Date:22/07/2006 URL: http://www.thehindubusinessline.com/2006/07/22/stories/2006072202181900.htm

Back MPs urge banks to be considerate to the poor

Our Bureau

Thiruvananthapuram , July 21

Banks have been told to be more transparent and pro-poor in taking lending decisions.

Procedures have to be made simpler so that credit is available hassle-free to all sections of society, said Mr Varkala Radhakrishnan and Mr Panniyan Raveendran, Members of Parliament from Thiruvananthapuram district.

They said this while reviewing performance of banks in the district at the District-Level Review Committee meeting held under the auspices of IOB.

BANKS LAUDED

While lauding the banks for their performance in 2005-06, Mr Radhakrishnan said that liberal norms should be devised to give away education loans, agriculture credit, and housing finance.

Efforts should be made to see that disbursal of education loans give rise to minimum of complaints.

Total priority and non-priority sector credit disbursement in the district jointly by commercial banks, co-operative banks, and other financial institutions in the fiscal gone by amounted to Rs 5,717 crore. According to Mr Abraham Shaji John, Lead District Manager, the priority sector alone saw Rs 2,648.76 crore being disbursed.

CD RATIO

Growth in year-on-year advances of 14 per cent resulted in the credit-deposit ratio peaking to 75 per cent, well ahead of the State average of 66 per cent.

The total bank deposits in the district as on March 31, 2006 stood at Rs 11,998 crore. Advances sanctioned crossed Rs 9,008 crore.

The district occupied top position in the State in terms of percentage achievement (149 per cent) and quantum disbursement of priority credit.

For 2006-07, the priority sector disbursement target is Rs 2,186.76 crore, Mr John said.