Banks should work for increasing credit-deposit ratio, insists Himachal CM

Chief Minister said that the credit-deposit ratio in the State was 35.47 percent which was quite low than the national average of 75.64 percent

The bankers should target sectors such as agriculture, tourism, horticulture and services sector for increasing the credit-deposit ratio and ensuring all-round and robust development.

This was stated by the Chief Minister Jai Ram Thakur while presiding over the state level banker’s conference held here today.

The Chief Minister said that the credit-deposit ratio in the State was 35.47 percent which was quite low than the national average of 75.64 percent.

He said that the banking sector should create conducive atmosphere for people to go for institutional loans. The efforts would be made to bring co-operative banks in the State under the preview of Credit Guarantee Fund Trust for Micro and Small Entrepreneurs (CGTMSE) for availing credit guarantee coverage for collateral free loans.

He said that the banks should also simplify cumbersome documentation and procedure requirements for availing banks loan.

He said that a survey conducted in the State has found that a large proportion of households accessed non-institutional sources for loans.

He said that only about 46.51 percent household opted for institutional loans, thus the bankers should come up with easy and simple procedure for financing.

The Chief Minister said that efforts should be made to encourage and credit link the farmer’s cooperatives like self help groups, farmers producer organization etc.

He said that the bank should also come forward to promote small and micro industrial units by providing them need based loans and other logistic support.

He said that strategy should be framed for improving credit expends and fix a target to improve credit-deposit ratio with in a stipulated time period.

Jai Ram Thakur said that there was immense potential in sectors like health care, skill development, human resource development etc. for expanding banking activities.

He said that since institutional loaning was low in rural areas, banking sectors should focus on these areas for increasing credit deposit ratio.

He said that it was also the responsibility of the bankers to make aware the credit shy cultivators about benefit of institutional loans. He said that Reserve Bank of India direction requires not to take guarantee and create charge of KCC loans below one lakh.

Therefore the bank should expand KCC coverage of farmers, he added. He said that till June 2018 banks have provided loans worth Rs. 6193.96 cores to 4.34 lakh farmers under the Kisan Credit Card Scheme.

Chief Minister said that high credit-deposit ratio means higher capital formation that creates employment, generate income and assets and this in return help in promoting growth and sustainable development.

He said that government was endeavouring to establish industrial clusters, industrial hubs and special economic zone in the state for benefit of the entrepreneurs. The bankers should come forward to provide banking facilities to them, he added.

Additional Chief Secretary Finance Anil Kumar Khachi said that the state has over 1.05 lakh crore deposits in the bank whereas it have only Rs. 37,400 crores loans. He said the banker should also focus on housing sector for increasing credit-deposit ratio in the State.

General Manager and Convener of State level Bankers Conference UCO Bank Vivek Kaul and RBI Chair Prof. Satish Verma gave a presentation on the occasion.

Secretary Finance Akshay Sood presented vote of thanks.

Additional Chief Secretaries Dr. Shrikant Baldi and Ram Subhag Singh, Principal Secretaries Prabodh Sexena, J.C.
Sharma and Manoj Kumar, Secretaries, heads of departments and other senior officers of state government and banks participated in the meetings.

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