Punjab's rural sector has 'lowest' credit deposit ratio: Report
Along with decline in the overall Credit Deposit (CD) ratio of banks in Punjab for the period ending June 2014, the CD ratio of state’s rural sector has been registered the “lowest” in comparison to that of in urban and semi-urban sectors. As per latest report of State Level Bankers’ Committee (Punjab), the CD ratio of banks in Punjab’s rural sector plunged to 60.76% as on June 2014 from 63.21% in corresponding period of year 2013.
“Credit Deposit (CD) ratio” refers to how much a bank gives as loans of the deposits it has mobilized. The low ratio shows banks are not fully utilizing their resources for banking activity.
The Punjab government had already expressed concern over the low deposit ratio in rural sector. It had even told the banks to increase the ratio. The overall CD ratio of Punjab has also reduced by 2.20% to 77.70% as on June 2014.