Admitting to the collateral damages done to overall financial health of the banking system, Bank of India’s General Manager RS Chouhan now feels sufficient hint in the air about recovery with lot more fitness than before. The signals, he said, suggest that the course correction has in fact done actualisation which was the need of hour for the financial institutions in the country.
“Now we have started getting positive signals after initial jolts the sector had received post-demonetisation and implementation of the GST. The aftereffects are fading away and what we are getting at present is the actual figures. In the fields like infrastructure or housing, for example, real users have come to the fore. Portion of black existing hugely (in these sectors) has been weeded out considerably and now the banks can evaluate better and finance more since greater pie of investment coming is in white,” said the GM (Planning, Strategy and Economic Intelligence Dept) in his interaction with a select group of journalists on Thursday.
Citing about another positive outcome after the twin reforms, RS Chouhan said that the stress on cashless economy has raised electronic footprints of financial transactions taking place. “We have recorded more than 100 per cent growth in electronic transactions in Jharkhand as well as other parts. This is a healthy atmosphere for the banking system,” he added.
Coming to BOI’s performance in the State, Chouhan informed that Ranchi zone had been regarded as top zone in the country, both in terms of business and potential.
“Mumbai may be big in terms of volume but we have recorded highest percentage growth in our business here. This prompted the BOI to launch ‘Ghar-Ghar Dustak’ initiative under which our officials approach customers at their doorsteps to know their aspirations with the bank, problems or grievances. This is to make us more customer friendly,” said the MD.
He admitted that credit-deposit ratio of the bank was not satisfactory in the State and also that he has instructed all branch offices, 554 in number scattered in all 24 districts of the State—BOI is the lead bank in 15 — to pull up their shocks.
“CD ratio is a concern for us but our credit is expanding which is aimed sufficiently to medium and smaller borrowers. Growth of Rs 808 crore on year to year basis since March has been registered in the advances in the State. NPA has also come down by 13 per cent,” he added.