Staff Correspondent

DHARWAD: If micro-credit is made available to the poor without insisting on collateral, the country can join the ranks of the developed nations within a decade, economist and former chairman of Syndicate Bank Thingalaya has said.

Addressing senior managers of the Karnataka Vikas Grameen Bank here during his visit to Dharwad, Dr. Thingalaya said creating a peaceful situation in the country was not possible as long as the country was in the grip of poverty.

The systematic delivery of micro-credit was possible only through Grameen Banks to eradicate poverty, he added.

To encourage Regional Rural Banks (RRB), the Government should keep its funds in these banks and release its grants and funds through the RRBs. This would enable RRBs to lend at cheaper rates, he added.

M. Dhananjaya, chairman, KVG Bank, said the bank had provided credit linkage to 5,700 self-help groups to the extent of Rs. 41 crore. The bank had reduced the rate of interest on loans to self-help groups by 1.5 per cent.

Moodithaya and Shetty of the Management Institute, NITTE, were present. Public Relations Officer Ullas Gunaga conducted the programme. G. Subbarao, General Manager of the bank, welcomed the gathering.

More In: KARNATAKA | NATIONAL