The state government has decided to park its money only in the banks meeting the benchmark loan disbursement target. In a bid to increase the credit flow, the government has set a norm for depositing government money/funds deposited in the banks which meet certain criteria. 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,
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 75 per cent and 80 per cent target of agriculture and priority sector lending, respectively.
“We found the banks’ performance unsatisfactory during the 39th state-level bankers’ committee meeting. It has been found that banks could disburse loans of Rs 23,000 crore against the annual credit plan of Rs 43,200 crore in the current fiscal. So, the government has taken decision that it would park money in only those banks which would pass the benchmark of 33 marks on the four counts,” Modi said while interacting with reporters after a meeting between top officers of the government and the banks.
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 75 per cent and 80 per cent target of agriculture and priority sector lending, respectively.
“We found the banks’ performance unsatisfactory during the 39th state-level bankers’ committee meeting. It has been found that banks could disburse loans of Rs 23,000 crore against the annual credit plan of Rs 43,200 crore in the current fiscal. So, the government has taken decision that it would park money in only those banks which would pass the benchmark of 33 marks on the four counts,” Modi said while interacting with reporters after a meeting between top officers of the government and the banks.
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