In a statement that might send a shiver down the spine of the state government, a top State Bank of India (SBI) official has said the Madhya Pradesh does not have any viable project which needs funding.
SBI Bhopal circle, the second biggest circle in terms of business, has posted only Rs 35,232 crore advances during the year ended March 31. Out of the total deposit of Rs 82,692 crore, the agri-loans have contributed to only 27 per cent. The circle covers both Madhya Pradesh and Chhattisgarh, states rich in minerals.
“We do not have viable proposals from both the states and our credit-deposit ratio is 55 per cent against laid norms of 60 per cent,” admitted SK Mishra, SBI Deputy Managing Director, Bhopal Circle. The circle is focusing on the retail segment and financial inclusion. The agriculture advances of the bank stood at Rs 11,343 crore or just 27 per cent of which a lion's share goes to kisan credit cards and tractor loans.
The bank will soon spread its network through ultra small branches in non-banking areas with population OF less than 2000. It will explore new areas like e-payment of value added tax, railway freight, salaries and vendor payments along with focus on new villages where no banking facility is available. “Even all savings accounts in towns and cities will have no mandatory minimum deposit maintaining conditions,” Mishra added.
The Bhopal circle of the SBI has set a target to fund 5lakh farmers for a sum of Rs 6,500 crore during 2012-13 and offer rural housing loans under the Chief Minister Rural Housing scheme.
In absence of big corporate credit take-off, the bank's business in the circle will hinge upon services like online payment of high-tension power bills and accidental insurance of Rs 4 lakh against a nominal premium of Rs 100.
