Near double credit-deposit (CD) ratio, as compared to the Reserve Bank of India’s norm of 60 per cent, and the high overdues position in the agriculture sector in Andhra Pradesh have been the major concerns voiced by the bankers at the State-Level Bankers Committee (SLBC) meeting held here on Saturday.
The CD ratio in the state stood at 115.80 per cent with the incremental CD ratio touching 119 per cent as on December 31, 2001. The banks in the state have advanced Rs 3,69,048 crore, as compared to Rs 3,18,702 crore deposits raised during the same period.
“The issue of high CD ratio was discussed in the earlier meeting also. We need to make concerted efforts to improve the resource position and the government may also extend necessary help. Continued high CD ratio is not desirable since it may affect growth of robust credit portfolio,” BA Prabhakar, chairman and managing director of Andhra Bank, the convenor of SLBC, told the meeting.
Recovery of agriculture loans is also bothering the banking sector as the overdues under the agriculture sector are to the tune of 17.08 per cent, of which non-performing assets (NPAs) constitute 5.69 per cent.
Of the credit plan of Rs 73,316 crore approved for the current financial year, the banks could lend Rs 59,976 crore by December 2011, which is 81.80 per cent of the target . While the agriculture loan disbursements shown near complete achievement of the target of Rs 30,985 crore, the other priority sectors that include small and medium enterprises saw just 50.84 per cent disbursement out of the total credit target of Rs 17,118 crore.
Chief minister N Kiran Kumar Reddy, who chaired the meeting, expressed his displeasure over poor credit disbursements to small and medium enterprises in the state.
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