466 new bank branches opened in MP in one year

About Rs. 2.50 lakh crore deposits in banks
Credit deposit ratio higher than national norm

Number of bank branches is constantly increasing in Madhya Pradesh. As compared to March 2013 as many as 466 new bank branches have been opened till March 2014. These include 182 in rural, 136 in semi-urban and 148 bank branches in urban areas. The state has total 6415 bank branches including 2730 in rural areas, 1975 in semi-urban and 1710 in urban areas. Of these, 4102 branches are of commercial banks, 1121 cooperative banks and 1192 branches of regional rural banks.

Deposits increase

State’s bank branches have total deposits of Rs. 2 lakh 49 thousand 525 crore as on March 2014, which is Rs. 28 thousand 836 crore more than Rs. 2 lakh 20 thousand 689 deposited in March 2013. This shows economic progress and increasing prosperity of the state. This also shows that more money is being earned by people than earlier. This also suggests increased circulation of domestic savings in fiscal market through banking.

Credit deposit ratio

Credit deposit ratio in Madhya Pradesh is 66 percent as on March 2014, which is higher than the national norm of 60 percent. Similarly, advances in priority sectors in the state are 59 percent as compared to national norm of 40 percent. In total advances, agriculture advances in the state are 34 percent as compared to national norm of 18 percent. Total advances given to the weaker sections in the state were 13 percent against 10 percent national norm.

Till March 2014, total Rs. one lakh 64 thousand 877 crore advances were given in the state including Rs. 55 thousand 681 crore in agriculture sector, Rs. 22 thousand 937 crore to small industries and Rs. 21 thousand 271 crore to weaker sections.

Financial inclusion

Work on financial inclusion is in progress at a rapid pace to make available maximum banking facilities in rural areas of the state. Financial inclusion activities have been started in 2736 identified villages having over 2 thousand population. Madhya Pradesh has been conferred prestigious Skoch Financial Inclusion and Deepening Award 2014 for better performance in financial inclusion sector.

Ultra small banks are being opened in every 5 kilometer radius in rural area with a view to extending maximum financial inclusion benefits to rural people. These banks have transacted over Rs. 1500 crore business.