The state government would not deposit money in two banks for their poor performance in loan disbursement.

Deputy chief minister Sushil Kumar Modi on Friday said the government has identified the two financial institutions.

However, refusing to divulge the names of the two banks at the 41st state-level bankers’ committee meeting, he said: “The state government has taken a decision not to deposit money in the two public sector commercial banks as they have not achieved the target set by the government for advancing loans.”

“The government has prepared a grading list of banks on a performance scale and the names of the two financial institutions would be disclosed in the next four to five days,” he added.

In February, the government had said it would not deposit money in banks that fail to achieve loan disbursement targets.

“The government has set a norm for getting government money/funds deposited in the banks. According to the norms, a bank has to get a minimum of 33 marks on four counts — Kisan Credit Card (KCC) loan, credit-deposit (CD) ratio, agriculture loan and priority sector lending,” said Modi, who also holds the finance portfolio.

According to the criteria, banks would get 20 marks if their CD ratio is above 30 per cent, three marks if they achieve 40 per cent of KCC target, five marks each for achieving targets in agriculture and priority sector lending at 75 per cent and 80 per cent, respectively, he said. Modi, while reviewing the performance of banks vis-à-vis loan disbursement in the first quarter of 2012-13, said the banks have advanced loans of Rs 7,126 crore till June against last year’s Rs 5,270 crore in the same corresponding period — a growth of 35.23 per cent.

Modi said the banks have decided to open 419 new branches in this fiscal.

They, too, have assured the government that they would install 1,866 new ATM kiosks.