Mumbai :
Uttar Pradesh chief minister Akhilesh Yadav appealed to top bosses of nationalised banks to increase credit deposit ratio for improving economy of the state and to provide employment to youth as well as adopt villages for all-round development. At an industrial road show organised by the Uttar Pradesh government in Mumbai on Thursday, Yadav emphasised that credit deposit ratio in the state is 54% and to take it up to 75% there was a need to invest nearly Rs 1.50 lakh crore, hence bankers should motivate corporate houses to come to Uttar Pradesh to set up big projects.
The CM expressed satisfaction over improvement of credit deposit ratio in last three years from 44% to 54% though there was still need to improve it further vis-a-vis the national average and keeping in mind the size of the state. He said the state’s banking sector had improved in the last two years with opening of more than 3,500 branches. “You have opened branches across UP and the state too had supported the development,” said the chief minister at the meeting attended by heads of the State Bank of India, Bank of Baroda, Dena Bank, besides private sector banks like ICICI.
“Lending in the state has increased by Rs 1.65 lakh crore from Rs 2.01 lakh crore in 2012 to Rs 3.67 crore in March this year,” said the chief minister, adding that government wants there to be one brick-and-mortar branch in every 5km with population of 5,000.
Speaking on the occasion, chief secretary Alok Ranjan who was heading the delegation of top offices of the state advised bankers about the important role they can play in UP which is the largest market and tops in production of sugarcane, potato, milk and vegetables.
Responding to the queries of bankers for increasing recovery rate, Ranjan said necessary directions have been issued to officials at district level to take strict action against big defaulters and help banks in recovery of bad debts.
Principal secretary finance Rahul Bhatnagar said there were nearly 11,000 branches in the state and if each branch adopted just two villages, 22,000 villages could be developed. He said despite directions of the Reserve Bank of India, banks were not lending sufficient loans under various programmes. In Uttar Pradesh, they should have extended loans over Rs 2,850 crore to 19 lakh persons this financial year, but have not. He appealed to bankers to increase loaning under various schemes of UP government, including Kaamdhenu, education, minor and medium sector industries. Bhatnagar added, 38,050 branches of various nationalised banks in the state were sick, which the bankers should revive.
source: http://www.timesofindia.indiatimes.com / The Times of India / News Home> City> Lucknow / by Subhash Mishra, TNN / September 11th, 2015