Banks come under fire

Staff Reporter

HYDERABAD: Banks in the State capital are likely to come under fire for a poor record in disbursing loans after sanctioning them under various Government schemes, including Rajiv Yuva Shakti (RYS) and Prime Minister's Rozgar Yojana (PMRY).

City MLAs, including National Disaster Management Committee member Marri Shashidhar Reddy, were furious at the 36 banks that had grounded just Rs.139 lakh as loans against the sanctioned Rs.2,751 lakhs till October in the current fiscal.

The MLAs have called for "drastic" action against the banks during the District Review Committee meeting here on Monday.

The banks, which have fixed targets from the Government for loans for various schemes, mostly self-employment schemes, had a total target of Rs.12,676 lakh for the current fiscal.

The difference between the target and loans grounded till October 31 this year was Rs.12,537 lakh, a gap of 99 per cent.

`Action' time

A barely audible reply from one of the bank officials only enraged the MLAs, who pointed out that the reply was the same last year as well. According to District Collector Arvind Kumar, the corresponding period last year had only Rs.6641 lakh worth loans grounded, out of the targeted Rs.10,182 lakh.

Mr. Kumar said the performance of banks in the State capital was not at all up to the mark and asked the DRC to take action. While Mr. Shashidhar Reddy said all Government deposits to these banks should be stopped, Himayatnagar MLA G. Kishen Reddy said the banks had to be prosecuted since the schemes included those under the SC Corporation and District Minorities Finance Corporation apart from PMRY and RYS.

The Collector said he would write to the head offices of all the banks involved, showing the gaps in the grounding of loans even after sanctioning them.

The above-mentioned schemes had failed to take off in the State capital due to this aspect, he said.