The Hindu : Tamil Nadu News : Thanks to reforms, Indian banking system ranks first in the world: Chidambaram

Online edition of India's National Newspaper
Sunday, Dec 09, 2007
ePaper

Tamil Nadu

Tamil Nadu

Thanks to reforms, Indian banking system ranks first in the world: Chidambaram

Special Correspondent

Says nine per cent growth rate is because of effective functioning of banks

OUTLINING THE AGENDA: Union Finance Minister P. Chidambaram addressing the gathering at Tirunallar in Karaikal district on Saturday. Collector N. Vasanthakumar (third from left) and T.S. Narayanasami (fourth from left), Chairman and Managing Director, Bank of India, are seen.

KARAIKAL: The Indian banking system ranks first in the world due to major reforms implemented in the sector in the last three and half years of UPA government’s rule, Union Finance Minister P. Chidambaram said on Saturday.

Inaugurating the 2,878th branch of Bank of India at Tirunallar in the district in the Union Territory of Puducherry, he said the government had been carrying out several reforms in the banking sector in the last 15 years. There was a fear a few years ago that the Tamil Nadu-based Indian Bank and the Kolkata-based UCO Bank might collapse, but the effective reforms saved the two major nationalised banks.

India had achieved the highest development growth rate of nine per cent for the first time because of the effective functioning of the banking sector.

A few banks, including Bank of India, was in the race to capture the second position next to State Bank of India. Bank of India had achieved a total turnover of Rs.2,32,500 crore with Rs.1,33,300 deposits and Rs.1 lakh crore advances to various sectors.

Priority to agriculture

Mr. Chidambaram said the UPA government accorded priority to the agriculture sector and it would continue in the future. The Centre had fixed a target of advancing Rs.2,25,000 crore loan to the sector during 2007-08, but it might exceed the target to touch about Rs.2,40,000 crore by March next.

The increased advances to the sector was due to the reduction of interest on crop loans at seven per cent per annum by the Centre. Some States were even providing crop loans at a lesser rate of interest.

India ranked first in the world in providing assistance to women self help groups. About 30 lakh women SHGs were given loan for setting up small business and improve their economic condition.

All banks had been instructed to provide education loan to eligible students. Steps would be taken if the loans were denied to genuine students. Besides, the government had allocated Rs.1,530 crore for providing scholarships to 15 lakh students, particularly girls, from the minority community.

B-2 status

The Minister said the government had received representations for granting B-2 status (near Statehood) to Puducherry and a decision would be taken at an appropriate time.

He said he would consider giving backward district status to Karaikal if the Puducherry government sent a proposal to the Centre. The National Rural Employment Guarantee Scheme would be implemented in the district from April 1 next, paving the way for employment to rural people to help them earn a daily wage of Rs.80.

T.S. Narayanasami, Chairman and Managing Director, Bank of India, presided over the function.

Outlining the bank’s growth, he said the customers were having ‘anywhere banking’ facility through 1,260 networked branches under Core Banking Solution.

Earlier, Collector N. Vasanthakumar and MP M. Ramadass spoke.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu