Dakshina Kannada bankers told to improve CD ratio

Dakshina Kannada bankers told to improve CD ratio

Banks in Dakshina Kannada district have been asked to improve their credit-deposit (CD) ratio.

Addressing the district-level review committee meeting of bankers in Mangalore on Monday, Syndicate Bank Deputy General Manager I T Sethuraman  said that the CD ratio in the district showed a decline of 2.84 per  cent when compared to the corresponding CD ratio of 56.48 per cent on March 31, 2013.

The CD ratio of the district stood at 53.64 per cent.

However, there is still scope for improving the CD ratio in the district, he said.

The CD ratio of Bank of Baroda, State Bank of Patiala, Bank of Maharashtra, Punjab and Sind Bank, Union Bank of India, Indian Overseas Bank, Karnataka Vikas Grameena Bank and SCDCC Bank have crossed more than 60 per cent in the district.

He said that 553 branches of various banks in the district touched a business of Rs 43,032.17 crore on March 31, 2014.

The deposits in the banks stood at Rs 28,008.40 crore and advances at Rs 15,023.77 crore during the period.

He said that the banks should focus on lending to agriculture sector.

The disbursement in farm sector as on March 31, was Rs 1,995 crore against the target of Rs 2,301 crore.

Nabard AGM Prasad Rao said that banks were given the deadline of March 31, 2015, to improve the CD ratio of the branches that have above 50 per cent CD ratio and March 31, 2016 for the CD ratio below 50 per cent.

He directed the banks to identify the potentials at the ground level and promote MSME sector. The bank managers should be assigned to be able to sponsor at least one candidate per month for training in self-employment, he urged.

He said the banks should focus on lending loans for constructing arecanut drying yards in the district. The horticulture department has been asked to prepare a unit cost for the yard.

The banks should also focus on dairy farming and value addition to the dairy products.

Reserve Bank of India Manager Vijayakumar A said the banks have to accelerate lending as per the plan of action prepared by them for achieving the stipulated level of 60 per cent. 

Housing schemes

District Chief Planning Officer Takat Rao said that under Vajpayee Vasati Yojana, the target was 670 beneficiaries, of which 500 beneficiaries have been identified.

Fifteen houses have been completed and 193 houses are in various stages of construction.

The total cost of the house is Rs two lakh, of which Rs 1.20 lakh will be in the form of subsidy from the government, Rs 50,000 bank loan and Rs 30,000 as contribution by the beneficiaries.

Under Rajiv Rinn Yojana (RRY) of the Housing and Urban Poverty Alleviation Ministry (HUPA), 472 houses have been sanctioned to the district.

Under the RRY, loans of Rs five lakh to eight lakh are offered to the economically weaker sections  on subsidised interest rates for a 15-year tenure for buying houses.