SBI Kerala circle inaugurated

By Our Staff Reporter

THIRUVANANTHAPURAM, NOV. 25. The Union Minister of State for Railways, Mr. O. Rajagopal, has said that the Banks should treat information technology and tourism as priority areas and finance private entrepreneurs in these sectors in the State.

Inaugurating the Kerala circle of the State Bank of India here this evening, Mr. Rajagopal said with the opening of the new circle, banks should finance more private ventures in both the sectors. There had been complaints about the low credit deposit ratio in the State. But a dearth of viable projects and an ideal industrial milieu are the main problems which impedes the economic and industrial growth of the State.

The SBI and other allied banks have deposits to the tune of Rs. 12,710 crores and the scheduled commercial banks Rs. 38,932 crores. The SBI has given credit worth Rs. 5,373 crores and the scheduled banks Rs. 16,000 crores. This shows that the problem was not with the SBI credit policy but the lack of an investor- friendly climate and feasible projects. Kerala has missed the bus as far as industrial development was concerned. So far not much thrust was laid on information technology. Of late there is an awareness in this regard. It is a welcome development, he said. Malayalis have made a significant presence in the industrial scenario in Tamil Nadu and Mumbai. This shows that those who have the potential were reluctant to invest in Kerala. The situation should change, he said.

Government intervention was not possible in all sectors. Private entrepreneurs too have to be given due importance. Till recently the concept was that the Government should perform all these tasks. Now there is an attitudinal change, he said. Kerala does not have huge iron and coal reserves but can focus on IT and tourism and hence the thrust should be on these areas in future, he said.

The Electricity Minister, Mr. S. Sarma, in his presidential address said that the credit deposit ratio was very low in the State. When the Chief Minister held talks with the SBI management, there was an understanding to raise the CDR to 50 per cent from the 45.78 per cent in 1996. But now it has fallen to 45.78 per cent. The committee appointed by the Reserve Bank of India to study the issue had said that the CDR in the State should be 58.5 per cent by March 2000.

Cutting across differences, all parties had supported the nationalisation of banks and the post-nationalisation period saw its results too. The State Government is opposed to the new economic polices of the Centre and the move to privatise the banking sector as it would endanger the nation's economy, he said. The banking staff too are on the warpath. He urged the Centre to reconsider its policy to privatise the banking sector.

The chief general manager, Kerala circle, Mr. K. Hariharan, welcomed. The chairman, Mr. Janki Ballabh, the managing directors, Mr. S. K. Mukherji and Mr. Vepa Kamesam, the all-India State bank of India Officers' Federation general secretary, Mr. Santha Raju, and the all-India State Bank of India Staff Federation secretary, Mr. Y. Tharakanath, were among those who spoke. The Chennai circle chief general manager, Mr. B. Ramachandra Rao, proposed a vote of thanks.

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