Tamil Nadu   

Chidambaram highlights banks’ role in economic growth and prosperity

PUDUKOTTAI: Nationalised banks play a vital role in bringing about the country’s economic growth and contribute to the overall prosperity of the nation, Union Finance Minister P. Chidambaram said on Saturday.

After declaring open the 2,701st branch of Canara Bank at Ponnamaravathy near here, he rejected the criticism that the starting of new branches would not help to achieve the desired goals. More branches were needed to reach out to the people.

“In fact, the former Prime Minister, Indira Gandhi, nationalised the banks to take the financial institutions closer to the masses. Prior to nationalisation, only the affluent benefited from the banking industry,” he said.

Likening a vibrant banking sector to the pulse of the heart, Mr. Chidambaram said that unless the banks were healthy, the country would not make any progress. The Congress-led United Progressive Alliance government fared far better than the BJP-led government in sanctioning loans: the credit flow to the farm sector stood at Rs. 2.50 lakh crore against Rs.84.435 crore sanctioned by the previous regime.

The credit support for the small-scale sector amounted to Rs. 2.47 lakh crore till the end of 2007-08, against Rs. 58,278 crore during the previous regime. While the outstanding sum in the education loan segment by the end of 2007-08 was Rs. 12.51 lakh crore, it was just Rs.19,337 crore by 2003-04.

Mr. Chidambaram lauded the efforts of Chairman and Managing Director of Canara Bank A. C. Mahajan for competing with other banks to secure a national rank in financial portfolio.

“The overall turnover of Canara Bank is extremely good.”

The Tiruchi Circle of Canara Bank alone had written off Rs.135 crore in farm loan, he said.

Mr. Mahajan said Rs.730 crore had been released for farm loan and Rs.100 crore for education loan during 2007-08.

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