BoI to issue 1 lakh ATM-enabled Kisan Credit Cards

The Bank of India (BoI) is planning to issue one lakh ATM-enabled Kisan Credit Cards by the end of this fiscal.

Addressing a press conference here on Thursday, M Balachandran, chairman and managing director of BoI, said, "We are targeting to issue one lakh cards by the end of March. So far, we have issued only 10,000 such cards."

The bank recently introduced ATM-enabled Kisan Credit Cards across the country, which enables farmers to withdraw up to Rs 50,000 through ATMs.

Balachandran said about 8 lakh Kisan Credit Cards that the bank had issued in a phased manner can be converted into ATM-enabled cards. The bank was giving priority to agricultural lending, and of the total domestic credit of Rs 49,513 crore, agricultural advances were Rs 7,918 crore, he added.

He said the bank had computerised all the 2,600 branches including rural branches, and had networked 900 branches.

"Currently, we have 238 loss-making branches and are taking steps to convert them into profit-making units gradually. There are no plans to close down the loss-making branches."

To attract more customers, BoI has introduced a 'no-frill account' scheme. Under the scheme, rural customers can open accounts with just Rs 50 while it is Rs 100 for the urban customers. The bank could provide ATM facility to these customers too, he said.

"The bank has adopted 101 villages across the country during this fiscal, and we will transform these villages into economically developed centres in all aspects," he said.

Currently, the bank's net NPA is 2 per cent, and it is planning to reduce it to 1.5 per cent by the end of this fiscal.

The bank also has a tie-up with the Japan Bank for International Cooperation for a loan of 5 billion yens.

"Indian customers who plan to buy machinery from Japan can seek loans through our bank," he said.

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Farmer-friendly

The cards will enable farmers to withdraw up to Rs 50,000 through ATMs

The bank is giving priority to agricultural lending, and of the total domestic credit of Rs 49,513 crore, agricultural advances were Rs 7,918 crore

Rural customers can open accounts with just Rs 50 under the 'no-frill account' scheme