The Canara Bank, a leading Public Sector bank working in the State, created ripples recently by donating Rs 5 crore to the Chief Minister’s relief fund post-Phailin. Also on November 19 last, the bank opened its 108th branch in the State to mark its 108th foundation day.
Narendra Dash of The Pioneer spoke to the bank’s DGM (Odisha Circle) RK Swain on a host of issues including the bank’s CSR initiatives in the State.
Why did your bank show the generosity of donating Rs 5 crore to the CM’s Relief FundIJ
Because, we are concerned about Odisha and welfare of its people. As a matter of fact, we decided to donate one day’s salary of our employees plus Rs 50 lakh, which amounted to Rs 2.5 crore. When we sent the proposal to our head office at Bangalore for approval, it upgraded the amount to Rs 5 crore.
What are the CSR initiatives Canara Bank has taken so far in the StateIJ
We have launched a scholarship scheme for meritorious SC/ST girl students. We give Rs 2,500 and Rs 5,000 per annum to each student studying in class V-VII and class VIII-X respectively. Around 169 students across the State have already been awarded this. Besides, we conduct regular eye check up, blood donation camps and charity programmes for the poor like distribution of blankets during winter etc.
What is your USP in comparison to your competitorsIJ
Our biggest USP is our low base rate — 9.95 per cent, as a result, we provide low-interest loans to our customers in housing and MSME sectors that attract more clients.
What special packages do you offer to farmers and small tradersIJ
We have devised a housing loan scheme for small and marginal farmers, whereby loan amount of four times of their income can be provided to them.
Moreover, the repayment is to be made during the harvest season, which will help the farmer to pay back at a time when they have the money. As far as MSME sector is concerned, we have formulated novel schemes like Canara Unnati and Canara Pragati, under which a project loan up to Rs 10 lakh under CGSTI scheme for setting up small industry can be given. The service charge for providing counter-guarantee for repayment of loan will be provided by the bank itself, which usually is not the case with other banks.
What is your CD ratio and exposure to priority sector lendingIJ
Our credit-deposit (CD) ratio is around 72-73 per cent, which is much higher than the RBI norms of 60 per cent. About exposure to priority sector lending, which covers lending to sectors like agriculture, MSME, self help groups etc, our exposure is 32 per cent, as against RBI norm of 40 per cent, which we hope to achieve in the near future.
Our priority sector lending during current fiscal stood at Rs 771 crore, out of which Rs 231 crore and Rs 5.07 crore are given to agro and SHG sectors respectively.
How is your branch networking in tribal belts, especially in KBK districtsIJ
Out of the 108 existing branches and 22 upcoming branches, we have already made our presence felt in Balangir, Subarnapur, Kalahandi, Rayagada and Koraput districts and two more branches in Malkangiri and Nabarangpur are to be opened shortly.