Banks' poor performace irks Mizoram govt

Aizawl, Oct 19: Mizoram government urged the nationalised banks operating in the state to ensure its financial participation in the developmental projects of the state.

State's Chief Secretary Haukhum Hauzel informed media here today that the issue has been taken up in the bankers meeting convened by the Reserve Bank of India in Guwahati recently.

Mr Hauzel said he made it a point to mention the difficulties of both public and private enterprises face when needing capital to start new ventures.

"The state government has been concerned that banks have not given the people their rights, as credit-deposit ratio of banks is very small compared to the all-India figure," Mr Hauzel informed.

He informed the meeting of the state's concern and insisted that banks need to take a more pro-active particiapation in building infrastructures and developing the people while the banks argued that demand was minimal which has posed a problem for a more active participation.

"What we are getting from the banks is apathetic. Even opening accounts is a hassle, not to mention applying for loans," Hauzel lamented.

Bringing to the notice of the media a report submitted by the RBI's Commission on Financial Sector Plan for North East Region for the period between January and June of this year, Hauzel said the report recommended a move from conservatism to liberisation in banking norms.

There were also recommendations such as avoidance of outright rejections of loans on grounds that no collateral can be provided by the applicant.

According to the report, the bank account ratio among 100 adults in the NE region is very small, 37.5 perc ent, comnpared to the all India figure of 59.2 per cent.

Hauzel also stated that RBI governor, Y V Reddy would be visiting the state on November seven next to improve the relationship between banks and people.

UNI