Patna, May 17: Deputy chief minister Sushil Kumar Modi today toughened his stand against bankers. Expressing dissatisfaction over banks’ slow pace of advancing loans, Modi said the government and other agencies would not deposit the money in those banks whose loan disbursement is not satisfactory.
“We have already issued directives to all departments, boards, corporations to not deposit their funds in private banks. But now, we will also keep tabs on the performance of public sector banks with regard to loan disbursement. We will have a review of their performance in every quarter and the government will not deposit its money in those banks whose performance will not be satisfactory,” Modi said while talking to reporters on the sidelines of his weekly janata darbar at his official residence.
Modi expressed disappointment over banks’ not advancing loans even in those schemes in which the government, Centre or state, gives a certain percentage as subsidy.
“There are schemes like Credit Guarantee Fund Trust for Micro And Small Finance and loans for purchasing agriculture machines on which the government provides 80 and 40 per cent subsidy to the beneficiaries. However, the banks are hesitating in advancing loans even under these schemes,” he said, adding that the banks were supposed to advance loans to around 21,000 farmers to purchase agriculture machines but banks could extend loans only to 11,000 farmers.
The minister said industrial loans up to Rs 1 crore, according to the Credit Guarantee Fund Trust for Micro and Small Finance, could be brought under the scheme and if a party fails to deposit the loan amount, 80 per cent of the amount would be reimbursed as per the Centre’s scheme.
After going through the performance record of banks, with regard to agriculture loan disbursement, whose benefits in the form of subsidy are not reaching farmers, Modi directed banks to put up a display board describing in big letters that farmers making timely deposit would have to pay three per cent interest instead of seven per cent.
