Patna, Feb 12: Reserve Bank of India Governor Y V Reddy said on Wednesday more branches of nationalised banks would be opened in Bihar and efforts would be made to improve the Credit-Deposit ratio of the State. "I have promised Chief Minister (Rabri Devi) that more branches of nationalised banks would be opened in the State and effective measures would be taken to improve the CD ratio," he told reporters after an hour-long meeting with the Chief Minister and senior State officials.

Predicting a drop in the inflation rate, Reddy ruled out any change in the bank interest rates in the near future.

Chief Secretary K A H Subramania, later told reporters the RBI Governor was informed that 48 blocks of Bihar had no nationalised banks. "We cannot expect the CD ratio to go up when banks have not reached far-flung areas of the State," he said. Subramania said the CD ratio was just 25 per cent in Bihar against the national average of 57 per cent.

Subramania said the nationalised banks should play a more cooperative role in the event of the Bihar Government floating bonds as the State Government had never defaulted in repayment.