Foreign, Private Banks Can Attend Slbc Meetings

Centre in principle has decided to allow foreign and private banks to take part in the State Level Bankers' Committee (SLBC) meetings.

This was announced by Union minister of state for finance Balasaheb V Patil here yesterday. Patil had come to Orissa to review the sanction of loans by various banks to the cyclone victims in the state. He also took part in a scheduled SLBC meeting in the city.

According to informed sources, earlier the entry to these meetings was restricted to only nationalised banks. The SLBC is responsible for setting the agenda for business transaction of various banks at the state level.

 

It meets at regular intervals to take stock of the credit recovery position of the states concerned and suggest measures to improve the functioning of the banks there.

Following the latest decision of the Centre, the foreign and private banks have not only been offered an opportunity to play a role in the formulation of macro economic policies at the state level but also have a closer look at the ground realities of the credit and recovery scenario in rural India.

Expressing his satisfaction over the progress of loan disbursement by various banks in cyclone devastated Orissa, Patil said together the banks had exceeded the annual target of Rs 1500 crore loan advance set for 1999-2000. He also indicated that the Rs 1839 crore credit target set for the current financial year might have to be revised upward because of massive fund need to undertake rehabilitation work.

He said the banks had disbursed Rs 306 crore loan to over three lakh beneficiaries in 14 cyclone affected districts in last four months. This included Rs 136 crore crop loan and Rs 111 crore cooperative loan.

He said instructions had been issued to clear all pending loan applications within next three months.

For a coordinated action in this regard, he said the district collectors and lead bank managers would sit together and decide on the merit of these applications.

In yet another sop to the cyclone victims, Patil said, though there was a guideline by Reserve Bank of India prohibiting sanction of loans to defaulters, a lenient view would be taken with regard to "non-wilful" defaulters while deciding on their loan applications. Similarly there is a two year moratorium on payment of loans in the cyclone affected areas.

He said 2,000 agro-service centres would be opened in cyclone hit areas to provide agriculture implements, seeds and fertilisers to the farmers. These centres will be financed by National Bank for Agriculture and Rural Development (Nabard). Stating that 1.5 lakh farmers in cyclone hit areas had been covered by crop insurance, he said nearly 80 per cent of their Rs 69 crore claim had already been settled.