Dr. Avnish Jolly, Chandigarh, 20th October 2008 :The Haryana Special Secretary Finance Mr. Vijay Vardhan has urged the bankers to enhance credit through Self Help Groups (SHGs) linkages, and also impart training for them for marketing and publicity.
He was addressing the 105th meeting of State Level Bankers Committee here today. He said that the Agriculture credit had declined substantially due to Debt Waiver & Debt Relief provided to the farmers amounting to Rs.2000 crore, as such, the bankers should step up their
efforts in increasing credit growth in the coming quarter in order to achieve the target level
He said that advances have shown the achievement of Rs,3625 crore against the target of Rs.6000 crore for the first quarter. He said that special schemes should be formulated for women beneficiaries with good incentives. Mr Vardhan emphasized that economy of the State has
also changed from primarily agriculture to Service Sector. Mr.Vardhan said that Haryana State is investor friendly State with low cost manpower and excellent law and order and ideal atmosphere for the Industries.
While speaking about the performance of banks in the state of Haryana during review period from July 2007 to June 2008 the Chairman & Managing Director, Punjab National Bank Dr.K.C. Chakrabarty informed that 146 new branches of Commercial Banks and Regional Rural Banks
were opened in the State, thus raising the total number of branches from 1857 to 2003.
Dr Chakrabarty expressed with happiness that no block in Haryana in unbanked. Total deposits of the Banks in the State had increased from Rs. 62736 crores on June 2007 to Rs. 71247 crore on June 2008, showing growth of 13.56%. Similarly, advances had also increased by Rs. 12329 crore from Rs. 36370 crore to Rs. 48699 crore recording a growth of
33.89%. He expressed satisfaction over the performance.
He said that priority sector advances had also increased by 4851 crore or 22% from Rs. 22043 crore to Rs. 35894 crore during the review period. Credit to Agriculture Sector had also increased from Rs. 11356 crore as at June 2007 to Rs 13444 crore as at June 2008, thus
showing an increase of Rs. 2088 crore or 18.38%. Similarly, Advances to Weaker Sector had registered a significant growth of Rs. 1449 crore or 40% from Rs. 3622 crore to Rs. 5071 crore during the review period. The performance under this sector is commendable.
Dr. Chakrabarty expressed his happiness that Haryana’s economy is growing at about 11.2% which is higher than that of the nation. In fact, higher economic growth in the mantra for poverty alleviation. The State Govt. is following the same which induces enthusiasm amongst bankers and others like NABARD and different Government agencies partnering in economic development. In order to have better administrative control and to ensure sustained evelopment, the State Govt. had already declared the formation of a new district i.e. Palwal thus raising the total number of districts in the State from 20 to 21.
While speaking about the need of establishment of Financial Literacy & Credit Counseling Centres by the banks Dr. Chakrabarty said that Punjab National Bank had already opened one financial Literacy and Credit Counseling Centre at Yamuna Nagar and one at Chandigarh, which
will also cater to the needs of district Panchkula, Syndicate Bank, and OBC have also established one such centre each at Nuh in Mewat District, and at Karnal respectively.
Dr. Chakrabarty suggested that performance of these centres be reviewed regularly in SLBC meetings and we should assess its efficacy and share the success of such centre with member banks to extend this concept in other districts jointly or individually.
He said that advances to Micro and Small Enterprises (MSE) in the State of Haryana witnessed a growth of 37% i.e. from Rs. 4833 crore as at June 2007 to Rs. 6618 crore as at June 2008. In first quarter as against prorate target of 1.25 units. Performance of banks under SME
(Small & Medium enterprises) in the State has been very remarkable as against annual target of 20%, the banks have registered annual growth of 41%. The policy package stipulates doubling of credit to SME by 31.3.2010 but it is a matter of great satisfaction that Banks in Haryana had already surpassed the target of doubling the credit to SME much ahead of the target date. As per the annual target of 5 new units per semi-urban/urban branch are to be added whereas the banks in Haryana had added 1.84 units as against prorate of 1.25 units for first quarter.