By IANS,
Patna: Unhappy over the apathy of private banks to increase the credit deposit ratio in Bihar, state Finance Minister Sushil Kumar Modi, who is also deputy chief minister, has directed officials not to deposit government money in private banks.
Modi Monday admitted in the state assembly that private banks are not interested to increase the credit deposit ratio (CD) in Bihar as it appeared from their style of functioning.
“Private banks are not keen to increase CD ratio in Bihar despite repeated request to improve the CD ratio,” the minister said.
Modi informed the assembly that the state government had decided in principle not to deposit its money or funds in any of the private banks due to their non-cooperating attitude.
He said the state’s annual credit plan for the next financial year would stand at Rs.40,500 crore, which was up by almost Rs.3,000 crore from the target fixed for the current fiscal.
“We are consistently trying to further improve the CD ratio and holding regular meeting of state level bankers committee exhorting the need for achieving their respective targets,” Modi said.
Last month Modi had expressed his concern over the issue and asked the banks, including private banks, to increase the ratio from 31 percent in current financial year to 35 percent in the next year.
Early this year, RBI Governor D. Subbarao, during his visit to Bihar, had asked the banks in Bihar to achieve that target as the CD ratio is very low in the state compared to other states.