Banks Urged To Raise CDR To Improve Credit Offtake

New Delhi, January 21: | Updated: Jan 22 2003, 05:30am hrs
Banks and leading institutions need to increase the credit-deposit ratio to improve the credit offtake by industry so that new investments flow into the real sector and boost infrastructure projects, exports and small and medium enterprises (SMEs), according to the Associated Chambers of Commerce and Industry (Assocham).

The chamber has also called for a transparent system of credit rating by banks. The rating should be disclosed to the concerned borrower and done in a holistic manner, it said in a release. Assocham has suggested banks to treat borrowing corporates as life partners in the growth process and frankly discuss relative issues. Corporates should also share their concerns or problems in a straightforward manner to elecit the banks assistance.