Dhanlaxmi Bank: Kerala govt concerned over declining CD ratio

Thiruvananthapuram: The Kerala government today expressed concern over the declining credit-deposit ratio of Dhanlaxmi Bank and said it will approach the Finance Ministry and RBI to “sustain” the lender’s operations while keeping company headquarters in the state itself.

[caption id=“attachment_113736” align=“alignleft” width=“380” caption=“The bank’s credit-deposit ratio and profit have declined in recent years. dhanbank.in”]  [/caption]

“The Kerala government will approach the Finance Ministry and RBI to take steps to sustain the state-based bank and also to keep its headquarters in the state,” Rural Development Minister KC Joseph told the State Assembly in response to a question from former Finance Minister TM Thomas Issac.

Joseph said the bank’s credit-deposit ratio and profit have declined in recent years. Though Kerala has no control over the bank’s functioning, it will approach the Centre and RBI to sustain the bank in the state, he said.

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Issac has alleged that a major chunk of the bank’s shares has now gone into the hands of some big corporates.

PTI