UP employs tech to plug revenue gapsUP employs tech to plug revenue gaps

Virendra Singh Rawat

Uttar Pradesh is targetting to achieve a credit deposit (CD) ratio of 65 percent in the next financial year 2024-25 to boost its vision of becoming a $trillion economy.

At present, the state CD ratio is nearly 59 percent, which is below the federal CD ratio of 80 percent.

UP chief minister Yogi Adityanath has exhorted banks to be liberal in giving loans and supported the holding of ‘loan melas’ to boost the credit offtake.

Easy flow of loans to agriculture, industry, housing, MSME etc is expected to propel UP as India’s first $trillion economy.

On Feb 19, Prime Minister Narendra Modi launched 14,000+ projects totalling Rs 10 trillion at a groundbreaking ceremony in Lucknow.

CD ratio reflects how much of the money raised by banks as deposits is deployed as loans. A high CD ratio shows liquidity and availability of funds for industry.

Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat and Karnataka are among the leading states with high CD ratio with some having it more than 100 percent.

Meanwhile, the total banking business in UP has jumped from Rs 12.80 trillion in 2016-17 to Rs 26.80 trillion at present.

In 2016-17, the banks disbursed loans worth Rs 1.37 trillion in UP, which increased to more than Rs 3 trillion in 2022-23. Till December 2023 (FY24), the advances stood at more than Rs 2.98 trillion.

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