Mangaluru: The District Consultive Committee Meeting on the developments of the banking sector in first quarter of 2016-17 financial year was conducted at the Zilla Panchayat Office on Friday, 14 October. The performance of banks in various fields of operation was reviewed by the panelists with the representatives of various banks in Dakshina Kannada.
It is observed that there were various facts backing the growth of banking sector on the whole but few banks were lacking in the amount of loans and advances that they gave. Most of the Public Sector Banks had low CD (Credit to Deposit) Ratio which needs to be improved. However, the combined growth rate in total business of the banks this year as against the past year is a total of 10.50 which is considered a good number.
The difference in total business of all the banks from June 2015 to June 2016 is Rs 5363 crore while the total business (advances and deposits together) over the past one year is Rs. 56445 crore. The CD Ratio has also seen a growth of 0.48% over the past year.
The CD Ratio being an important determinant of growth of the banks, should be worked on by the banks of the district. This includes giving more advances to people in the form of loans out of which the banks can earn revenue through interest. A healthy CD ratio according to banking experts is 60% and anything below that can lead to stagnancy. All the private sector banks of the district have a CD ratio of 99.50% and the Regional Rural Banks have 99.62%0, but the average CD ratio of public sector banks stand at 48.20% including the highest CD ratio at 70.27% of Syndicate Bank and the lowest being Karnataka Bank with ratio of only 29.08%.
“Though a certain part of deposits go in the RBI’s kitty as CRR (Cash reserve Ratio) and SLR (Statutory Liquidity Ratio), Banks should work more on revenue generation model by giving more advances after receiving a significant amount of deposits. Lending of atleast 60 Rupees per 100 Rupees received should be the goal for the next quarter of the financial year”, said Gopinath, the Assistant General Manager of RBI Regional Office.
There were many other topics discussed by the panel as per the agendas. The topics of financial inclusion in villages, guidelines of RBI and NABARD, market intelligence against fraudulent practices, implementation of various Government schemes and extensive funding for various agriculture sector were also touched upon by the panelists.
Lokesh the Project Director chaired the meeting as a representative of the District Commissioner in his absence, N S R Somayaji DGM of Syndicate Bank Regional Office in Mangaluru, and S Ramesh the AGM of NABARD were the panelists who suggested the bank representatives on various issues.
