Lending in affluent states way below target.
Public sector banks fell short of their lending targets to minority segments in 2009-10, according to the finance ministry data. Lending by banks to minorities in affluent states like Gujarat, Maharashtra and Delhi was far deficient, compared with that in the north-eastern states, Punjab, Himachal Pradesh and Jammu & Kashmir.
According to government rules, banks were required to give about 15 per cent of priority sector loans to the minorities in the year ended March 2010, but they could manage only 13 per cent. Almost 40 per cent of all loans have to be given to ‘priority sector’ that may include agriculture, loans to artisans, micro and small entrepreneurs, home loans up to Rs 20 lakh, among others.
| LAGGING BEHIND BANK LENDING TO MINORITY COMMUNITIES IN SELECT STATES IN 2009-10 (IN RS CRORE) | |||
| State | Target for lending to minorities | Actual Performance | Per cent of MSL target |
| Assam | 1,329 | 1,924 | 144.0 |
| Kerala | 11,298 | 15,106 | 133.7 |
| Punjab | 13,520 | 16,660 | 123.2 |
| Himachal Pradesh | 753 | 926 | 122.9 |
| Rajasthan | 4,630 | 2,699 | 58.3 |
| Delhi | 5,981 | 3,165 | 52.9 |
| Maharashtra | 17,139 | 8.655 | 50.5 |
| Gujarat | 5,341 | 1,860 | 34.9 |
| Source: Finance ministry data | |||
The government is giving thrust to lending to minorities, as it forms a part of prime minister’s 15-point programme for welfare of minorities. Five communities namely Sikhs, Muslims, Christians, Zoroastrians and Buddhists are treated as minority communities for the purpose of lending.
Loans to minorities in Maharashtra was half the target of Rs 17,140 crore, while it was 35 per cent of the Rs 5,341-crore target in Gujarat. In Delhi, banks gave only Rs 3,165 crore as compared to the target of Rs 5,981 crore, the data showed.
Banks gave Rs 15,106.13 crore in Kerala, compared with the target of Rs 11,298 crore, while in Punjab, they lent Rs 16,661 crore compared with the target of Rs 13,520 crore. Total outstanding loans to minorities at the end of March stood at Rs 1,11,659 crore.
In October 2007, the government had asked public sector banks to step up lending to minorities. Banks were told to increase the share of loans to minorities in the total priority sector lending from nine per cent to 15 per cent by March 2010.
A senior public sector bank official said one of the factors that put constraints on lending to minority communities was limited public awareness about the schemes.
Government has identified 121 districts, which have at least 25 per cent minority population, excluding those states/union territories where minorities are in majority.
Jammu & Kashmir, Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep are places where minorities have a majority.
