Tripura’s Low CD Ratio Persists as SLBC Withholds Reports; Banking Apathy Hindering State’s Growth

By Our Correspondent

Agartala, July 5, 2025

Despite repeated appeals from the state government and intervention by regulatory authorities, Tripura continues to struggle with a persistently low Credit-Deposit (CD) Ratio, posing a critical threat to its economic expansion, job creation, and financial inclusion. What has further raised eyebrows is the continued non-disclosure of recent State Level Bankers’ Committee (SLBC) meeting reports in the SLBC portal

fueling concerns of lack of transparency and accountability.

The issue was highlighted during the 147th SLBC meeting held on June 11, 2024, at the New Secretariat, chaired by Chief Minister Prof. (Dr.) Manik Saha. According to the figures presented then, Tripura’s CD ratio declined from 54% in March 2023 to just 52% in March 2024. Even with the inclusion of RIDF (Rural Infrastructure Development Fund) loans, the adjusted figure stood at a modest 57%, far below the national benchmark of 70%.

However, despite three subsequent SLBC meetings, authorities have failed to release outcome reports or updated figures, prompting allegations of deliberate withholding of crucial financial data.

A low CD ratio means that a significant share of deposits mobilized from Tripura is not being reinvested within the state. This limits the availability of credit to key sectors like agriculture, MSMEs, and services, hindering rural development and stalling potential micro-enterprises. The ripple effect of this stagnation is being felt most deeply in semi-urban and rural regions, where timely access to institutional finance remains a lifeline for livelihoods.

State government officials during the SLBC meeting raised issues regarding delay in sanctioning loans, reluctance of many commercial banks to take part in rural outreach programs, and lack of implementation in key sectors like housing and education. Yet, critics argue that no punitive action is ever taken against defaulting banks. In fact, some of these banks continue to enjoy large-scale deposits from the state government, despite their poor performance in public service delivery.

Sources allege that several commercial banks have also failed to apply Tripura-specific customizations under flagship schemes like PMAY (Urban and Rural). Business Correspondent (BC) networks remain largely non-functional in many remote areas, weakening efforts toward last-mile financial inclusion.

Among the few bright spots, Tripura Gramin Bank (TGB) has been praised for its proactive role. TGB has implemented PMAY schemes effectively, activated most of its BC points, and maintained regular disbursal under central schemes like PMEGP, PM SVANidhi, and PM Vishwakarma. Its efforts in aligning with the state’s developmental priorities were applauded in the SLBC forum.

Meanwhile, several government-sponsored schemes continue to face bottlenecks. Thousands of loan applications under PMEGP, Swavalamban, and Vishwakarma schemes remain pending or have been rejected without transparent reasoning by some commercial banks, leading to frustration among youth, entrepreneurs, and self-help groups.

Economic experts warn that unless urgent corrective steps are taken, both in policy enforcement and bank accountability, the gap between Tripura’s banking potential and performance will only widen, further delaying inclusive economic progress in the state.

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