Bhubaneswar: CM dissatisfaction over PSU Banks

BHUBANESWAR: Chief Minister Naveen Patnaik on Thursday expressed dissatisfaction over the performance of the public sector banks in terms of extending credit to the priority sector in the State.  Taking part in the 124th State level Bankers’ Committee meeting here on Thursday, Patnaik voiced his anguish over the reluctance of banks to provide finances to the agriculture sector. Lending by the PSU banks to agriculture has been a mere 20 per cent of the target fixed for the first quarter of the current 2011-12 fiscal while the performance under the Annual Credit Plan (ACP) during the quarter was equally dismal. Against the target of disbursement of ` 8,832 crore, the achievement has been only 34 per cent.“Performance of a large number of public sector banks under ACP, more specifically to the agriculture sector, can hardly be reckoned as satisfactory. With such a huge shortfall in performance during the first quarter, how are we going to achieve our overall target in the year,” he asked. Pointing at the per capita credit, he said that while the national average was over ` 28,000, in Orissa it was only around Rs.11,000. The Western States had a high per capita credit at an average of  Rs.67,000 while the northern ones had Rs.48,000. The banks should step up their lending to catch up with the rest of the country. The Chief Minister also pointed to the huge rural and urban divide. While the overall credit deposit ratio of public sector banks was only 48 per cent, the corresponding ratio for urban branches was 72 per cent. He also called upon the banks to intensify the financial inclusion initiatives and cover each and every habitation of the State either through regular branches or through business correspondents by the end of the year. With inadequate infrastructure of the formal banking sector, it is difficult to even disburse wages under the programmes like the MNREGA. “Our stated policy of social inclusion cannot be achieved unless we ensure total financial inclusion. The Government is ready to render all assistance to the banks in this regard,” the Chief Minister said. Finance Minister Prafulla Chandra Ghadei, Chief Secretary BK Patnaik, UCO Bank CMD and SLBC Chairman Arun Kaul spoke.