Pvt banks lending selectively in rural areas: PNB

The issue of private banks not participating in agricultural activities was raised today at the 102th meeting of the State-Level Bankers' Committee, Haryana, convened by the Punjab National Bank, the lead bank for Haryana, in Chandigarh.

PNB Executive Director J M Garg said 1,000 farmers' clubs were formed in Haryana since September, and the contribution of private banks was negligible. In order to meet the targets of priority sector lending, the private banks were lending to progressive farmers and not small and marginal farmers.

Garg, who was also chairperson of the meeting, in his keynote address said in order to provide much-needed relief to farmers and a large section of the rural poor during 2006-07, the RBI had asked the banks to provide production credit up to Rs 3 lakh at 7 per cent and claim subvention at 2 per cent from the apex bank. This will continue in 2007-08 also.

He said of 20 districts in Haryana 11 had been covered under financial inclusion and 100 per cent financial inclusion would be achieved by March next year.

In the remaining districts, 60 per cent of the households have been covered and all the households in the state will have access to credit in a few months.

In Haryana from September last year to September this year, Garg said 124 branches of commercial banks and regional rural banks were opened in the state, thus raising the number of branches from 1,750 to 1,874.