The aggregate deposits of commercial banks in Karnataka have risen 14.44 per cent to Rs 4,10,233 crore for the first six months of the fiscal-ended September 2012 compared to the corresponding period last year. In the first six months of last fiscal, the banks had mobilised Rs 3,58,474 crore deposits.
The total outstanding credit of banks stood at Rs 3,04,940 crore as of September 2012 compared to Rs 2,66,315 crore for September 2011, recording a growth of 14.50 per cent. The CD ratio as of September 2012 was 74.33 per cent as against 74.29 per cent during the previous year, recording an increase of only 0.04 per cent.
“All banks have been asked to take necessary steps to improve their CD ratio to optimally harness the potential in the state. I request the banks to furnish the information on the corporates having their units in Karnataka and availing credit facilities from branches located outside the state so as to arrive at the adjusted CD ratio,” M G Sanghvi, chairman and managing director, Syndicate Bank, and chairman, State Level Bankers’ Committee (SLBC) for Karnataka, said.
Further analysis indicates that some banks with a good presence have a CD ratio below 60 per cent (Corporation Bank 56 per cent, State Bank of Hyderabad 56 per cent, Bank of Baroda 59 per cent, Indian Overseas Bank 51 per cent, Uco Bank 48 per cent, Karnataka Bank 40 per cent). “These banks need to take steps to increase flow of credit to productive sectors of the economy,” he said.
As of September 2012, the number of bank branches in the state were 8,060, of which commercial banks had 5,760 branches, regional rural banks had 1,397 and the remaining 943 branches from Apex Bank, KSFC, district cooperative banks among others.
The outstanding level of priority sector credit as on September 30, 2012 was Rs 1,22,253 crore as against Rs 1,12,346 crore last year showing a growth of 8.82 per cent. The percentage of priority sector advances of banks works out to 40.09 per cent, thereby marginally surpassing benchmark level of 40 per cent stipulated by Reserve Bank of India (RBI), he said.
Addressing the 123rd meeting of SLBC, here on Monday, Sanghvi said agricultural advances stood at Rs 59,088 crore as on September 30, 2012 against Rs 49,233 crore in the corresponding period last year thereby recording a growth rate of 20.02 per cent. The percentage share of agriculture advances to total credit stood at 19.38 per cent, which is above the benchmark of 18 per cent.
He said the total advances to women segment have increased 7.33 per cent to Rs 23,797 crore for the half-year ended September 2012 as against Rs 22,172 crore in the same period last year.
This also constitutes 7.80 per cent of the total credit, Sanghvi said.
