<p>The burgeoning political confusion over the announcement of farm loan waiver by the state government seems to have dampened the spirits of banks, especially in the public sector.</p>.<p>The confusion has resulted in a sudden drop in deposits and their renewal, besides halting the recovery process completely. The performance of the banks was reviewed by Union Minister for Statistics and Programme Implementation D V Sadananda Gowda in Bengaluru Urban Zilla Panchayat on Monday.</p>.<p>The review revealed that the renewal of deposits dropped by 20% in both urban and semi-urban areas.</p>.<p>K N Manjunath, Divisional Manager, Lead Bank said, “The drop can be attributed to the political confusion surrounding loan waiver. With the government about to take a stand in a few days, the performance will be better in the coming days. While renewal has seen a dip, deposits have marginally gone up by 9.6%.”</p>.<p class="CrossHead">Education loans</p>.<p>The minister expressed concern over non-availability of education loans to youngsters.</p>.<p>“There have been many complaints that youngsters are finding it tough to get education loans. Bankers must encourage them to study more by providing loans,” Gowda said.</p>.<p>The bankers, however, maintained that they have posted good results with loans for those pursuing higher education abroad. But there have been a few technical glitches for those pursuing within India under the limit of Rs 10 lakh.</p>.<p>Following several complaints about bank branches being shut soon after the merger of SBM with SBI, Gowda said, “The bankers must ensure that there is one branch in every six-kilometre radius. Urban areas in BBMP limits will have several banks. But on the outskirts and semi-urban areas, people depend on public sector banks and they must cater to their needs,” he said.</p>.<p>The minister also urged bankers to distribute more RuPay cards by withdrawing the normal ATM cards, as the former comes with several benefits.</p>
<p>The burgeoning political confusion over the announcement of farm loan waiver by the state government seems to have dampened the spirits of banks, especially in the public sector.</p>.<p>The confusion has resulted in a sudden drop in deposits and their renewal, besides halting the recovery process completely. The performance of the banks was reviewed by Union Minister for Statistics and Programme Implementation D V Sadananda Gowda in Bengaluru Urban Zilla Panchayat on Monday.</p>.<p>The review revealed that the renewal of deposits dropped by 20% in both urban and semi-urban areas.</p>.<p>K N Manjunath, Divisional Manager, Lead Bank said, “The drop can be attributed to the political confusion surrounding loan waiver. With the government about to take a stand in a few days, the performance will be better in the coming days. While renewal has seen a dip, deposits have marginally gone up by 9.6%.”</p>.<p class="CrossHead">Education loans</p>.<p>The minister expressed concern over non-availability of education loans to youngsters.</p>.<p>“There have been many complaints that youngsters are finding it tough to get education loans. Bankers must encourage them to study more by providing loans,” Gowda said.</p>.<p>The bankers, however, maintained that they have posted good results with loans for those pursuing higher education abroad. But there have been a few technical glitches for those pursuing within India under the limit of Rs 10 lakh.</p>.<p>Following several complaints about bank branches being shut soon after the merger of SBM with SBI, Gowda said, “The bankers must ensure that there is one branch in every six-kilometre radius. Urban areas in BBMP limits will have several banks. But on the outskirts and semi-urban areas, people depend on public sector banks and they must cater to their needs,” he said.</p>.<p>The minister also urged bankers to distribute more RuPay cards by withdrawing the normal ATM cards, as the former comes with several benefits.</p>
