CD ratio of PSBs grow to 72.67% in FY08

Written by Pradip Kumar Dey | Mumbai, Jun 9 | Updated: Jun 11 2008, 05:07am hrs
With credit growing by 25.7% during FY08, the credit-deposit (C-D) ratio, the proportion of loan-assets created by banks from the deposits received of 20 public sector banks (PSBs) rose sharply from 71.36% at the end of March 2007 to 72.67% at the end March 2008.

The growth in advances outpaced the growth in deposits of PSBs was due to strong credit demands from corporate, retail and infrastructure segments during FY08, said a banker.

The highest increase in the ratio was in the case of Punjab & Sind Bank, where it increased from 60.76% to 73.87%. In Bank of Indias case, the increase was from 71% to 75.64%.

Indian Bank had a C-D ratio of 61.71% in FY07 which rose to 65.26% by FY08. The credit disbursal of 20 PSBs has taken an upward turn (25.7%) during FY08.

Outstanding credit of these 20 PSBs stood at Rs 13,15,236 crore at the end of March 2008, from the level of Rs 10,46,189 crore as on the same period of the previous year.

Highest increase in credit disbursal was seen in the case of Punjab & Sind Bank (56.3%) followed by Central Bank (40.9%) and Indian Bank (37.1%).

The credit disbursal of P&S bank increased from Rs 11,737 crore as on 31st March 2007 to Rs 18,343 crore as on 31st March 2008.