For the first time in several decades, banks’ credit-deposit (CD) ratio in Bihar has crossed the mark of 35%, and stood at 36.51% in the first quarter of the current fiscal, ended June 30. However, this has been possible due to a change in the norm for computation of the ratio. But for this change, the ratio would still be 34.40%.
The state’s 36.51% CD ratio is a tangible improvement over that recorded in the past five fiscals even under the Nitish Kumar government. The ratio was 33.81% in 2006-07, 32.35% in 2007-08, 28.96% in 2008-09 and 30.30% in 2009-10. In 2010-11, it was 33.99%, but this included the money utilized from Rural Infrastructure Development Fund (RIDF) of the National Bank for Agriculture and Rural Development (Nabard).
The latest CD figure of 36.51% has been reached at in accordance with the new guidelines of the Reserve Bank of India (RBI), which, in April this year, asked the bankers to take into account both the advances made to borrowers and the fund utilized under RIDF.