Taking strong exception to dismal rate of agriculture loan disbursement by banks during the current fiscal, the Odisha government has threatened to drop several banks from the list of banks eligible for investment of government and public sector funds.

The State has set a target disbursement of crop loan of Rs. 1,3,832.31 crore from 41 scheduled banks. However, after kharif season, banks have managed to give loan to the tune of only Rs. 5,226.12 crore registering an achievement of 37.78 per cent.

Similarly, in agricultural term loan segment, against the target of Rs. 5,686.80 crore, only Rs. 741.74 crore had been given out by September 30, which constituted 13.04 per cent.

In a recently held review meeting, it has been observed that the achievement of public sector banks in crop loan is 24.45 per cent, private sector banks (18.36 per cent), two regional rural banks (27.08 per cent), commercial banks (25.26 per cent) and cooperative banks (48.42 per cent).

As per minutes of review of crop loan disbursement, performance of major banks like State Bank of India and UCO bank are not satisfactory and the two banks have pulled down the aggregate achievement of the State to such a low-level.

“As kharif season is major crop loan dispensation season, the banks should have achieved at least 55 per cent of the annual target,” it says.

Performance of two public sector banks such as IDBI Bank and Syndicate Bank was far from satisfactory and it was decided that a notice would be issued to them as to why they should not be dropped from the list of banks eligible for investment of government and public sector funds.

Similarly, performance of three private banks such as HDFC, ICICI and Karnataka also came under scanner. In view of their dismal performance, these three banks would also be issued similar notices.

The State government threatens to drop several banks from the list of banks eligible for investment of government and public sector funds