Sanjay Kabad, Asst. General Manager – DENA BANK has rich experience of 32 years as a banker. He had worked in state of Gujarat for Dena Bank in different capacities earlier.
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Excerpts of his interview with B P Samantray and Sandeep Pattnaik.
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Q. In a recent bankers meet, it was envisaged to target credit disbursements to Rs.7300 odd crores under MUDRA Yojana for the current fiscal year (FY’17). Then what is your strategy to participate in the credit growth?
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Ans. We have 22 branches in state of Odisha and we have been given competitive targets for all the branches for achieving credit disbursement under MUDRA Yojana. Our Bank is committed for successful implementation of MUDRA Yojana. For identifying genuine and good beneficiaries under the scheme we are contacting Rural Training Institutes (RSETI) set up by certain banks with the help of State Government. This will ensure that we get good quality of proposals for successful implementation of MUDRA Yojana Scheme. Besides we are also in touch with other State Government Agency like District Industry Center, KVIC, KVIB etc for sponsoring of proposals under MUDRA Yojana.
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Q. Many districts of the State are still deprived of banking services. What are your plans for “Financial Inclusion’ in the State?
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Ans. As per recent RBI report, there are 78 unbanked villages having population more than 5000, identified for opening new branches, 13 villages had bank branch within five km. radius. There is an urgent need for all the banks operating in the state for opening branches in the remaining 65 villages having population more than 5000, for which RBI has advised the banks to submit survey reports. Banks have been shy for opening of branches in such villages as according to them branch opening was not viable. In such cases RBI has advised to banks to submit their survey reports taking into confidence of Lead District Manager (LDM) and representative of NABARD. As far as our bank is concerned we have been allotted three proposed branches to be opened in Kujanga of Jagatsinghpur dist, Balipatna of Khurda District and Bamt of Sambalpur District.
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Q. Which are the focus areas to augment overall Credit growth in Odisha?
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Ans. The primary industries in Odisha are mining & quarrying, and Steel Industry. However due to recent scams and illegal mining episode, it has affected the industrial growth of the State. Bank is exploring possibility of credit growth in Micro Finance Sector. Recently we have sent a large proposal of Rs.40.00 Crores for sanction to M/s Annapurna Micro Finance Pvt Ltd – NBFC. We are also exploring credit to another Micro Finance NBFC Company viz. Adhikar Micro Finance Pvt Ltd. We are increasing our exposure in steel sector and we are actively considering fresh Term Loan of Rs.50.00 Crores to Neelanchal Ispat Nigam Ltd. We are also exploring to other segments such as Food Processing including sea food, Textiles and Apparel etc.
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Q. ‘Start Up India’ is much talked about campaign the Country is betting on. Then how Dena Bank is posied to finance prospective entrepreneurs in the State?
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Ans. Start Up / Stand Up India Scheme aims to reach out the target group (SC/ST & Women) by extending loans ranging from Rs.100 lakhs. Due to increasing environmental friendly industrial relationship in the state of Odisha, there is ample scope of finance under this scheme. Besides contacting RSETI (Rural Training Institute) we are also in touch with other Government Sponsoring Agencies such as KVIC (Khadi & Village Industries Commission), District Industrial Centers (DIC) for identifying good potential candidates for finance under this scheme. Finance under this campaign is also being given under PMEGP scheme launched by Government of India. All the loan applications are being covered under CGTMSE i.e. Credit Guarantee Fund Trust for Micro and Small Enterprises in which borrowers / loan applicants are exempted of giving any other collateral securities. With all these incentives and initiatives by State / Central Government, our bank hopes to show good performance under this campaign in the State.
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Q. Industrialization in the State has been in the back burner. Then as a banker of a PSB, What is your view about Odisha economy in general?
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Ans. We concur that Industrialization in the state is Stagnant. The Reason being the Steel sector is still sluggish all over the globe and the State has lot of Steel Plants which are not doing well. Besides the mining scams and Chit fund scams have eroded image of the State. However, there is ample scope of development of Industries in this State. Odisha boasts of huge mineral wealth which if exploited in a right way would benefit the state in terms of bringing in investments in the State for growth of Industries. The Recent conclave of Make in India – Odisha Chapter will give the much needed boost of bringing investments, both Foreign and Domestic.
