report of the working group on improvement of banking services

24
Chapter 3
BANKING NETWORK, FINANCIAL INCLUSION AND
ROLE OF BANKING SYSTEM IN SUPPORTING
ECONOMIC DEVELOPMENT OF LAKSHADWEEP
3.1 The islands in <strong>the</strong> UTL are considered as one district for <strong>the</strong> purpose <strong>of</strong> banking development under <strong>the</strong>
Lead Bank Scheme. Syndicate Bank is <strong>the</strong> main bank in <strong>the</strong> UTL with nine branches in nine islands viz. Agatti,
Androth, Amini, Chetlat, Kadmat, Kalpeni, Kavaratti, Kiltan and Minicoy. Thus, <strong>the</strong>re is one branch each <strong>of</strong>
Syndicate Bank in each <strong>of</strong> <strong>the</strong> nine islands with significant population figures. Bitra has a population <strong>of</strong> only
267 and Bangaram being a tourist island has floating population. The population <strong>of</strong> Bitra is serviced by Chetlat
branch. The average population per branch is 6060 as against <strong>the</strong> all India average <strong>of</strong> about 16,000. In terms
<strong>of</strong> overall coverage <strong>the</strong> banking network extends to whole <strong>of</strong> <strong>the</strong> UTL.
As <strong>the</strong> major bank in <strong>the</strong> islands, Syndicate Bank is <strong>the</strong> Convenor <strong>of</strong> Union Territory <strong>of</strong> Lakshadweep
Bankers' Committee (UTLBC). In 2005 State Bank <strong>of</strong> India opened a branch at Kavaratti, <strong>the</strong> capital <strong>of</strong> <strong>the</strong>
UTL. There are presently no RRBs or State / District Central Co-operative Bank in <strong>the</strong> islands.
Performance <strong>of</strong> Banks
3.2 The performance <strong>of</strong> banks in areas <strong>of</strong> deposit mobilisation and credit dispensation in <strong>the</strong> UTL during <strong>the</strong>
last 6 years toge<strong>the</strong>r with <strong>the</strong> latest position as on September 30, 2007 is as under:
Table 3.1
(Rs. in Crore)
Particulars 2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-07 30.9.200
7
Total Deposits 67.91 110.77 95.25 94.38 130.30 205.06 236.25
Total
5.47 5.67 7.19 9.12 11.46 20.90 23.08
Advances
CD Ratio % 8.5 5.11 7.60 9.66 11.25 10.19 9.80
Priority Sector 2.11 2.20 2.59 3.40 5.73 8.15 9.25
Advances
Agricultural
Advances
0.65 0.52 0.76 0.98 1.68 1.86 2.12
It would be observed from <strong>the</strong> above that <strong>the</strong> deposits grew from Rs.67.91 crore in 2001-02 to Rs.205.06 crore
in 2006-07 <strong>of</strong> which Rs.126.88 crore represents Government deposits. There was a quantum jump in <strong>the</strong>