Banks giving priority to education loans: FM
Pudukkottai
(Tamil
Nadu),
Nov
26:
Union
Finance
Minister
P
Chidambaram
said
commercial
banks
in
the
country
accorded
priority
to
sanctioning
education
loans
to
students
for
pursuing
higher
studies.
Inaugurating
the
new
branch
of
Bank
of
India
(BOI)
here
yesterday,
Mr
Chidambaram
said
the
banks
had
sanctioned
Rs
14,500
crore
towards
educational
loans,
benefitting
ten
lakh
students
against
Rs
4,400
crore
given
to
3.50
lakh
students
during
the
previous
regime.
The efficient financial management of Indian banks had surprised foreign banks and some of them were seeking advice on fiscal administration from a few leading Indian banks, he said.
Poor financial management had crippled several banks in England, France, Germany and the US in the recent past.
He attributed the success of the banks in the country to strict surveillance of the Reserve Bank of India and the efficiency of the chairpersons.
The Minister said nationalised banks played a crucial role in achieving the country's economic and industrial growth.
The Bank of India's net non-performing assets ratio stood at 0.75 per cent validating the steps taken by the bank in ensuring prompt recovery of loans.
The bank's credit flow for priority sector was 43.7 per cent indicating its contribution to the nation's growth.
In his address, Union Minister of State for Environment and Forests S Regupathy said there was a strong case for starting the bank's branches in major villages in the district and appealed to Mr Chidambaram to establish them at Kothamangalam near Alankudi and Naakudi near Aranthangi in the district.
Bank of India Chairman and Managing Director T S Narayanasamy said this was the 2,873rd branch of his bank.
The bank had recently started a Representative Office at Johannesburg in South Africa.
Later, Mr Chidambaram gave away loans to 118 persons to the tune of Rs 1.70 crore. He also distributed passbooks to depositors.
UNI