The Hindu : Tamil Nadu / Coimbatore News : Collector urges bankers to increase advances

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Sunday, Jun 28, 2009
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Tamil Nadu

Tamil Nadu - Coimbatore

Collector urges bankers to increase advances

Staff Reporter

‘MSME entrepreneurs should not be harassed for repayment’

Coimbatore: District Collector P. Umanath on Thursday exhorted the bankers to increase their advances to balance the Credit Deposit (CD) ratio since there was a substantial increase in deposits without proportionate increase in advances.

The Collector’s observation came at the District Consultative Committee and District Level Review Committee meeting.

Appreciation

Appreciating the bankers for the good performance in Annual Credit Plan (ACP) of 2008-09, Dr.Umanath said that CD ratio of the district as on March 31, 2009 was good but it had declined from 173 to 158. He said that the bankers should reverse this trend and ensure that the CD ratio improved by increasing the lending.

Reacting to charges of recovery harassment by bankers, the Collector said that in a recessionary trend, micro, small and medium enterprise (MSME) entrepreneurs should not be harassed for repayment.

He said that recovery should be only in accordance with the norms laid down by the Reserve Bank of India (RBI).

The Collector urged the bankers to consider the request of MSME sector on advances and recovery on a case-by-case basis, looking at the repayment pattern and bank performance within the guidelines of the RBI since the district has high potential in MSME.

Educational loans

He told the bankers to concentrate on physical coverage under educational loans rather than financial targets.

The average size of the loan needs to be the parameter for review. To increase their advances to weaker sections, he suggested that bankers focus on Government-sponsored programmes.

Mr. Umanath also urged the bankers to open a branch in Karumbukkadai area as there were requests to do so from the minority community.

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