SSI units in NE dismal

Aizawl, Jun 23 (UNI) The flow of public sector bank credit to the Small Scale Industries (SSI) sector in the NE region is not picking up at the desired level, according to the recent study conducted by the Reserve Bank of India (RBI).

Official sources here today said that the finding further stated that these banks are not adhering also to the time schedule of two months from the close of half year for furnishing the statements in the prescribed formats to the RBI.

The study conducted by the RBI across the NE states, covering 43 bank branches, on flow of credit to the SSI units in the region, also found that the interest rates on different loan amount slabs varied from bank to bank.

Most of the UBI branches had four slabs of interest rates. While State Bank of India (SBI) was also found charging different rates of interest ranging from 8.75 per cent to 11.25 per cent on the loan slab up to Rs 25,000.

Moreover, many bank branches were obtaining collateral security against SSI loan sanctioned up to Rs 15 lakh. Out of the 43 bank branches covered under the study, 34 branches had not sanctioned any loan in the band of Rs 10 lakh to Rs 15 lakh, while 22 of them had not sanctioned any loan in the band of Rs 5 lakh to Rs 10 lakh and 12 branches were insisting on collateral security for loans up to Rs 5 lakh, it said.

Of the bank branches covered by the study, 30 branches were not issuing acknowledgement for loan applications and 37 of them were not displaying time schedule for disposal of loan applications, said the report. Strangely enough, going by the report, more than 50 per cent of the bank branches surveyed by the RBI, were not aware of the SSI charter issued by their banks, the sources added.

UNI SNR BA SS1046