Expected to convey problems in greater detail to the finance minister
When finance minister Pranab Mukherjee comes to Kolkata on October 24 to meet the heads of public sector banks in the east, the minister might prod individual banks on half-yearly targets.
In his first region-specific meeting with the bankers, the finance minister is likely to examine in details the credit growth of individual banks to sectors like agriculture, infrastructure, real estate and small and medium enterprises, something which generally does not happen during conventional meetings of bankers with the finance minister in Delhi. That is one of the main reasons behind making the review meeting region-specific.
Mukherjee is also likely to review , the implementation of government projects like the government's flagship rural job guarantee scheme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with each and every bank in the region, according to senior bankers who will attend the meeting.
“The discussions will be more region-specific, and banks will also get to know the areas in which they need to improve. For example, apart from some general issues, focus in the east might be on financial inclusion,” said a senior official from a Kolkata-based bank.
The tour, which will kick start from Kolkata, is part of Mukherjee's new plan to meet bankers from all the four regions separately on a quarterly basis, rather than meeting them all in Delhi.
“I don't think the minister will raise issues like interest rates in the meetings. Rather, he is likely to focus more on credit to sectors like agriculture, SMEs, housing, loans etc. I think, the idea behind the regional meetings is in-depth discussion with individual banks,” said the head of public sector bank based in the west.
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Apart from the usual topics of discussion, the impact of stimulus packages would be reviewed by the minister, said bankers.
Banks too have a reason to cheer, as they will be able to put forth region-specific problems in front of the finance minister in greater details.
“Region specific meeting with banks is a much better way of interaction. Banks will be able to convey their problems in greater details to the finance minister, who in turn can talk to the state government if needed, to sort them out. Also, he will be able to review banks on a quarterly basis in greater details ” said S K Goel, chairman and managing director, UCO Bank.
“The meeting will be more meaningful and personalised than the usual ones,” said S C Gupta, chairman and managing director, United Bank of India (UBI).
The meeting would also be attended by regional representatives of National Bank for Agriculture and Rural Development (Nabard) , Sidbi, National Housing Bank and India Infrastructure Finance Company Limited (IIFCL).
“I think, the meeting will review credit flow to agriculture, weaker sections of the society, infrastructure, housing and education loans in particular. It will give a sharper focus to issues.
Generally, in Delhi there are many banks and not much attention is paid to individual bank,” said to P Mohanaiah, CGM, Nabard. Earlier, such zonal meetings used to happen with the finance or the banking secretaries, mostly through video conferencing, according to bankers.