By Sandeep Pattnaik
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Bhubaneswar, 22nd Feb 2016: Odisha Govt has asked commercial and nationalized banks to boost up Credit Deposit (CD) Ratio in the State, cover unbanked GPs either through Brick & Mortar branches or through Banking Correspondents Model. The banks are also suggested to increase advance under agriculture and MSME portfolio.
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This was revealed by Chief Secretary Aditya Prasad Padhi while addressing the key note session of the State Level Bankers Coordination [SLBC] Meeting to bankers held on Monday here.
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“Core of banking activity is the credit flow to entrepreneurs. The programmes like Start-up India, employment generation, livelihood enhancement etc remain unrealized without adequate credit flow to agriculture and MS& ME sectors”, Padhi said. “Around 70% of the credit flow to agriculture was from cooperative banks and commercial banks only financed about 30%,” he added.
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He urged upon the banks to improve agricultural financing at par with cooperative banks.
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Emphasizing on opening of banks in unbanked GPs of the backward districts like Malkangiri, Nuapada, Nabarangpur and Kandhamal, the Chief Secretary said, “Govt would bear the cost of V-Sat connectivity and provide office space at GP level to the banks that would open new branches in those areas. Earlier Govt had also decided to transact all GP funds, Govt grants to GPS and subsidies to people etc through the bank at GP level.”
