HYDERABAD: “Perform well and get the business” was the gist of the message sent out by the State Finance department to bankers on Sunday. The Finance department will empanel banks to park the State government’s money. The primary condition for empanelment shall be that the bank should reach at least 50 per cent of the lending target programmes sponsored by the government as per the State Credit Plan/Annual Credit Plan during the previous financial years.
According to a GO issued by Special Chief Secretary (Finance) K Ramakrishna Rao, nationalised, public, private scheduled, regional rural banks and cooperative banks, excluding urban private banks with the State government will be eligible for empanelment for government banking transactions and placing of fixed deposits.
The performance of the banks shall be assessed by a screening committee appointed by the government through the State Level Bankers Committee at the State level and of individual branches at the district level by a District Level Committee. However, the State level screening committee shall take a final decision based on the merits of the case and circumstances.
The GO made it clear that to be deemed eligible for empanelment, the performance of the bank should, in general, be satisfactory, particularly in the areas of NPA management, business growth, net profits and mandatory publishing of audited results.