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Govt ban relief for banks

- State sets performance benchmark

Patna, Nov. 10: Deputy chief minister Sushil Kumar Modi today said the state govern- ment would renew business with seven of the 14 banks blacklisted by it last year.

The Nitish Kumar government had in August 2011 blacklisted 14 banks and decided not to deposit money with these because of poor performance in terms of loan disbursement.

“On the basis of a review of the performance of the banks, the government has decided to renew business with seven of them. We found the performance of the seven banks satisfactory according to the criteria. The government’s decision not to deposit money with the non-performing banks have paid fruitful results,” Modi told reporters here.

The banks that got the relief are Dena Bank, United Bank of India, Indian Bank, Indian Overseas Bank, State Bank of Bikaner and Jaipur, Oriental Bank of Commerce and Axis Bank. However, UCO Bank, ICICI Bank, Andhra Bank, Bank of Maharashtra, Punjab and Sind Bank, Vijaya Bank, and Land Development Bank continue to be in the blacklisted group.

The government has set a benchmark wherein the banks have to score a minimum 33 of 100 marks. According to the norms, a bank has to score the minimum marks on four parameters — Kisan Credit Card loan, credit deposit ratio, agriculture loan and priority sector lending.

Modi, who also holds the finance portfolio, reviewed the annual credit plan of 2012-13 and expressed satisfaction on the banks’ performance in the second quarter.

He asked the financial institutions to speed up the process to achieve loan disbursement target of Rs 51,400 crore during this fiscal.