A district-level banking review committee meeting held here on Saturday made a clarion call to the banks to increase their lending to micro, small, and medium enterprises (MSME) in the district.
Presiding over the meeting, District Collector Mrunmai Joshi expressed . She said it was disappointing.
The lending of banks to the non-farm sector in the district was less than expected. Out of the ₹13,551 crore given as loans, the banks gave ₹6,018 crore to agriculture sector, ₹1,535 crore to MSME, and ₹1,633 crore to other priority sectors, including education and housing. Of the total loans, ₹9,186 crore was given to priority sector. The outstanding loan amount of the banks on December 31, 2021, was ₹37,891 crore and deposit was ₹57,984 crore.
CD ratio improves
The credit-deposit (CD) ratio had improved from 64% to 65%. Although the meeting found it as a positive sign, the necessity of raising it to 70% was underscored by the banking officials.
District Industries Centre general manager Girish Kumar said the banks were keen to give loans to large ventures and were discouraging small and micro entrepreneurs. District panchayat president K. Binumol too exhorted the banks to support the MSME.
Kavitha Ram, district development assistant general manager of the National Bank for Agriculture and Rural Development (NABARD), exhorted the banks to focus on long-term lending. She asked them to make use of the agriculture infrastructure fund possibilities. It was in 2020 that the government introduced the agriculture infrastructure fund, and many banks were unaware of its potential. “You must focus on lending in such a way as to promote post-harvest infrastructure,” she said.
V.K. Sreekandan, MP, reviewed the performances of the banks in the district for the third quarter of the current financial year. The meeting felicitated Ms. Joshi, who had won the Best Collector and the Best Electoral Officer Awards. N. Vidyasagar, divisional manager of Canara Bank, delivered the keynote address.
Tribes’ troubles
Tribal Extension Officer K. Girija explained the banking troubles experienced by the tribespeople in the district. District Finance Officer V.R. Satheesan called upon the tribal development officials and the banks to empower and educate the tribespeople. “They (tribespeople) should understand the importance of having non-zero balance accounts,” he said.
State Bank of India regional manager K.R. Anandanarayanan offered to help the tribespeople set up non-zero balance accounts by using the bank’s corporate social responsibility funds.
Lead District Manager Sreenath R.P. and Lead District Officer of Reserve Bank of India Ranjith E.K., supervised the review. Lead Bank assistant manager V. Santhosh spoke.
