WB CM to meet bankers for more SME lending

Kolkata, Aug 31 (UNI) Even as banks faired better in priority sector lending in the state, West Bengal Chief Minister Buddhadeb Bhattacharjee plans to meet select bankers to encourage them to lend more to small and medium enterprise sector.

According to sources, chairmen of three city-based banks--Allahabad Bank, Uco Bank, UBI along with the local heads of SBI, Central Bank of India are expected to attend the meeting.

Senior officials of West Bengal State Co-operative Bank will also be present.

"Banks have been chasing big corporates, while it's small businesses that need more financial assistance," Mr Bhattacharjee recently had said at a seminar on cottage and small scale industries.

According to banking sources, all banks in the state have collectively disbursed nearly Rs 2,100 crore during the period, compared to Rs 1,600 crore in the previous corresponding period.

The banks' credit-deposit ratio in the state improved to 63 per cent on June 30, 2006, against 60 per cent on March 31, 2006.

The State Level Bankers' Committee (SLBC), after consulting with the government, has set a target to take the CD ratio to 65 per cent by 2006-07.

Meanwhile, banks in West Bengal have already scaled up priority-sector lending levels in the first quarter of 2006-07 with expansion of economic and entrepreneurial activities.

The first quarter lending reflects 15 per cent of the Rs 14,000-crore annual target set for banks operating in the state.

Such bank disbursements are meant for farmers, small businessmen, and medium-sized entrepreneurs.

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