Shimla: Himachal Pradesh has credit-deposit ratio of 35.47 percent. And the national average is 75.64 percent. The state has over 1.05 lakh crore deposits in the bank whereas it have only Rs. 37,400 crores loans.
Himachal Pradesh Chief Minister Jai Ram Thakur, in state level banker’s conference, advised bankers to target sectors such as agriculture, tourism, horticulture and services sector for increasing the credit-deposit ratio.
Thakur advised banking sector to create conducive atmosphere for people to go for institutional loans. The efforts would be made to bring co-operative banks in the State under the preview of Credit Guarantee Fund Trust for Micro and Small Entrepreneurs (CGTMSE) for availing credit guarantee coverage for collateral free loans, the CM said.
To increase credit ratio, Jai Ram Thakur told bank to simplify cumbersome documentation and procedure requirements for availing banks loan. He said that a survey conducted in the State has found that a large proportion of households accessed non-institutional sources for loans. He said that only about 46.51 percent household opted for institutional loans, thus the bankers should come up with easy and simple procedure for financing, he further added.
Encourage farmer’s cooperatives like self-help groups
The Chief Minister said that efforts should be made to encourage and credit link the farmer’s cooperatives like self-help groups, farmers producer organization etc. He said that the bank should also come forward to promote small and micro industrial units by providing them need based loans and other logistic support. He said that strategy should be framed for improving credit expends and fix a target to improve credit-deposit ratio with in a stipulated time period.
Jai Ram Thakur said that there was immense potential in sectors like health care, skill development, human resource development etc. for expanding banking activities. He said that since institutional loaning was low in rural areas, banking sectors should focus on these areas for increasing credit deposit ratio. He said that it was also the responsibility of the bankers to make aware the credit shy cultivators about benefit of institutional loans. He said that Reserve Bank of India direction requires not to take guarantee and create charge of KCC loans below one lakh. Therefore the bank should expand KCC coverage of farmers, he added.