Banking & Finance

Spread of Banking – All India and State level
The total number of bank branches in Kerala as on March 2020 is 7576 which includes public sector commercial banks, private sector commercial banks, regional rural banks, small finance banks and co-operative banks as per the State Level Bankers Committee (SLBC) data. Of the total number of bank branches 65.1 per cent branches are in semi-urban area and 23.2 per cent are in urban area. Only 11.7 per cent are in rural area. As per SLBC report, Kerala has a total of 6,353 scheduled commercial bank branches (which includes only public sector commercial banks, regional rural banks and private sector commercial banks) in March 2020 as against 6,284 bank branches in March 2019, which shows a marginal increase of 1 per cent. The total number of branches of Kerala Gramin Bank is 634 as on March 2020. As per RBI Quarterly Statistics, in March 2020, the total number of bank branches all over India is 1,48,904. Uttar Pradesh has the largest number of bank branches (17,539) followed by Maharashtra (13,114) and Tamil Nadu (11,523). Kerala has the largest number of bank branches (4,716) among the semi-urban areas in the country.
Credit-Deposit Ratio
Kerala has a low Credit Deposit ratio (CD Ratio) among Indian states. The CD ratio of Kerala as on March 2020 is 67.25 per cent. The Credit-Deposit (CD) ratio of Scheduled Commercial Banks at the end of March 2020 shows a decrease according to the RBI quarterly statistics. As on March 2020, the CD ratio is 76 per cent in India while it was 78.18 per cent in March 2019. Andhra Pradesh maintains the highest CD ratio (123.84) in March 2020. Tamil Nadu (107.26 per cent) Maharashtra (102.59 per cent) and Telangana (102.21 per cent) also have a high CD ratio when compared with other States in India.
Co-operative banking sector in Kerala
Co-operative banks in Kerala have been playing a central role in providing credit facilities to different segments of the economy. Around 13 per cent of the total bank branches are in the co-operative sector. As on March 2020, there are 992 co-operative bank branches in Kerala. Of the total 992 branches, 457 are in rural area, 276 are in semi-urban area and 259 are in urban area.
Non-Banking Financial Institutions
(a) Kerala State Financial Enterprises (KSFE)
Kerala State Financial Enterprises (KSFE) is a fully owned Government Miscellaneous Non-Banking Finance Company (MNBC) which was incorporated in 1969. The major business segments of KSFE may be classified as chitty, loans and advances and deposits. The aggregate monthly turnover as on March 2020 is ₹23,895 crore. The company has ₹3,043 crore as chitty security deposit and ₹2,122 crore as free deposits. In 2019, the company opened 2 regional offices at Palakkad and Pathanamthitta and started 18 new branches.
(b) Kerala Financial Corporation (KFC)
Kerala Financial Corporation (KFC) incorporated under the State Financial Corporations Act of 1951, plays a major role in the development and industrialisation of Kerala. Net profit of KFC increased to ₹18.4 crore in March 2019-20 from ₹17.7 crore in March 2018-19. The corporation has proposed few schemes to encourage entrepreneurship in the State. Government have approved a programme called ‘Chief Minister's Entrepreneurship Development Programme (CMEDP).
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Source : Economic Review 2020