Banks should review their credit policy: Rangarajan

Mangalore, Feb 18 (UNI) The Chairman of Economic Advisory Council to the Prime Minister Dr C Rangarajan today said that Banks should seriously consider reviewing their credit policy to meet the requirements of marginal and small farmers in the country.

Delivering the Karnataka Bank Founder's Day lecture on 'Challenges before the Indian Banking system' here he said that "a re-look at the organisational structure of rural banks are necessary. Banks need to think deeply on how to meet this challenge, he added.

Dr Rangarajan emphasised that Indian Banks would have to evolve appropriate strategy to enable Firms access funds at competitive rates as foreign banks operating in the country may lure them by financing for foreign trade in goods and services.

"Banks should equip themselves to operate in a de-regulated interest rate environment and special attention would have to be given to developing the necessary treasury management while managing their investment portfolios", he added.

UNI