'Banks should reach rural households'

Zilla Panchayat secretary Parnesh Rao felt that there was a need to take measures right from the grass roots level to improve the credit deposit (CD) ratio of the banking sector in the district.

Speaking at the quarterly meeting of the district -level review committee for banking in Udupi district, Rao said the banks should approach Gram Panchayats to make a note of the households in rural areas, which has not availed any loan facilities. The bank branches in the rural areas should approach the beneficiaries.

For this, he suggested that Bharath Nirman Volunteers (BMVs), Asha workers, Anganawadi workers could be appointed by the banks, who can collect the details of rural households for the banking sector in rural areas. They can be introduced as the link between the banks and the villagers. 

He called upon the baking sector to break the deadlock and knock the door of the beneficiaries in order to improve the CD ratio. He said there still exists the stigma among the villagers against the loans and banking facilities. Campaign is the need of the hour. The banks should tap the people who need money and not the other way around.

He said loan week or loan month should be organised and the details should be displayed in Gram Panchayat notice board.

Deadline for banks

NABARD Assistant ManagerPrasad Rao felt the banks should take measures to improve the CD ratio of all the branches, especially the branches in rural areas which has CD ratio below 50 per cent. He said the CD ratio of the rural branches is very low when compared to semi-urban and urban branches.

 The banks should mull over providing advances through rural branches.  Rao said the banks were given the deadline of March 31, 2015, to improve the CD ratio of the branches that have above 50 per cent CD ratio and March 31, 2016 for the CD ratio below 50 per cent.

He directed the banks to identify the potentials at the ground level and promote MSME sector.  The bank managers should be assigned to be able to sponsor at least one candidate per month, he urged.

Speaking on the occasion, an official from Syndicate bank explained that the bank has taken up an initiative to mobilise the corporate sector to promote funds. MSME week was organised, wherein Rs 30 crore business took place. Hundred and fifty new accounts were opened. There is shortage of manpower in branches and new recruitment is on. By the end of July, there will be sufficient  staff in the bank branches.

Meanwhile Canara bank officer said that MSME week is held regularly. She added that a programme was held for fishermen and women. New accounts are opened. State Bank of India officer said that main focus is given to agriculture, besides retail loans. Lead district Chief Manager K Subba Rao said the NRI deposits in Udupi district accounts to 19 percent of the total deposits.