Monday, Dec 29, 2003
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By Our Staff Reporter
Inaugurating the centenary celebrations of the City Union Bank here yesterday, he said the banking sector, like the industrial sector, should have a composite structure. Rural banks were necessary for promoting development in villages.
Mr. Venkataraman said banking depended on borrowers. A bank that did not lend would go bust. At the same time, reckless lending would affect the bank itself. What was needed was a sound judgment on lending. He regretted that corruption had crept in in the banking sector too. A bank should be clean, as it is the trustee of the people and the country's economy, he said.
Expressing concern over depreciation of the rupee, Mr. Venkataraman said the value of the rupee was nine paise. What would be the state of the economy, if the value remained at this rate, he asked.
On the disinvestment policy, Mr. Venkataraman said public sector units were running on borrowed money. The income from the disinvestment process should be utilised for paying back debts and should not be treated as revenue. The huge foreign exchange reserves should also be used to pay back debts.
Justice A.R. Lakshmanan, judge, Supreme Court, asked the banks to go for out-of-court settlement, for recovery of loans and advised borrowers not to issue cheques which would bounce.
V.N. Rengachary, Advisor, Government of Andhra Pradesh, said the City Union Bank had become a major river coursing through the financial architecture of the country. The financial sector had become a centre of convergence.
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