Despite economic slowdown, advances by Gujarat banks grew by 25.77 per cent as against 14.56 per cent rise in deposits for the quarter ending September 30, 2013, on year-on-year basis. The affect of financial crunch was visible as the gross non-performing assets (NPA) of banks in the state stood at 4.74 per cent of the total advances, revealed report of the 139th State Level Banker's Committee (SLBC).
The aggregate advances by the banks in Gujarat grew by Rs 61,219 crore in absolute terms from Rs 237,518 crore on September 30, 2012 to Rs 298,737 crore at the end of second quarter of 2013-14. As compared to previous quarter ending June, 2013, the total advances by banks in the state increased by Rs 12,927 crore from Rs 285,810 crore to Rs 298,737 crore, registering a growth of 4.52 per cent.
In case of deposits in Gujarat banks, the year-on-year growth for second quarter of 2013-14 was Rs 49,954 crore, from Rs 343,137 crore at the end of second quarter last fiscal to Rs 393,091 crore.
The SLBC convenor said that the increase in NRI deposits was mainly due to depreciation of rupee in the international market which led to higher remittence from abroad.
According to report of the 139th meeting of SLBC, the gross advances of the banks in the state of Gujarat was Rs 298,737 crores and gross NPA was Rs 14, 161.84 crores that is 4.74 per cent as of September 30, 2013. Commenting on the higher NPA, lead banker Dena Bank's chairman and managing director Ashwani Kumar said, "We have started collecting data on NPAs of banks in the state from today's meeting. However, I believe that the NPA is higher compared to previous quarter." Kumar said that NPA figure for previous quarter was not available for exact comparison.
Talking about the suggestions made in the SLBC meeting Kumar said that the committee has asked the bankers to increase the bank credit linkages in the state. "Bank credit linkage is low in the state, around 32 per cent. This has to be increased, the committee has suggested to various bankers. In Gujarat nearly 27 per cent of credit is obtained from private sources," he said.
Advances in the priority sector grew by 23.71 per cent, agriculture by 16.89 per cent, MSME by 26.85 per cent and to weaker sections by 14.46 per cent during quarter ending September 30, 2013, compared to corresponding period in 2012-13.
The credit deposit ratio in the state has improved to 76, up 6.78 points compared to same quarter last fiscal. During the 138th SLBC meeting Gujarat chief minister Narendra Modi had expressed disappointment over low credit deposit ratio (CDR) in nationalisd banks of the state compared to other states and suggested lead bankers to change their mindset and have humanitarian approach towards target beneficiaries from weaker sections.
The aggregate advances by the banks in Gujarat grew by Rs 61,219 crore in absolute terms from Rs 237,518 crore on September 30, 2012 to Rs 298,737 crore at the end of second quarter of 2013-14. As compared to previous quarter ending June, 2013, the total advances by banks in the state increased by Rs 12,927 crore from Rs 285,810 crore to Rs 298,737 crore, registering a growth of 4.52 per cent.
In case of deposits in Gujarat banks, the year-on-year growth for second quarter of 2013-14 was Rs 49,954 crore, from Rs 343,137 crore at the end of second quarter last fiscal to Rs 393,091 crore.
Also Read
For second quarter of FY14 the Non-Resident Indian (NRI) deposits increased by Rs 7,123 crores and stood at Rs 38,751 crores forming 9.86 per cent of the total deposits as of quarter ending September 30, 2013, as against Rs 31,628 crore during second quarter of this fiscal.
The SLBC convenor said that the increase in NRI deposits was mainly due to depreciation of rupee in the international market which led to higher remittence from abroad.
According to report of the 139th meeting of SLBC, the gross advances of the banks in the state of Gujarat was Rs 298,737 crores and gross NPA was Rs 14, 161.84 crores that is 4.74 per cent as of September 30, 2013. Commenting on the higher NPA, lead banker Dena Bank's chairman and managing director Ashwani Kumar said, "We have started collecting data on NPAs of banks in the state from today's meeting. However, I believe that the NPA is higher compared to previous quarter." Kumar said that NPA figure for previous quarter was not available for exact comparison.
Talking about the suggestions made in the SLBC meeting Kumar said that the committee has asked the bankers to increase the bank credit linkages in the state. "Bank credit linkage is low in the state, around 32 per cent. This has to be increased, the committee has suggested to various bankers. In Gujarat nearly 27 per cent of credit is obtained from private sources," he said.
Advances in the priority sector grew by 23.71 per cent, agriculture by 16.89 per cent, MSME by 26.85 per cent and to weaker sections by 14.46 per cent during quarter ending September 30, 2013, compared to corresponding period in 2012-13.
The credit deposit ratio in the state has improved to 76, up 6.78 points compared to same quarter last fiscal. During the 138th SLBC meeting Gujarat chief minister Narendra Modi had expressed disappointment over low credit deposit ratio (CDR) in nationalisd banks of the state compared to other states and suggested lead bankers to change their mindset and have humanitarian approach towards target beneficiaries from weaker sections.