Poor loan disbursement by banks in state

Abhay Singh,
 11 December 2009, 05:32am IST

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PATNA: Nationalised commercial banks operating in the state
have a stupendous task of meeting the target of loan disbursement
 as part of annualcredit plan (ACP) during the current
fiscal since only 36.86% of the target has been achieved till September end.

This transpired during the 30th State Level Bankers' Committee
 (SLBC) meeting held in a premier hotel here on Friday.

Deputy CM Sushil Kumar Modi, who is also the state's finance minister
, said that the target for loan disbursement under ACP was Rs 21,127.79 crore,
but loan worth only Rs 7,788.53 crore could be disbursed by the banks
till September during the current fiscal.

This has affected the Credit-Deposit (C-D) ratio of the state,
 which has been showing a declining trend since the 2007-08 fiscal.
 "We have asked the banks to raise the C-D ratio to 40% during the next
 fiscal," Modi said, adding that the state's C-D ratio during the current
 fiscal till September was 30.99%.

The total deposits made within the state in various nationalised
 banks was Rs 93,244 crore till September end, while only Rs 30,412 crore
 had been credited to people concerned. It means that the banks have
 invested the remaining around Rs 63,000 crore outside the state.

Significantly, none of the private banks has disbursed even a single
penny as loan, Modi said and added the target regarding loan disbursement
 for the ICICI bank was Rs 371 crore and for the HDFC Bank Rs 183 crore.

They, however, may have to change their policies with regard to loan
disbursement, given the strict directive of the government.

The volume of educational loan given to students had increased.

Till September 30 during the 2008-09 fiscal,
loans worth Rs 252 crore were given to 8,582 students,
 but the corresponding figures during the current fiscal
were Rs 362 crore and 10,563 students. Modi said the bankers
agreed to lower the interest rate on loans given to girls by 1%.

Even as the volume of crop insurance on agricultural loans given to
 farmers had increased, the quantum was still low. The target regarding
issuance of Kisan Credit Cards to farmers was 15 lakh, but only 4.72 lakh
 farmers had got it till November.

Source:TOI-PATNA