Banks in Himachal advance Rs 11,087 Crore Credit in 2015-16

Himachal is a cash deposit state, where credit offtake is far short of the money deposits with Banks

Shimla: Bankers in Himachal Pradesh reported having disbursed Rs 11,087 fresh credit under the 2015-16 Annual Credit Plan which constituted 98% of the target set out for the financial year.

Mr. Charan Singh executive director UCO Bank states at close of the 4th quarter of the financial year at the state level bankers meet disclosed that fresh credit had been handed out to 408139 new units in the state.

Of the total credit disbursed, Rs 803 crore had been advanced to more than 64 thousand micro and small entrepreneurs under the Pradhan Mantri Murdra Yojan.

“Total business of all the banks in Himachal Pradesh by December 2015 had crossed Rs 1.13 lakh crores,” said Mr. Singh.

He also informed that there were 1973 bank branches in the state, and more than 80 % of them were operating in rural areas.

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Mrs Manisha Nanda, additional chief secretary, who from the government side reviewed the banking sector performance at the meet expressed her concern at the low credit deposit (CD) ratio in the state. “Stakeholders should put more efforts to improve it,” said Ms Nanda.

In her inaugural address she said that a Rs 1,115 crore World Bank funded project ‘Himachal Pradesh-Horticulture Development Project’ would be implemented in the state over the next 7 years to boost productivity.

She asked the the banks to encourage lending for protective farming by financing the poly houses and rejuvenating of old apple orchards with high yield plants.

Ms Nanda also pointed out that to boost investments in the state the government in the 2016-17 has announced setting up of a Multi Department Bureau of Investment to ensure clearances and new initiatives taken up under the ‘Chief Minister Start Up/New Industries Scheme.’

The scheme proposes quick registration, land at concessional rate and other benefits, she said.

The meeting was also attended by Mr I.S. Negi, Regional Director, Reserve Bank of India, Mr P. Radhakrishan Chief General Manager NABARD, Senior Officers of State Government and Representatives of various Boards, Corporation, Insurance Companies and Banks.

As Editor, Ravinder Makhaik has nurtured Hill Post for over a decade. A chequered path had him drift from managing family owned apple orchards, to turning a documentary filmmaker, to a journalist - with India’s leading television networks and newspapers, to boot strapping in founding Start-Ups. He lives in Shimla.

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