Kerala's major commercial centre of Ernakulam has recorded a four percent fall in the loan portfolio of commercial banks during April - June period of the current year.
According to the district-level Banking Review Committee, the total loan disbursment during the period dropped by Rs 1,655 crore to Rs 36,967.03 crore, compared to Rs 38,621.88 crore during January - March period of 2011.
The committee noted that the fall was a unique one, with no comparison in the recent past. The district is considered as the business capital of Kerala, accounting for 40 per cent of the total business of the state.
At the same time, there was an increase of Rs 3,647 crore in the deposits. The deposits grew to Rs 37,777.71 crore compared to Rs 34,130.22 crore during January- March 2011. The increase in deposits was also the maximum in the recent past.
According to banking experts, the increase in interest rates was the main reason behind the negative impact on advances and growth of deposits. The credit-deposit ratio in the district has decreased to 97.85 per cent as on June 30, while it was 113.16 percent as on March 31, 2011.
In the June quarter, priority sector loans grew 16.45 percent, while the overall increase under the District Credit Plan was 15.15 percent. The share of priority sector lending was 49.66 per cent.
The meeting was inaugurated by P Rajeev, MP, and was attended by district collector PI Sheikh Pareeth; Mayank Mehta, deputy general manager, Union Bank of India; KR Jayaprakash, lead district manager; KD Joseph, AGM, RBI; and Venu S Menon, AGM, Nabard.
