Hike in Bengal’s credit-deposit ratio linked to investments

By IANS,

Kolkata : Stating that the low credit-deposit (CD) ratio of West Bengal is a matter of concern, Reserve Bank of India (RBI) Governor D. Subbarao Thursday said that raising the ratio substantially will depend on big corporates deciding to invest in the state.


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“There was a concern that the CD ratio in West Bengal is lower than the all-ndia average of 74 percent. West Bengal has attained 62 percent (CD ratio) in September…understandably, there is concern,” Subbarao told reporters here.

“But we also reached an understanding that the CD ratio will be taken up much higher for 2012-13. Banks did of course say that it is difficult to raise the CD ratio substantially, unless there is big corporate investment in West Bengal. Raising the CD ratio substantially will depend on big corporates deciding to invest here,” he said.

The banks operating in the state will endeavour to achieve a CD ratio of 65 percent by the end of March 2012.

The federal bank’s chief said a team of officials of the state government, banks and the RBI will conduct a survey in four districts of West Bengal – Murshidabad, Howrah, Malda and North 24-Parganas – to get clear picture about loans availed by general credit card holders.

The survey would be completed by end-December.

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