The Bihar government today hinted that it may penalise banks by denying government deposits for not opening sufficient branches despite instructions of RBI to reduce people's hardship on account of demonetisation.
"Such banks would be identified and instruction would be sent to Divisional Commissioners and District Magistrates to deprive them of government deposits," state Finance Minister Abdul Bari Siddiqui said after a meeting with bankers.
"Direction to this effect would be issued to concerned departments soon," he said in a statement.
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Siddiqui, who presided over state-level bankers meeting regretted that out of an annual target to open 1640 new branches by December 15 this year, 35 commercial banks, rural banks and cooperative banks opened only 87 new branches.
He issued details of banks giving their performance on this count.
State Bank of India which had to open 88 new branches could start only 32 branches.
Central Bank of India did not open any new branch against the target of 83 while Punjab National Bank opened only 7 new branches against target of 83, he said.
Other major banks like Canara Bank, UCO bank and Bank of India drew nought against promised target of 83, he added.
ICICI opened one branch against target of 60 while HDFC did not start any new one out of target of 60.
Performance of rural banks was also dismal.
Madhya Bihar Gramin Bank opened 11 new branches against the target of 75 while Bihar Gramin bank added 6 to its list out of target of 75.
State Cooperative Bank and Total Cooperative bank also did not open any branch.
Siddiqui took a serious note of representatives of many banks at the bankers committee meeting for betterment of coordination between banks and the government and said director level officials of banks to be present on such occasions.
The Bihar Finance Minister expressed unhappiness over poor response to applicants for loans in different sectors.
In the presence of Animal Husbandry Department Minister Awdesh Kumar Singh, he said out a total 8326 applications for loan for dairy, 7155 were approved and a sum of Rs 12,028 lakh sanctioned.
Similarly out of total 433 applications for fishery, 203 were approved and a sum of Rs 644 lakh sanctioned.
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