Tarun Gogoi to take up low credit deposit ratio issue in bankers meet

GUWAHATI: Assam chief minister, Tarun Gogoi will take up the issue of low credit deposit ratio in Assam during the special state level bankers committee (SLBC) meeting on Thursday.

The special SLBC will be attended by bigwigs of banks and RBI Governor, Dr D Subbarao. Sources in finance department told ET, "The CD ratio of Assam is around 46 percent whereas the national average is 75 percent. Pre capita credit is also very low in Assam."

Sources pointed out that despite credit guarantee scheme banks are insisting on collateral from the Micro, Small and Medium Enterprises (MSME) which again in violation of the RBI guidelines.

Assam will make a strong case for bank branches expansion. The state will demand opening of at least 700 more bank branches to meet the growing requirement of subsidy disbursements and other cash transfers of the government schemes.

Presently the state has over 1700 bank branches.