Udupi Zilla Panchayat Chief Executive Officer Y. Naveen Bhat on Thursday urged banks in the district to offer more loans to farmers and entrepreneurs thereby enhancing credit to deposit ratio.
Presiding over the district-level review committee meeting for banking development in Udupi, Dr. Bhat said that while deposit collection was on a higher side in the district, lending was comparatively less. Lending should be at least 60 % of deposits as per the Reserve Bank of India norms, while it was just 45 % in Udupi.
As such, banks should scrutinise loan applications under different schemes without any delay and extend credit as early as possible wherever documents are in order. Dr. Bhat also urged banks to extend housing loans in a time-bound manner.
He asked banks to compulsorily scrutinise education loan applications being submitted through Vidlakshmi portal and take necessary action. They need to create awareness among the youth about loan for cage poultry farming being offered by the Animal Husbandry Department. Banks should also immediately sanction loans under Prime Minister’s self-employment scheme for street vendors. Assistant General Manager of Canara Bank (district's Lead Bank) M.Y. Harish said that banks have collected ₹ 27,560 crore deposit in the district achieving 12.82 % year-on-year growth during the second quarter of the financial year. There was 4.23 % year-on-year growth in lending with ₹ 12,418 crore being offered as loans and the CD ratio was 45.05 %.
During the second quarter, banks have disbursed ₹ 3,021 crore loan as against the target of ₹ 3,840 crore achieving 79 % of the target.
Assistant General Manager from NABARD Sangeeta Karta spoke. Dr. Bhat released the district credit plan on the occasion.
