FM calls on banks to do more for economy

Union finance minister P Chidambaram has called on the Indian banking sector to contribute more to the GDP growth. He said, banks must increase their share in the GDP from 35 per cent to 50 per cent so as to achieve an over 8 per cent growth over the next 10 years.

Speaking after inaugurating the centenary public library built by the Corporation Bank here on Sunday, he said, "India's economy appears to be of high growth and it is the duty of the government, banks, depositors and borrowers to ensure that nothing comes in the way of growth."

He said, India's potential in the manufacturing sector has not been harnessed fully. India has the potential to be the world's greatest manufacturing country. By 2010, India's GDP growth should reach 10 per cent while the growth in agriculture sector being 4 per cent, he added.

"The UPA government had taken the bold step to provide agriculture loan at a 7 per cent interest. The government has laid special emphasis on development of agriculture. The fact is that co-operative credit system in our country has collapsed and there is a need to revamp it," he stated.

To chalk out the future plans, the finance ministry has convened a meeting of all chairmen and managing directors of banks and Nabard officials at New Delhi on March 22, he said.

Speaking on the occasion, Karnataka chief minister H D Kumaraswamy said that the state needs theme cities like health city, IT city and such others. He said, measures have been taken to speed up the works of Bangalore and Mangalore airports.

V K Chopra, chairman and managing director, Corporation Bank said, the Bank has successfully completed the first phase of commissioning 25 village libraries "" 15 in Karnataka, seven in Andhra Pradesh and three in Tamil Nadu as part of the bank's centenary celebrations.