Bihar govt. warns private banks

Patna, May 26 (UNI) The Bihar government has warned private banks operating in the state against their callous attitude towards participating in developmental schemes and asked other commercial banks to strive for augmenting credit deposit ratio to reach the target of 40 per cent during current fiscal.

"In the event of failure of private banks to cooperate with the government in providing funds for implementing development schemes and increase their share in rural credit, the government would be compelled to ask divisional commissioners to withdraw all government deposits from such defiant banks'', Deputy Chief Minister Sushil Kumar Modi, who also holds the finance portfolio, told reporters here today after a meeting of state level bank coordination committee.

After reviewing the performance of the last quarter of 2005-06 financial year, banks were asked to gear up to achieve the target of annual credit plan fixed at Rs.10,000 crores, he said adding the government emphasised on special efforts to implement the centre's directive for doubling the credit flow to agricultural sector from Rs.1588 crores in April,2004 to Rs.3176 crores by March 31,2007.

Mr Modi said that other decisions in the meeting included, launching vigorous drive to cover all the 1.04 crore land holdings in the state under Kishan Credit Card scheme and intensification of efforts to provide loans to increasing number of self-help groups.

Dismal performance of banks in providing loans under PMRY was also discussed in the meeting and RBI was requested to undertake a study to ascertain the reasons for such sorry state of affairs, Mr Modi maintained.

Banks were asked to identify their branches recording zero performance in respect of advances and explore possibilities of opening branches in 37 'no bank' blocks in the state, he added.

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