Sbi Targets Ssis, Agri Finance In Bid To Boost Cd Ratio

In a bid to increase the credit deposit (CD) ratio and bolster the asset side of the balance sheet the State Bank of India (SBI), for its Goa module, is targeting the small scale industries (SSI) and agricultural financing. The bank is expanding its branches to capitalise on the state's industrialisation spree.

A high-level meeting was convened by finance ministry on August 13, 1996, to review the credit-linked programmes to ascertain the quantum and flow of credit to small borrowers and to fix targets for improvement.

SBI is opening a branch in Verna industrial estate to specifically cater to the SSIs and small business finance (SBF).

 

This apart, to capture the personal finance segment it is opening branches at Dona-Paula and Lanja in Ratnagiri district, part of the Goa module.

Besides, the bank has started a computerisation drive to ward off threat from the new private banks in the state.

The CD ratio is 25 per cent for the SBI Goa module which has 68 branches comprising 44 in the state and another 24 in two districts of Maharashtra.

The SBI credit deposit ratio at the national level stands at 58 per cent which is higher by four percentage points compared with all schedule commercial banks with a 54 per cent ratio. The Reserve Bank has set national level CD ratio target of 60 per cent.

According to SBI officials, Goa has traditionally been high on savings and credit offtake is low as it has a low entrepreneurial rate. More than 90 per cent of the entrepreneurs are outsiders. Besides, locals refrain from taking advances as it is still considered a stigma to take loans. Hence, advances are unlikely to witness any major upswings.

"Our emphasis is on increasing SSI, small business and agricultural finance and housing and educational loans. This is because large borrowers like Proctor & Gamble, Siemens etc though having local operations do their banking with the central office at Mumbai," a senior SBI official said. SBI's priority sector advance stands at 42 per cent of the total advances where as for Goa it is 36 per cent.

The Goa module has forecasted a 20 per cent growth for its advances and deposits for the current financial year.

Deposits are targeted at Rs 1,159 crore as against Rs 947 crore achieved in 1996-97 and the advances are aimed at Rs 215 crore as against Rs 178 crore during the previous year.

Thomas Cook counters at Goa branches

SBI has identified branches in Calangute and Margao for the tie-up it entered into with Thomas Cook, the travel company, a year back. The bank in a bid to penetrate the tourism industry had joined hands with the travel firm. However, modalities of the partnership were not announced.

A senior SBI official said "Thomas Cook will be deputing two of their employees in each of these branches. The travel company will be handle the converting and encashing of foreign currency and travellers cheques. However, the SBI has retained other banking functions like bill discounting and opening of letters of credit."

"The partnership will be operational in the next few months. The deal is in an advanced stage and finer details like sharing of commission and charges, and rent for the space let out to the travel company is being worked out," the official added.