Punjab asks banks to step up financing

Punjab government today asked bankers in the state to step up financing particularly in the priority sector and industrial segment to boost state economy.
It also asked bankers to eliminate "cumbersome" procedure for seeking loan and put in efforts to create more awareness among people to come under banking fold to meet their needs.
"I feel that you must need to lend more aggressively in the state. I find deposit growth at 14.4 per cent and advances at 11.88 per cent which means there is a gap between lending and deposits and this gap needs to be filled. Deposit growth must match lending growth," Punjab Finance Minister Parminder Singh Dhindsa said here today while addressing SLBC meet.

"Banks should focus on lending more towards priority and industrial sector in the state," he said.
Dhindsa also took note of poor achievement of banks in terms of debt swap scheme, aimed to bring farmers from the clutches of moneylenders.
At least 3 per cent of disbursement of agriculture credit during the year is to be earmarked for giving loans under 'Debt Swap Scheme'.

Against the debt swap target of Rs 17.68 crore till December 2014, Rs 1.98 crore has been swapped by banks in the state, as per SLBC report.
Dhindsa also found banks' lending process as cumbersome and demanded it should be simpler to make loan available to as many persons as possible.

"I want all of you to lend liberally to people in the state. However, I feel that the process of banks' advances is cumbersome," he said.
He also desired that the banks should encourage bank account holders to use their banks frequently to avail banking services. "Banks' duty should not be limited to opening of accounts. They should also ensure customers use these accounts for their benefits," he said.
Asking bankers to play a useful role in the overall development of state, Finance Minister said the development of the state depends on the efficiency of banking sector.
A bank official on this occasion said in order to cover 54,76,724 households in the State under Prime Minister Jan Dhan Yojana (PMJDY), a door to door survey was conducted by the Banks with the help of state government.

"With the active support and guidance of the Punjab Government, State has been declared as saturated on December 8, 2014.
"To cover the entire households and to create awareness among the public for PMJDY scheme, the banks in the State of Punjab organized 40481 camps and 2,945,090 accounts were opened covering the entire households in the State" he added.
Total deposits in Punjab have increased by Rs 32,099 crore from Rs 2,22,081 crore to 2,54,180 crore thereby showing an increase of 14.45 per cent as on December 2014.
He said agriculture advances have increased from Rs 43,235 crore as on December 2013 to Rs 49,303 crore as on December 2014 recording a growth of 14.03 per cent.