Date:02/08/2004 URL: http://www.thehindubusinessline.com/2004/08/02/stories/2004080201381300.htm

Back `PSU banks must offer more educational loans'

Our Correspondent

Madurai , Aug. 1

THE public sector commercial banks should offer more educational loans, observed the Union Finance Minister, Mr P. Chidambaram, at the conclusion of his visit to the rural bank branches in the district.He also said the condition of primary agricultural co-operative banks are very pathetic and they require a revamp.

The Finance Minister visited the branches of State Bank of India at Thanichiyam, Central Bank of India's Thathampatti Branch, at Vadipatti, the Nirothaan Primary Agricultural Co-operative Bank at T.Vadipatti and the Canara Bank's Ammayanayakanoor branch at Kodai Road, in the district. He told presspersons that the visit was to familiarise himself with the ground realities and to see for himself as to how the banks have started to deliver on the Budget promises.

He said that there is a need for banks to shed their old mindsets and act speedily. While some have started issuing circulars; the State Bank of India has advertised and yet others have given press releases. The Minister said such visits will be paid to Karnataka, Orissa, Gujarat, Maharastra, Bihar and Uttar Pradesh. A personal visit to all branches is not possible.

The Union Minister of State for Finance would undertake some.

He further said banks needed to provide more educational loans without asking for collateral securities up to Rs 7.5 lakh, for professional courses leading to a degree.