BUSINESS

Banks see signs of economic revival in Wayanad

Special Correspondent

KOZHIKODE: Major banks have reported signs that point to the revival of economic activities in Wayanad district.

Officials who attended the recent district-level meeting to review performance of banks in Wayanad said the increase in volume of credit disbursement in the first half of the current financial year was an indication of the revival of economic activities.

The last six years had been bad for Wayanad's economy. The officials, however, were quick to add that the crisis in the agriculture sector, arising mainly from decline in prices of farm produces, had not been defused.

At the meeting, it was also decided to speed up credit disbursement. Banks disbursed Rs. 265.49 crores under priority sector in the first half of 2005-06 financial year, it was announced at the meeting held in Kalpetta.

Out of this, Rs. 221 crores was disbursed to agriculture sector, Rs. 2.39 crores to SSI sector and Rs. 42.10 crores to other activities in the priority sector. Last year, total disbursement to priority sector in the first half was only Rs. 141.85 crores. This year, in the first half of the financial year, credit disbursement increased to more than 187 per cent when compared with the performance of the first half of last year. The target of credit disbursement for the current financial year is Rs. 650 crores and out of this, Rs. 524 crores is earmarked for agricultural sector.

The credit-deposit ratio also increased to 173 per cent at the end of September, 2005.

The total deposit outstanding in the district as on September 2005 is Rs. 646.37 crores and the volume of outstanding loan is Rs. 1,115.28 crores.

Wayanad District Collector Ashwini Kumar Rai, R.Vinod Murari, Divisional Manager, Canara Bank, S.A. Nair, Assistant General Manager, RBI, P.S. Radhakrishnan, Asstistant General Manager, NABARD, S. Pavithran, Manager, Lead Bank (Canara Bank) and K.T. George, Officer- Lead Bank were among those who attended the meeting.

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