The state-level meeting of nationalised commercial banks held here yesterday assured the deputy Chief Minister, in-charge of finance portfolio, Sushil Modi, to substantially increase their credit flow to the state for developmental work in the current fiscal.
Modi said against a little over Rs 8,000 crore credit flow in the last fiscal, the branches of commercial banks in Bihar have fixed up a target of over Rs 13,000 crore credit disbursement in the current fiscal.
Besides, the banks have also agreed to disburse Rs 1,000 crore for educational loans this fiscal.
"For educational loan up to Rs 4 lakh, banks will not insist for collateral security," Modi informed.
The positive attitude of the banks towards Bihar was reportedly in the backdrop of the record deposits of Rs 56,000 crore in the last fiscal. "This was again a jump by Rs 14,000 crore against Rs 42,000 crore deposits in the past," Modi said.
Modi, however, insisted to hike the credit-deposit ratio to at least 40 per cent to foster economic growth against the prevailing 33 per cent.
Explaining the reasons behind the changing attitude of the banks, Modi claimed that in 2006-07 the ruling NDA in Bihar spent over Rs 8,000 crore under various plan heads, which was one third of the total Rs 25,000 crore being spent by the previous RJD regime in past 15 years between 1990 and 2005.
Modi promised to spend another Rs 25,000 crore under various plan heads, including roads, power, education and health sectors, in the next three years to remove the underdeveloped tag attached to the state.
Source- TRIBUNE, Dated, May-09,2007
