Now banks have to pass exam to get government deposits | india | Hindustan Times
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Now banks have to pass exam to get government deposits

india Updated: Feb 10, 2012 18:44 IST

The Bihar government has decided to deposit its capital only in banks which pass a test based on the Credit Deposit Ratio (CDR).

"Now banks will require to be successful in the 100 mark test based on CDR for receiving government deposits," Deputy chief minister Sushil Kumar Modi, who also holds the finance portfolio, told reporters after a meeting of the State-level Banking Committee (SLBC) in Patna.

The banks are required to score minimum 33% of the 100 digit Index of CDR, agriculture loan, Kisan credit cards and loan for priority sectors. "The state government will be making deposits only in those banks that fulfill the criteria and emerge successful in the test," he clarified.

Under the set index and parametres, the banks have to score 20 marks in CDR, five marks towrds disbursement in agriculture sector, three% for distribution of Kisan credit cards and five marks in disbursement in priority sectors.

He castigated the banks for poor credit in agriculture sector though the state's economy is based on agriculture.

Modi said the state government would release the ratings every six months of the index and parameters based on the four subjects.

The state government would accord top priority to making deposits the banks which would perform better and obtain good marks, he added.