Banks asked to improve CD ratio in Bihar to 40%: Sushil Modi

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Patna, Nov 26 (UNI) The Bihar government has asked the public sector banks in the state to upgrade their credit-deposit ratio to at least 40 per cent by March 2009 despite the economic slowdown.

Speaking to newspersons here today after presiding over the annual Bankers' Meet, Deputy Chief Minister Sushil Kumar Modi, who also holds the Finance portfolio, regretted that despite repeated promises most of the public sector bank branches in Bihar had failed to substantially improve their credit baskets causing severe problems to the masses.

As a result, the overall creditdeposit (C/D) ratio in the state was hovering around 32 to 33 per cent even during the current year, Mr Modi said and emphasised the urgent need for its immediate improvement.

Describing this year's floods in the Kosi region as unprecedented which had affected over two million people in five districts, Mr Modi said while the government had undertaken a number of steps to improve their condition, financial institutions like banks must also come forward with easy credit facilities for the poor and downtrodden.

He said though the Reserve Bank of India (RBI) had directed Public sector banks to provide loans to flood-hit people generously, only about 800 applications had so far been granted.

''This was far below our expectations,'' he asserted.

Mr Modi said the state government had decided to distribute about 1.5 million Kisan Credit Cards (KCC) among the poor and marginal farmers during the current fiscal in a bid to boost the agriculture sector.

''Accordingly we are planning to hold a number of mega credit camps in association with banks in different districts every month,'' he said.

Senior managers of all public sector banks, including RBI Chief General Manager V P Vijayendra and General Manager, State Bank of India (SBI), were present during the four hour long meeting.

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