PSBs post better C-D ratio than private banks

With credit growing 18.8% during 2009-10,credit-deposit ratio of 18 public sector banks rose to 73.51% at....

Written by PK Dey | Mumbai | Published:August 20, 2010 1:40 am

With credit growing 18.8% during 2009-10,credit-deposit (C-D) ratio of 18 public sector banks (PSBs) rose to 73.51% at the end March 2010 from 71.98% in March 2009. On the other hand,the ratio of

nine private banks dropped from 80.74% to 78.95% with credit growing 8% during the same period. Deposits of PSBs grew 16.3% as against 10.4% registered by their

private peers.

While saving deposit growth of private banks was higher than the PSBs,term deposit growth of the latter was positive,at 12.7%,as against a decline of 2.1% in private banks. But the demand deposit growth was higher for PSBs compared to private banks during 2009-10.

Among the PSBs,Syndicate Bank reported the highest rise in the C-D ratio,from 70.36% to 77.25%.

SBI’s ratio rose from 73.11% to 78.58% while Dena Bank had a C-D ratio of 69.07% in 2009-10,surged from 67.08% in 2008-09.

Simultaneously,the credit disbursal of the PSBs has taken an upswing last fiscal. Outstanding credit of the PSBs stood at Rs 18.76 lakh crore in March 2010. The figure stood at Rs 15.79 lakh crore during the same period of the previous year.

Punjab & Sind Bank recorded the highest credit disbursal (to Rs 32,639 crore from Rs 24,615 crore),followed by Andhra Bank and Union Bank .

Aggregate deposits of these banks increased 16.3% to Rs 25.52 lakh crore from Rs 21.94 lakh crore in March 2009. Highest deposit growth,once again,was reported by Punjab & Sind Bank,followed by Andhra Bank and

Bank of Baroda.

The aggregate deposit of P&S Bank increased from Rs 34,675 crore as in March 2009 to Rs 49,155 crore in March 2010. In saving deposits,Union Bank of India rules the chart,followed by State Bank of Bikaner & Jaipur.

“The growth in advances outpaced the growth in deposits of PSBs as there was strong credit demands from corporate,retail and

infrastructure segments during 2009-10,” according

to a banker.

On the other hand,the C-D ratio of YES Bank increased from 76.71% to 82.81%,highest among the private banks. HDFC Bank had a C-D ratio of 69.24% in 2008-09 that rose to 75.17% in 2009-10. However,the ratio of ICICI Bank

decreased from 99.98%

to 89.70%.

Outstanding credit of nine private banks stood at Rs 5.01 lakh crore at the end of March 2010,a rise from Rs 4.64 lakh crore in March 2009. Highest increase in credit disbursal was registered by YES Bank,followed by South Ind Bank.

The aggregate deposits of these private banks increased by 10.4% to Rs 6.35 lakh crore as against the year-ago Rs 5.75 lakh crore. Once again,YES Bank registered the highest deposit growth,followed by Karur Vysya Bank. In saving deposit also,YES Bank showed the highest growth of 103.6%.

During 2009-10,the top three private banks in terms of C-D ratio were ICICI Bank,YES Bank and IndusInd Bank. Among PSBs,the top three were SBI,Syndicate Bank and State Bank of Bikaner & Jaipur.

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