Telangana finance minister Eatela Rajender takes banks to task for tardy loan disbursal

The finance minister directed the bankers to implement the decision to help the small-scale industry.

HYDERABAD: The performance of banks with respect to implementing various bank-linked government schemes and also their attitude to extending loans to farmers and the poor came in for criticism from the state finance and agriculture ministers at a State Level Bankers Committee (SLBC) meeting held here on Thursday.

"There is no feeling among the public that bankers are here to help the common man," finance minister Eatela Rajender said. Stating that non-performing assets (NPAs) in the agricultural sector was just 5.38 per cent, he asked the bankers to divulge the details of NPAs of corporate companies for judging who the real defaulters were.

Asking the bankers not to harass the poor by insisting on security even for small loans, he said, "We are not asking banks to give loans to corporate companies. Our appeal to them is just help the poor and women's self-help groups. Even though the state government provided 50 per cent subsidy on tractors, banks insisted on deposits for issuing demand drafts in the name of farmers."

The minister continued, "Bankers should make the common man to have faith in the banking system by delivering good services. We are implementing several schemes for farmers and others without bank link. The government is giving subsidy up to Rs 5 lakh to the poor without bank link. But bankers think that they are actually giving the money to the public. Come out of this thinking. Shun your old habits and help the public. We are conducting several reviews with bankers. Yet, we are not getting the desired response from them. They should instil confidence in people about the banking system."

The finance minister directed the bankers to implement the decision to help the small-scale industry. The decision was accepted by bankers at a meeting held recently by industries minister KT Rama Rao. As directed by Rama Rao start skill development units in every district, he told the bankers.

'KEEP CASH': Rajender also wanted the banks to stock all branches with enough currency to enable farm to encash the cheques which the government would start issuing to them under Rythu Bandhu scheme from May 20.

Agriculture minister Pocharam Srinivas Reddy appealed to bankers to ensure that all the 58 lakh farmers got the money under the Rythu Bandhu scheme.

Principal secretary (finance) K Ramakrishna Rao, Nabard chief general manager Satyaprasad, RBI manager Subbaiah, SBI chief general manager Swaminathan and SLBC convener Mani Kandan participated in the meeting.

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