8 districts in J&K fall short of 60% Credit-Deposit Ratio target

Srinagar, Jan 3: The Jammu and Kashmir Union Territory Level Bankers' Committee (UTLBC) has revealed that eight districts are struggling to meet the prescribed Credit-Deposit (CD) ratio target of 60%, according to data as of September 30.

The target was set during the 11th UTLBC meeting held on October 3, 2023, aiming to achieve a 60% CD ratio across all districts in the Union Territory. However, the latest figures show significant variations in performance across different regions.

Shopian district leads with the highest CD ratio of 145%, followed by Kupwara at 135%. Other high-performing districts include Pulwama (110%), Budgam (106%), and Baramulla (101%). The capital district Srinagar maintains a healthy ratio of 73%.

Concerns arise from the performance of several districts, particularly Jammu, which reports the lowest CD ratio at 39%. Other districts falling below the target include Reasi (51%), Poonch (52%), Kathua (52%), Udhampur (52%), Rajouri (55%), Samba (57%), and Kishtwar (58%).

The data reveals a stark contrast between regions where J&K Bank and SBI serve as lead banks. Districts under J&K Bank's leadership generally show stronger performance, with most maintaining CD ratios above 70%. However, districts under SBI's leadership demonstrate more challenging figures, with several marked as "Low CDR" in the official report.

The highest deposit base is recorded in Srinagar at `36,190.96 crore, while Bandipora shows the lowest at `1,828.42 crore among the listed districts. This disparity highlights the economic variations across the Union Territory's regions.

The UTLBC continues to monitor these ratios as they serve as crucial indicators of banking sector performance and economic activity in the region.