MP banks have more ground to cover

With disbursement in the agri sector reaching Rs 5,533 crore by January this year, or 83 per cent of the target of Rs 6,668 crore by March next year, banks in Madhya Pradesh have attained a credit deposit ratio of 72.97 per cent in 2005-06.

The credit deposit ratio in semi-urban and rural branches is 77.81 per cent, which is much higher than the national norm of 77.81 per cent. Still, there is a room for improvement in the credit deposit ratio.

Banks deposits increased by only Rs 520 crore and advances by Rs 9,495 crore over March last year; and priority sector advances swelled by Rs 4,841 crore. Farm advances have increased by Rs 2,321 crore with an 18.03 per cent increase over the previous year.

Under the annual credit plan banks have disbursed Rs 4999.82 crore under agriculture, Rs 341 crore under small scale and Rs 1469.96 crore under other priority sector against a target of Rs 5940.63 crore, Rs 536.65 crore and Rs 1808.63 crore respectively.

According to data available with BS, the percentage of achievement under agriculture, small scale and other priority sector is 84 per cent, 64 per cent and 81 per cent respectively.

Similarly SSI advances has registered an increase of Rs 229 crore from Rs 1,857 crore as on March 2005 to Rs 2,086 crore as on December 2005 registering a growth of 12.33 per cent.

Still there is a huge possibility for growth of small scale in Madhya Pradesh for which infrastructure development is required to be developed.

According to state level bankers committee meet, 14 districts in Madhya Pradesh registered CD ratio below 40% and 11 districts crossed CD ratio more than 40%. The committee constituted for the purpose will review and submit a report for remedial measures.

However bankers failed to recover loans under Prime Minster Rojgar Yojana with non-performing assets growing by 28%. "Under all government sponsored schemes and programmes, the non-performing assets ranges between 20-40%," a senior banker said.