihar was not attracting sufficient number of investors for industrial development.
In other states where there was a high demand for loan from industries, the CDR was very high, he said.
The state government has been raising a hue and cry over the tardy growth in CDR and charging public sector banks for obstinacy to make available loan to the people.
RBI Governor D Subbarao during his recent visit to the state had debunked Bihar government's viewpoint and had said there was no demand for loans in the state.
