PNB wary of recovery under govt schemes

Punjab National Bank is worried about the recovery of credit extented under the government sponsored schemes in Haryana. These schemes mainly include the PMRY (Prime Minister Rozgar Yozna), SJSRY (Swaran Jyanti Shahri Rozgar Yojna and SGSY (Swaran Jaynti Gram Swa-Rozgar Yozna).

According to Chairman and Managing Director K C Chakraborty, the state government should help the bankers in improving the recovery position under government sponsored schemes as it affects the recycling of public funds apart from giving rise to non-performing assets.

PNB suggested that the Haryana Public Money (Recovery of dues) Act and Haryana Agriculture Credit Operations and Miscellaneous Provisions (HACOMP) Act be amended to expedite the recovery of dues.

Addressing the 103rd State Level Bankers Committee Meeting of PNB for Haryana in Chandigarh today, he said that that the entire state of Haryana (rural) has been covered under 100 per cent financial inclusion.

Earlier, PNB's Financial Education and Credit Counselling Centre was inaugurated by the Minister of State for Finance Pawan Bansal in Chandigarh. Bansal distributed IT-enabled Biometric Smart Cards at Mauli Jagaran village in Chandigarh.

Despite the sluggish market conditions, banks in Haryana registered a growth of 50.69 per cent under the advances made to small and medium units during December 2006-07.

Bank deposits during the same period increased by 26 per cent, priority sector advances by 21 per cent, credit to agriculture by 29 per cent and credit to weaker section by 38.16 per cent in Haryana.

Chakraborty called upon the bankers to help the small borrowers availing credit facilities up to Rs 50,000 by dispensing with the practice of calling No Dues Certificate. Instead the banks may obtain Self Declaration Form from the borrowers, he said.