Fulfill at least 1 lakh cr ACP target: Sushil Modi tells banks

Bihar Deputy Chief Minister Sushil Kumar Modi today asked banks to disburse at least Rs 1 lakh crore to fulfill the target of Annual Credit Plan (ACP) of Rs 1.10 lakh crore by the end of the current fiscal.
"Banks have disbursed loans of Rs 73,215 crore out of the total ACP target of Rs 1.10 lakh crore fixed for the current fiscal. I would request banks to achieve the loan disbursement target of Rs 1 lakh crore by the end of current fiscal," Sushil Modi said.
Stating that ACP has increased 10 times of its credit size in past 10 years, Sushil Modi said that size of ACP was Rs 10,762 crore in 2007-08 which rose to Rs 1.10 lakh crore in 2017-18.

He was speaking to reporters after holding the 63rd quarterly State Level Bankers' Committee (SLBC) meet here.
Cooperative Minister Rana Randhir Singh, Development Commissioner Shishir Sinha and Finance Department Principal Secretary Sujata Chaturvedi were present during the press meet.
Sushil Modi, who also holds the finance portfolio, expressed concern over the low level of Credit-Deposit (CD) ratio at 41.67 per cent in the state against the national average of 73 per cent.

A total of Rs 2.90 lakh crore has been deposited in the banks in Bihar against which they have advanced loans of Rs 1.25 lakh crore, he said adding that CD ratio would improve if the loan amount under MUDRA scheme increases and banks start giving loans of up to Rs 2 crore under Credit Guarantee scheme under which 75 per cent of loan amount is guaranteed by the central government.

He also appealed banks to disburse a bigger amount under MUDRA scheme so that a person can carry out his business properly. At present, the size of 90 per cent of loans advanced under MUDRA is around Rs 50,000, he added.
Talking about education loan including Bihar Student Credit Card scheme (BSCC), the FM admitted that the loans sanctioned by banks is not "satisfactory".
Banks have sanctioned 32,002 applications for education loan that included 12,583 applications under BSCC scheme, he said while refusing to give details of amount given as education loan to students under both schemes.
The Bihar cabinet on February 10 gave its nod for setting up of a Bihar State Education Finance Corporation in order to disburse loans for Students Credit Card (SCC) scheme in view of banks reluctance in doing it.

Stating that there are a total of 6,876 bank branches in Bihar, Sushil Modi said that as per RBI guideline a bank branch has to be set up for every 5,000 people.
Out of 602 such villages having population over 5,000, 370 villages have been provided with bank branch facility while banks have assured that they would open branches in the remaining 232 villages by the end of the current fiscal.
Kisan Credit Card (KCC) camps will be organised next month in different parts of the state for distribution of KCC, he said.