Bihar Chief Minister Nitish Kumar on Thursday rued the state's credit deposit (CD) ratio being far less than the national average and urged the banking sector to help bridge the gap.
Addressing the quarterly meeting of the state-level bankers' committee (SLBC) here, the chief minister also urged the banks to open branches in all panchayats of the state and offered of providing them space for the same.
"The CD ratio for Bihar is 45 per cent, far less than the national average of 75 per cent. This is despite the fact that the people of the state have always reposed great trust in banks, preferring these for depositing their hard earned money," Kumar told the meeting.
The chief minister said the address of RBI Deputy Governor Mahesh Kumar Jain at the SLBC gave him hope that things might look up for the state, which was making rapid economic progress.
"We are a densely populated, landlocked state. Hence we cannot expect investments for a large scale private industries here. But the state has demonstrated tremendous potential for growth in sectors like agriculture, dairy and fisheries. Those engaged in these businesses must be given due financial support," Kumar said.
The state's gross domestic product has soared from just Rs 25,000 crore less than two decades ago to the present level of Rs 2 lakh crore, he said.
"Nearly 89 per cent of our state's population lives in villages. They are engaged in agriculture, animal husbandry and pisciculture. The banks can provide them with valuable assistance. I would urge the banks to open their branches in all panchayats of the state. We will provide you with the necessary space in Panchayat Sarkaar Bhavans," Kumar said.
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Later, interacting with bank officials, Deputy Chief Minister Sushil Kumar Modi who also holds finance portfolio, said the facility of overdraft should be extended to nearly nine million people across 13 districts of north Bihar, who have been hit by flash floods.
He expressed dissatisfaction over KCCs (Kisan credit cards) being provided to only 2.19 lakh farmers last year as against a target of 10 lakh.
He also urged the banks to extend loans to teachers employed on contractual basis in accordance with their respective salaries.
Modi also suggested that names of those defaulting on loans in excess of Rs 25 lakh be made public.
He pointed out that the rate of recovery for loans given to self help groups by micro finance companies was as high as 99 per cent and that there was no reason why recovering money should be a problem.
The deputy CM said in the first quarter of this fiscal, 76 instances of cyber fraud involving a total sum of Rs 40 lakh have come to light.
He also expressed displeasure over instances of banks refusing to accept deposits in coins, saying this was causing problems to people and that adequate storage space must be ensured at all branches.