Home ODISHA LATEST Govt. to serve notices to 5 banks for failing on agri-loan front

Govt. to serve notices to 5 banks for failing on agri-loan front


OST Bureau
Bhubaneswar, Oct 11:

Making its annoyance clear, the state government has decided to issue notices to five commercial banks for their non-performance in extending crop loans and agriculture term loans as per targets fixed by the State-Level Bankers’ Committee (SLBC).

The state government has taken a serious view of the callous attitude of the commercial banks in the state in fulfilling their targets fixed by the SLBC on crop loans and agriculture term loans.

Notices asking why they should not be struck off from the list of banks eligible for investment of government and public sector funds will be issued to two public-sector banks, IDBI Bank and Syndicate Bank, and three private-sector banks, HDFC Bank, ICICI Bank and Karnataka Bank.

Additional chief secretary Finance UN Behera expressed his displeasure over the poor performances of banks despite the state government being supportive to them, at a meeting of the bankers held here recently to review their performances.

At the meeting it came to light that the achievement of the public-sector banks is 28.85% against the original target and 24.45 % against the revised target. And the performance of the private-sector banks is quite dismal, being 21.66 % and 18.36 %, respectively.

However, the performances of the cooperative banks are quite satisfactory, being 57.14 per cent to 48.42 per cent.

It was found that the performances of major banks like the State bank of India and UCO Bank are not satisfactory and they together have pulled down the aggregate achievement of the state to a lower level. Regional Rural Banks like the Odisha Gramya Bank and Utkal Gramin Bank too have performed far below expectations.

It was decided that the banks should report their achievements up to October 31 by the first week so that the performances could be reviewed at the next SLBC meeting scheduled to be held on November 17.

Senior government officials, representatives of the Reserve Bank of India and other banks were present during the review.