BHUBANESWAR: Commercial banks operating in the State have failed to improve their performance to achieve the RBI norm of 60 per cent (pc) credit-deposit (CD) ratio. While the CD ratio of banks basing on total utilisation of credit in the State by the end of December 2020 was 54.13 pc, it was 56 pc in the current fiscal.
Expressing concern over poor CD ratio in many districts, Finance Minister Niranjan Pujari urged the State Level Bankers Committee (SLBC) to take necessary steps in consultation with local heads of the banks concerned to improve the situation. Addressing the 163rd SLBC meeting virtually, Pujari said the Covid-19 pandemic has thrown an unprecedented challenge to life and livelihoods and the economy is in a bad shape. The banks have to play a proactive role in revival of the economy.
“I would like to impress upon all the bankers to show positive improvement and bring the ratio at par with the national average,” said Pujari. Highlighting the role of banks in strengthening the State’s economy that took a severe battering due to the pandemic, the Finance Minister urged the bankers to sanction credit to the priority sectors in order to achieve the target envisaged in the annual credit plan for 2021-22. He, however, praised the banks for liberal credit lending to women self-help groups (SHGs). The SHGs have achieved a turnover of `6,002 crore in the last fiscal due to credit facility from commercial banks.
Development Commissioner Pradeep Jena advised the bankers to continue with their credit support to agriculture and allied sectors which are the backbone of the State economy. Principal Secretary of Finance Ashok Meena said it is a matter of concern that commercial banks failed to improve their CD ratio despite repeated request by the government.