Banks from Dakshin Kannada district have not been able to achieve the RBI mandated credit deposit ratio. Credit deposit ratio is the proportion of loan-assets created by banks from the deposits received. The higher the ratio, the higher the loan-assets created from deposits.

Almost 399 branches of various banks in the district achieved a CD ratio of 56.34,as against the rthe RBI-mandated 60, with deposits of Rs 13,082.48 against loans worth Rs 7,371.70 crore.

PD Ravikumar, lead district officer, RBI blamed the bankers for not achieving the required credit deposit ratio. He said "Somehow, there seems to be a generic reluctance on part of the bankers here not to achieve the CD ratio mandated by the apex bank." He pointed out that the more the banks lend, the more will it spur the economic growth.

The officer also criticized banks' failure to comply with differential rate of interest (DRI) norms. Under DRI scheme, customers from lower income group can avail loans to the extent of Rs. 35,000 for 4 percent rate of interest. The income ceiling for those in rural areas is Rs 18,000 per annum, and for those in semi-urban, and urban areas Rs 24,000. Such people can avail Rs 20,000 for housing and rest for income generation activity.

Ravikumar said that the banks are not acting on the revised RBI norms. He reminded the bankers that the apex bank had recently thrown open the housing sector under the DRI scheme. He said that the RBI and the government wanted the banks to meet the targets. He added that banks must take greater initiatives to comply with the revised norms.