Southern States - Karnataka

Help recover dues, say banks

By Our Special Correspondent

BANGALORE June 28. The Syndicate Bank Chairman and Managing Director, M.S.Kapur, on Friday urged the Karnataka Government to assist banks in loan recovery under priority sector.

In his keynote address at the 82nd State-level Bankers' Committee Meeting here today, Mr. Kapur, who is also the chairman of the committee, expressed concern over banks with high percentage of dues and also non-performing assets under priority sector lending, particularly in respect of government-sponsored schemes.

Mr. Kapur appealed to the Government to help banks recover dues in respect of applications filed under Revenue Recovery Act.

He said that as on March 31, nearly 1.56 lakh applications filed by banks under Revenue Recovery Act were pending for disposal involving Rs. 130 crore.

Mr. Kapur said that in 2001-02 banks disbursed Rs. 6,592 crore under priority sector as against the annual target of Rs. 6,638 crore, achieving 99.30 per cent of the target. Under the farm sector, banks distributed Rs. 4,234 crore as against the annual target of Rs. 4,175 crore, he said.

Mr. Kapur said the advances under the farm sector, as on March 31, was Rs. 6,480 crore constituting 18.86 per cent of advance thereby meeting the stipulated norm of 18 per cent. The advances to women beneficiaries amounted to Rs. 1,722 crore constituting 5.01 per cent of the advances, he added.

Banks in the State had contributed substantially to the development of the priority sector and weaker sections. The outstanding level of priority sector advances was Rs. 15,105 crore as on March 31, constituting 43.97 per cent of the total advances exceeding the stipulated 40 per cent.

Reviewing the performance of banking sector for 2001-02, Mr. Kapur said the State had a network of 4,709 branches with 68 per cent of them in rural and semi-urban areas. The banks had deposits to the tune of Rs. 54,999 crore registering growth rate of 12.63 per cent over March 2001. The total advances of scheduled commercial banks, as on March 31, were Rs. 34,351 crore registering an increase of 16.35 per cent over March 2001. The credit-deposit ratio as on March 31 was 62.46 per cent, which was 2 per cent higher than that of 2000-01, he said.

Mr. Kapur said that the farm sector received a major portion of the outlay with Rs. 4,516 crore accounting for 61.23 per cent. The credit disbursal projected towards small-scale industries was Rs. 915 crore and towards tertiary sector at Rs. 1,944 crore.

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