CDR in Bihar inches up to 39.42% till Dec: Sushil Kumar Modi

PATNA: In an indication of an increase in lending by banks to consumers in various sectors, the Credit Deposit Ratio (CDR) in Bihar has inched up to 39.42 per cent till December 2012, Deputy Chief Minister Sushil Kumar Modi said today.

"There has been a significant improvement in loan disbursal by the banking institutions during the past few quarters as a result of which the CDR has increased to 39.42 per cent till December 2012", he told reporters after presiding over the State-Level Bankers Committee (SLBC) meeting here.

Even if one takes out the loans being provided by the NABARD under the Rural Infrastructure Development Fund (RIDF) to the state government, the CDR has grown up at 37.53 per cent, Modi said.

At the same time, banking institutions have sanctioned Rs 5,218 crore loan from its branches outside Bihar for investment in the state that augurs well for our economic development in time to come, the Deputy Chief Minister said.

Modi, who also holds the finance portfolio, lauded the public and private sector banks for increased loan disbursal at 78 per cent of the target set for them in the ongoing fiscal and implementation of the state government's agenda for financial inclusion of the people in remote areas of the state.

Similarly, the banks' performance on loan disbursal to the general consumers, agriculture and Micro Small and Medium Enterprises (MSME) sectors have been satisfactory during the first three quarters of this fiscal and accordingly the state government has increased the next year's lending target to the banks at about Rs 40,000 crore, he said.

Modi also lauded the banks for taking its services in rural Bihar in a big way by recruiting business correspondents and setting up ultra small branches in villages/habitats with base population of up to 1,600 people and 5,000 people and said that the progress has been good in this regard.