Banking in Manipur

A bank is an institution which deals mainly in credit by way of accepting deposits of money for the purpose of lending or investment, from the public repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise. The need for a well-developed banking system in the economic life of the state can hardly be exaggerated. Growth of industry and trade has necessitated the development of banks and other financial institutions.

Scheduled Commercial Banks:

Commercial Banks constitute the most important segment of the banking organizations. Their main functions are to accept deposits and to provide short term loans. They also discount bills of exchange and perform a number of subsidiary and general utility functions. In India, Scheduled Commercial Banks are categorized into five different groups according to their ownership and/or nature of operation. These bank groups are (i) State Bank of India and its associates, (ii) Nationalised Banks, (iii) Regional Rural Banks, (iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks (in the private sector).

The total number of scheduled commercial banking offices in Manipur was 77 as on 31st March 2007 of which State Bank of India accounted for 18 offices .Manipur Rural Banks had the highest number of offices in the state with a total of 28 offices, followed by the State Bank of India and United bank of India with 18 and 15 respectively in the state. The number of various commercial banking offices operating in the state excluding Scheduled Cooperative Banks is shown in table which is given below.

Number of Scheduled Commercial Banks and their offices in Manipur (as on 31^st March):

Source: Economic Survey Manipur 2008-09

The Banking scenario of Manipur has undergone a sea-change over the years. There was only 37 (thirty seven) numbers of scheduled commercial bank offices during the year 1981. The number was more than double during the year 1991 and it was recorded as 87 (eighty seven). As on 31st March 2007 there was only 77 (seventy seven) scheduled commercial banking offices in the state. Out of the total number of 77 offices, 44.16 percent were in the rural areas, 25.97 percent in the semi- urban areas and 29.87 percent in the urban areas. As on 31^st March 2007, the average population per bank offices of the state was 38.13 thousands. The distribution of scheduled commercial bank offices of Manipur are presented in table below.

Distribution of Scheduled Commercials Bank Offices of Manipur (as on 31st March):

Source: Economic Survey Manipur 2008-09.

Growth of Deposits and Credit:

The aggregate deposits of Scheduled Commercial Banks in the State during the year 2006 was Rs.1,21,400 lakhs. The volume of the deposits to these banks in the year 2007 was Rs.1,44,000 lakhs which shows an increase of 18.62 percent from that of previous year. The volume of total credit deployed by these banks was Rs.61,500 lakhs as on 31st March 2006 which increased to Rs.76900 lakhs as on 31st March 2007. Thus, an increase of 25.04% was observed in March, 2007 over that of March, 2006. The trends in deposit and credit of scheduled commercial banks of the state over the past few years may be seen in the table which is given below.

Deposits and Credits of Scheduled Commercial Banks of Manipur (as on 31st March):

(Rs. in lakh)

Source: Economic Survey Manipur 2008-09

It will be seen from the above table that the credit deposit ratio (CDR) of scheduled commercial banks in Manipur as on 31st March, 2007 has been worked out at 53.40 percent. as against the ratio of 50.66 percent showing an increase over the previous years. The per Capita deposits of these banks in the state as on 31st March 2006 was Rs.4126 as against Rs.4781 as on 31st March 2007. The Per Capita Credit of these banks in the state was Rs.2556 on 31^st March 2007 showing increase of 22.47 percent over the previous year.

Banking Scenario of Manipur (as on 31st March):

(Rs. in lakh)

Source: Economic Survey Manipur 2008-09