FM shows road map for Bihar's economic development

Patna, Jun 21 (UNI) Unfolding four road maps for economic development of Bihar, Union Finance Minister P Chidambaram clearly instructed the bankers to achieve the fixed targets in order to increase the credit flow and subsequent enhancement in the CD ratio of the state.

After addressing the State level Bankers Meet, Mr Chidambaram told newspersons here today that both the bankers and the state government had been asked to focus on achieving the target of Rs 10,000 crores of agricultural credit plan, increasing the number of Kisan Credit Cards (KCC) and Self Help Groups and emphasised on development of small and medium enterprise sectors.

Exasperated with the happenings in the banks in Bihar which had resulted in low CD ratio, zero lending and poor realisation, Mr Chidambaram directed the Zonal Managers to visit 20 branches every month for the next three months and the Chairmen and Chairman cum Managing Directors of the banks to visit Bihar once a month for the next three months and present full picture of the happenings in the branches.

He assured that problems, being faced by the banks, in Bihar in order to boost agriculture, the back bone of the state would be addressed.

Getting tough on the banks performance in the state, Mr Chidambaram categorically stated that banks must achieve the targets. Concerned with dismal lendings by the banks he directed the bankers to rectify it by September 30 saying that there were zero lending branches. ''We cannot accept any branch not lending money,'' he said.

Over the poor CD ratio, specially in the North Bihar where it was even less than 10 per cent, he said he did not find any reason that the CD ratio could not be enhanced. Once the fixed targets were achieved within the stipulated period, the CD ratio would automatically increase, he added.

Instead of increasing the number of branches he stressed on the need to strengthen the existing branches.

He asked the bankers to instill confidence and identify areas for lending money and suggested people return the loans to the banks.

Mr Chidambaram said the nation cannot grow if eight per cent of its population living in Bihar lagged behind. Bihar, the heart land of the country was lagging far behind compared to other states of South India and some others states where the growth rate was much higher.

Irrespective of the political party and the ideology, the Minister emphasised on carrying the business of the government for achieving the growth rate targets.

Mr Chidambaram outlined the success of Selh Help Groups (SHGs) in Kerala, Tamil Nadu, Orissa and other states and urged to the state government for initiating steps to constitute such groups and achieve the target of constituting 36,000 SHGs. After assessing the problems in Kisan Credit Card (KKC), he asked the commercial banks to increase the numbers of KKC up to 2000 within the next three months.

During the meeting, the minister, in-charge of the milennium shallow Tube Well projects, said, ''Red tapism was the main stumbling block behind loan distributions for the project.'' The Finance Minister, with the help of state government gave an instant solution to the issue and asked to achieve the target of 261000 during the current fiscal.

He further stressed the need for cluster development of small and medium enterprises and asked the banks to actively cooperate in the projects of the state government with thrust on weaving, handicraft, fishery, dairy, ready made garments and food processing.

Mr Chidambaram referred to problems in the banks and directed the bankers to constitute small groups headed by the RBI personnel to bring the problems to light.

Bihar Chief Minister Nitish Kumar invited the bankers to attend regular janata darbar in order to be acquainted with the aspirations and problems of the youth. Mr Kumar said hundreds of youth visit his janata darbar with complaints about the tedious loan disbursment procedure of the banks. He said it would be easy for the bankers to plan the schemes once they personally listen to their problems.

He also suggested all major banks to adopt districts to achieve over all development of the state. He assured to extend full cooperation to the bankers in facing the challenges.

Deputy Chief Minister Sushil Kumar Modi stressed the need to achieve 40 per cent CD ratio saying that it was not an impossible task as in some of the districts the CD ratio was satisfactory.

During the meeting, it was highlighted that 10 districts inclduing Purnia, Katihar, Araria, West Champaran and others had CD ratio about 50 per cent as against an average of about 32 per cent in the rest of Bihar.

In the meeting, it was brought to the notice that 37 branches of different banks located in Patna and some in the rural areas did not lend money during the past one year. It was brought to the notice that 700 branches were single manned which were responsible for their poor functioning.

The meeting was also attended by RBI Executive Director, Das, NABARD MD, K.G. Karmkar, Ms H.A. Daruwalla, CMD Central Bank, State Bank Of India, MD T.S.Bhattacharya and others.

UNI