Tamil Nadu - Sivaganga   

Our economy healthy, says Chidambaram

— Photo : K. Ganesan

A MILESTONE: Union Finance Minister P. Chidambaram lighting a lamp to mark the inauguration of the 2000th branch of UCO Bank in Sivaganga district on Saturday.

SIVAGANGA: The world financial crisis will not have much impact on India, as the country’s economy is healthy, Union Finance Minister, P. Chidambaram said on Saturday.

Speaking at a function here after opening the 2000th branch of UCO bank, he said the economy of several countries, where the growth clocked 4-5 per cent, had been badly hit. The growth rate of these countries had almost come to zero. But there was not much problem in India’s growth.

The average growth of the country was hovering around 9 per cent a year in the past four years. Owing to the global financial crisis, it might go down by 1 per cent or 1.5 per cent. It was only one step down in the phase of the spectacular growth.

Terming the crisis a tsunami, Mr. Chidambaram said it had caused a major damage to the countries where it centred round. Several prestigious banks in the developed countries had faced a threat to their survival. It also had a small impact on India. But all banks, both public and private, were much stronger. There was no need for any alarm among the public about their bank deposits. All banks, especially public sector banks, were well regulated, he said.

S.K. Goel, Chairman and Managing Director, UCO Bank, said the bank received many awards from the Central government and other agencies for properly implementing several schemes. He thanked the Finance Minister for ensuring enough liquidity to banks.

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