Banks in Himachal fix Rs 7615 Cr credit target for 2011-12

Shimla: Annual credit plan by banks has been increased by as much as 29 percent for 2011-12, laying the credit disbursement target for the next financial year at Rs 7615 Crores, chief secretary Rajwant Sandhu stated here today.

Presiding over the State Level Bankers Committee meeting here today, Sandhu said that the state gross domestic product (SGDP) was expected to touch 9 percent in 2010-11 and many new initiatives had been announced for 2011-12, in the new budget.

The government was intent upon giving a boost to the rural economy and she asked the banks to support the state in agriculture, roads and bridges, education and hydropower sectors.

The chief secretary urged the banks to focus upon transparent implementation of interest subvention scheme and encourage farmers to avail additional 2 percent interest incentive on regular repayments as proposed by the central government.

Making an appeal to all stake holders about the need for covering the entire state under financial inclusion, she said that it would provide the benefits of banking services being made accessible to all state residents.

Whereas 73% of state households covered under revolving credit schemes through a network of 1461 bank branches, they had issued 4.18 lakh Kisan Credit Cards and formed 55,000 Self Help Groups, she said.

In the last quarter, ending December, 2010, banks opened 22 new branches in Himachal.

To speed up and make the disbursement of social security pension more transparent, the chief secretary asked banks to expedite issuing of biometric or smart cards to the beneficiaries.

Decision of banks for distribution of social security pension to all eligible beneficiaries at the door step through ICT based Business Correspondent outlets by mode of Bio-metric cards covering the entire state was a vital project and would facilitate the old age pensioners, said Sandhu.

Arun Kaul, Chairman and Managing Director, UCO Bank said that fresh loans worth Rs 5051 crore were sanctioned to benefit around 2.36 fresh units during the current fiscal upto December, 2010.

Others present at the meeting included Anil Bakshi, General Manager UCO Bank. Ram Subhag Singh Secretary Agriculture, KK Pant, Secretary Finance, AD Ratnoo, Chief General Manager NABARD, SK Bal, General Manager Reserve Bank of India and representatives from various banks.

As Editor, Ravinder Makhaik leads a team of media professionals at Hill Post. Spanning a career of over two decades in mass communication, as a Documentary Filmmaker, TV journalist, Print Media journalist and with Online & Social Media, he brings with him a vast experience. He lives in Shimla.

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1 Comment

  1. says: Devinder K. Sharma

    The key question in this game should be whether 29 per cent increase in the credit target is leading to improving the CD ratio (Credit to Deposit Ratio) or not. If the deposits grow by a number higher than 29 per cent then the growth in credit advancement is not significantly material. The SLBC should endeavour to raise the CD ratio to a level higher than the national average to stop the flight of capital from underdeveloped States to States like Gujarat and Maharashtra. The other relevant question is the matrix of the credit advancement portfolio. Is it genuinely attempting to internalize the much hyped farm sector priorities of the State Government?

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