Performance of banks comes under scanner

Staff Reporter

‘Failure’ to extend loans for welfare schemes and adhere to norms decried

Kakinada: The alleged negligence of banks in extending loans for SC, BC and youth welfare schemes and failure to adhere to norms in general incurred the wrath of people’s representatives at the bankers’ district-level review meeting held here on Tuesday.

Credit delivery

Some banks were accused of merely passing on subsidies released by the government to beneficiaries rather than actually giving loans for different schemes and covering up their failures by painting a rosy picture of credit delivery, which should have been done to the full extent without any preconditions.

Though it was agreed that the accusations could not be generalised for the entire district, stringent action was sought to be taken after a comprehensive action taken report was submitted by August 1 on the basis of an inquiry done under the direct supervision of the Joint Collector.

While seeking a detailed report on their (banks’) actual performance in the district last year, Rajahmundry MP Vundavalli Arun Kumar said the objective of banks’ nationalisation appeared to have been defeated as there was still no change in their attitude.

MLC K. Durgesh said banks should bear their due share of responsibility to educate the masses about benefits of banking and contribute their mite to community capacity-building, which would motivate customers to put their borrowings to proper use and promptly repay the loans.

Nothing of this sort was happening, as the banks were apparently playing by their own rules.

The collective criticism of banks started when Pithapuram MLA Vanga Geeta complained that only a negligible number of applications made by Scheduled Castes for bank credit were sanctioned in her constituency as some banks acted as per their whims and fancies.

Rural Water Supply Minister P. Viswaroop said the banks were perhaps content with disbursing subsidies, which forced the loan-seekers to approach private lenders and micro-finance institutions. The way banks transacted business so far as the social sector was concerned seemed to corroborate the charges.

Lead bank manager (LBM) A. Shanmukha Chari, Rajahmundry City MLA R. Suryaprakasa Rao and Collector Dwivedi spoke.