Nationalized banks facilitate ‘flight of capital’ from JK

Building and sign bank (done in 3d)

Nationalized banks operating in Jammu and Kashmir continue to facilitate ‘flight of capital’ as they lend less money in the state in comparison to deposits accumulated by them.

Official documents reveal that collective credit deposit ratio of 21 public sector banks operating in the state stands at 42.60 percent as on July 2017. This is around 17 percent less than the stipulated CDR of 60 percent set by the RBI.

The deposits collected by the nationalized bank as on July are Rs 26814.31 crore. In comparison to deposits, they have lend only Rs 11422.61 crore, which puts their aggregate CD ratio at 42.60 percent.

The major nationalized banks in JK too are failing to meet the stipulated credit deposit ratio. Figures reveal that Punjab National Bank has CDR of 25.33 as on July. Bank has collected deposits of 6626.8 crore and their advances stood at 1678.24 crore.

State Bank of India has 14730.26 crore as deposits while as their advances as on July 2017 stood at 7460.80 crore, having CD ratio of 50.65 percent.