Date:12/01/2008 URL: http://www.thehindubusinessline.com/2008/01/12/stories/2008011252730100.htm

Back Top 100 centres dominate in bank credit and deposit share

Our Bureau

Mumbai, Jan 11 Despite the rhetoric of financial inclusion, the top 100 centres in the country dominate in terms of credit and deposit.

As per the ‘Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks – September 2007’ released by the RBI, today, the share of these centres has increased both year-on-year and sequentially from March 2007.

The share of the top 100 centres in credit has gone up from 75.9 per cent in September 2005, to 76.7 per cent in September 2006 and to 77.2 in September 2007.

Similarly in deposits, the share of the top 100 centres has gone up from 66.2 per cent-September 2005, 67.9 per cent-September 2006 and 69.6 per cent-September 2007, according to RBI figures.

The RBI report also said that nationalised banks, as a group, accounted for 47.9 per cent of the aggregate deposits, while State Bank of India and its Associates accounted for 22.6 per cent.

The share of other scheduled commercial banks, foreign banks and Regional Rural Banks in aggregate deposits was 20.3 per cent, 6.1 per cent and 3.0 per cent, respectively.

As regards gross bank credit, the share of nationalised banks was the highest at 47.0 per cent, followed by State Bank of India and its Associates at 22.9 per cent and other scheduled commercial banks at 20.6 per cent.

Foreign banks and RRB had relatively lower share in the total bank credit at 6.8 per cent and 2.6 per cent, respectively.

At the all India level, the credit-deposit (C-D) ratio of all scheduled commercial banks as on last Friday of September 2007 stood at 71.5 per cent. Among the States/Union Territories, the highest C-D ratio was observed in Tamil Nadu (109.8 per cent) followed by Chandigarh (100.2 per cent). At the bank group level, foreign banks had the highest C-D ratio at 79.9, which was higher than the all-India ratio.