Patna, Aug. 21: Deputy chief minister Sushil Kumar Modi today said the state has blacklisted 21 private and nationalised banks and would not deposit government funds with the financial institutions.

The government took the decision on the basis of their performance vis-à-vis loan disbursement during the 2011-12 financial year. The government has set a benchmark wherein banks had to score minimum 33 out of 100 marks.

“The state government decided not to deposit its money in the 21 banks till further order. The banks have not lived up to the benchmark set by the government for advancing loans,” Modi told reporters after the weekly janata durbar. The order to blacklist the banks would be reviewed after six months.

“We have set a norm for depositing government money/ funds in banks. According to the norms, a bank has to score a minimum of 33 marks on four parameters — Kisan credit card (KCC) loan, credit-deposit (CD) ratio, agriculture loan and priority sector lending,” added Modi, who also holds the finance portfolio.

He said: “The money presently deposited with the banks that have not performed would be withdrawn and kept with banks that have performed better.” According to the criteria, banks get 20 marks if their CD ratio is above 30 per cent, three marks if they achieve 40 per cent of KCC target and five marks (05) each for achieving targets of agriculture and priority sector lending of 75 per cent and 80 per cent, respectively. There are thirteen banks that have scored zero out of 100. Modi said as many as 11 banks have been given warning.

He added that his department has sent letters to the principal secretaries/secretaries, departmental heads, all chairmen and managing directors of state public sector undertakings and district magistrates, asking them not to deposit money in the blacklisted banks. The banks that were blacklisted included United Bank of India, Indian Bank, Oriental Bank of Commerce, UCO Bank, Indian Overseas Bank, Axis Bank, ICICI Bank, Andhra Bank, Bank of Maharastra, Dena Bank, Punjab and Sindh Bank, Vijaya Bank, State Bank of Bikaner and Jaipur, Federal Bank, South India Bank, Vysya Bank Ltd, Kotak Mahindra Bank, Bombay Mercantile Cooperative Bank, Land Development Bank and Jammu Kashmir Bank. The banks that were let off with warning included Karnataka Bank, Corporation bank, State Bank of Patiala, State Co-operative Bank, IDBI, Central Bank of India, Syndicate Bank and Allahabad Bank.

The government rated the performance of Indusind Bank, HDFC, Union Bank of India, Canara Bank, Bank of India, State Bank of India, Punjab National Bank and Bank of Baroda according to norms.