Bankers of the State, though scored well in taking their credit-debit ratio (CD ratio) beyond the national benchmark of 60 per cent for the first time with 61.51 per cent as per March 31, 2015 figures, leaping non-performing asset (NPA) proved to be a big grader. In Jharkhand the bad debt has reached 5.6 per cent of the total lending against the bar set nationally with 4.74 per cent.
The issue came for discussion prominently in 51st State level Bankers Committee (SlBC) meeting on Thursday in which vacancies of Certificate Officers, missing updated and computerised land records and support from the Government side were posed as major contributors to the problem.
“I am aware about the loans turning bad in the State. I can assure you that in the process of loan recovery the Government is with the bankers and ready to help fully,” said Chief Minister Raghubar Das while addressing the meeting. Soon after that the Committee proposed that Government machinery, including executive bosses should be roped in to educate borrowers that just taking loans is not their right but paying it back is equally important in their larger interest in the process to do away with loan waiver anecdote.
Nevertheless, the CM stressed for greater role of the banks in encouraging women entrepreneurship, their skill upgradation, disbursal of education loans, in issuing Kissan Credit Cards (KCC), farm loans etc. “You have done a great job in making Pradhan Mantri Jan Dhan Yojna (PMJDY) a huge success. You should also set example in a similar fashion on these fronts as well. Jharkhand is a poor State and our 70-80 per cent population resides in villages. You should focus more on rural areas. Fix targets for KCCs, farm credits, advances to women and for priorities like that,” added the CM.
Against the targeted 40 lakh, the banks have been able to issue only 19 lakh KCCs so far in which 4.6 lakh are the new ones for the farmers. During 2014-15, Rs3041 crore of farm loan has been issued in the State.
looking at security scenario, the CM assured the bankers, especially women employed with them who remain apprehensive about their positing in rural areas, saying that firm strides on that front would be his priority in coming months. “People are waiting for fast paced development and we cannot allow extremists or other anti-socials hoodwinking under their masks to take advantage of the situation and challenge the system. We have to act fast and role of banks would be crucial into that,” said Raghubar Das.
However, when the CM was assuring the bankers, none of his Secretary from any Department was present on the venue, putting a question mark over sincerity behind. later Specials Secretary, Agriculture, Puja Singhal and Revenue and land Reform Secretary KK Soan arrived for a few minutes but not before the CM’s departure.
Regional Manager of RBI MK Verma reiterated the role of banks in organising at least one financial literacy programme every month in villages which was mandated and expressed dissatisfaction on this front in Jharkhand. He also underlined need to open more bank braches in rural areas to sustain the infrastructure created the PMJDY.