The Hindu : Tamil Nadu News : New strategy to stabilise economy

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Tamil Nadu

Tamil Nadu

New strategy to stabilise economy

Staff Reporter

Chidambaram hails the State budget

— Photo: R.M. Rajarathinam

New facility: P. Chidambaram, Union Minister of Finance, declaring open the Allahabad Bank branch at Pudukottai on Saturday.

PUDUKOTTAI: The Congress-led Central government has been adopting a double-pronged strategy to stabilise economy towards the path of progress by writing off loans sanctioned to those who are burdened with financial commitment and by sanctioning loans to promote commerce and industry, the Union Minister of Finance, P. Chidambaram said.

Declaring open the Allahabad Bank’s branch here on Saturday, Mr. Chidambaram came down heavily on those who criticised the Centre’s strategy in this regard and said that the United Progressive Alliance Government had a great responsibility in encouraging the trade and commerce sectors by allotting more loans. At the same time, realising the distress condition of the farming community, the Centre had written off far-loans to the tune of Rs. 60,000 crore.

He said that the rise in prices of certain imported commodities were beyond the control of the Centre, resulting in increase in their prices in the domestic market. The increase was maximum during the current financial year, forcing the Centre to hike the prices in the recent past. For instance, the price per barrel of crude oil which was 34 dollars in 2004, rose to 110 dollars this year. Similarly, the per tonne price of palm-oil shot up to 1300 dollars this month from 471 dollars in 2004. The Centre, he said, however initiated steps to keep the prices under control.

The Union Minister of State for Environment and Forests, S. Regupathy, said that the starting of new branches by a few banks in the district was indicative of the fact that the banking industry catered to the needs of the people of Pudukottai.

The Chairman and Managing Director of the Allahabad Bank, A. C. Mahajan, said that Pudukottai was the 2154th branch of the bank.

The bank has planned to start 18 more branches next year at centres including Hosur, Krishnagiri, Dindigul, Kancheepuram, Tiruchi, Cuddalore, Tambaram and Porur. The bank’s CD ratio in Tamil Nadu stood at 117 per cent.

The inauguration of the branch also marked the introduction of the new services by the bank all over the country – including the Internet banking, SMS banking, mobile banking and e-payment facility. Mr. Chidambaram who inaugurated the facilities, also gave away loans 58 persons to the tune of Rs.68.59 lakh.

The General Manager of the bank, R.K. Jain and the Collector, D. Uthirakkumaran, were among those who were present.

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