The Hindu : Tamil Nadu News : Karur Collector flays private banks for refusing loans to eligible students

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Saturday, Dec 19, 2009
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Tamil Nadu

Karur Collector flays private banks for refusing loans to eligible students

Staff Reporter

KARUR: Some new age private sector banks are not adhering to the Reserve Bank of India guidelines on extending education loan.

There have been complaints regarding the disposal of loan applications, Collector J. Uma Maheswari observed here on Friday.

Speaking at the district level review committee meet of the bankers Dr. Maheswari pointed out that a couple of new age private sector banks did not consider education loan applications from eligible candidates in their jurisdiction.

The services were thus denied to students aspiring for a better career.

Adhere to RBI guidelines

Banks should scrupulously adhere to the guidelines and duly dispose of the applications based on merit. In that regard, she asked the RBI Assistant General Manager to look into the matter immediately and set things right besides ensuring that the deserving, eligible and the right candidates were not turned away.

Dr. Maheswari also faulted some banks for failing to forward the report on crop insurance scheme for notified crops for the kharif season. Banks had to collect the premium without fail and the progress report had to be forwarded to the Lead Bank Office but compliance has been far from desirable, she noted.

As only three months were left for the conclusion of the financial year, the banks have to expedite sanction and disbursal of credits especially for the government sponsored schemes to meet the targets, Dr. Maheswari said.

However, she complimented the banks for their noteworthy performance in several sectors for the quarter ending September 2009. Under the priority sector advances, the banks in Karur district had disbursed Rs. 604 crore as against the target of Rs. 558 crore up to September 2009 for an achievement of 108 per cent. The performance under agriculture sector credit was 120 per cent while under the non farm sector it was 100 per cent and that under the Other Priority Sector the achievement was 101 per cent. The Collector urged the banks to hold the trend until the end of the fiscal.

The total deposits in the banks in Karur district stood at Rs. 2,004 crore while the advances totalled Rs. 2,540 crore. The credit deposit ration was 127 per cent against the RBI norm of 60 per cent. She lauded the banks for exceeding RBI norms in all categories except under advances to the weaker sections and DRI advances.

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