A signboard of Nagaland Rural Bank wishing travellers ‘safe journey’ at the outskirt of Mokokchung town in Nagaland. (Morung file Photo)
Our Correspondent
Kohima | February 10
The overall Credit-Deposit (CD) ratio in Nagaland State continued to be low at 46.71% as on March 31, 2025, which has slightly decreased in comparison to that of 31% March 2024, which stood at 57.58.
With the National average at 80% and the minimum stipulated requirement of 60%, the continuously low CD ratio of the State is a matter of serious concern.
The details were projected in the State Focus Paper 2026–2027 released by National Bank for Agriculture and Rural Development (NABARD), Nagaland Regional Office, Dimapur during the State Credit Seminar 2026 held in Kohima on February 3 last.
The CD ratio of Nagaland State Cooperative Bank Ltd which has been the highest among the major banks in the State increased from 66.93 as on March 31, 2024 to 68.68 as on March 31, 2025.
The CD ratio of Commercial Banks, which was 56.35 as on March 31, 2024 registered a sharp decline to 43.93 as on March 31, 2025.
The CD ratio of Nagaland Rural Bank registered an increase to 46.21 as on March 31, 2025 from a level of 44.21 as on March 31, 2024.
As per SLBC data as on March 31, 2025, Niuland district registered the highest CD Ratio at 201.14 followed by Shamator at 158.36 and Kiphire at 156.77.
Of all the districts, Kohima and Dimapur registered the lowest CD ratio at 29.43 and 64.48 respectively.
The reasons for the low level of credit flow has been attributed to poor development of infrastructure, low level of industrialization, restrictive land ownership structure along with skewed and overall poor branch network in the State.
As on March 31, 2025, the total deposits mobilized by banks in the State was Rs 18792.78 crore.
Commercial banks accounted for the major share of deposits at Rs 17449.75 crore followed by NStCB at Rs 1147.64 crore and NRB at Rs 170.06 crore.
Total advances extended by banks in the state was Rs 11269.08 crore excluding RIDF as on March 31, 2025. Commercial banks accounted for the major share of the advances with Rs 10394.85 crore followed by NStCB at Rs 788.20 crore and NRB at Rs 78.59 crore.
The State Focus Paper highlighted the banking sector profile for the state of Nagaland in detail. Banking services in the State are provided through a network of 249 branches of which 205 branches are located in rural and semi urban areas.
The State Bank of India with its network of 73 branches is the Convener of the State Level Bankers Committee (SLBC) and also the Lead Bank in all the districts of the State - except Chümoukedima.
SBI has two Regional Business Offices located at Dimapur and Mokokchung respectively.
The controlling offices of the remaining Commercial Banks are based either in Assam (Jorhat, Dibrugarh and Guwahati) or at Kolkata.
The Nagaland State Cooperative Bank Ltd has its head office in Dimapur while the head office of Nagaland Rural Bank in Kohima.
