Indian banks can weather impact of drought: RBI
Quotes

Indian banks can weather impact of drought: RBI

Last Updated: Tuesday, August 7, 2012, 16:09
 
 Comment 0
 
Indian banks can weather impact of drought: RBI
New Delhi: The Reserve Bank on Tuesday said Indian lenders are resilient enough to weather the pressure on farm loans caused by drought like situation because of deficient monsoon.

"Whenever there is drought, there is a pressure (on farm loans). But we have sufficient rehabilitation measures so that banks can weather it out," RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of function here.

Indian banking system, he added, "has enough resilience (and) will be able to face the stress".

Finance Minister P Chidambaram had said the government will converge the (Mahatma Gandhi National Rural Employment Guarantee Act) and other schemes to meet the challenges of drought-like situation in several states and enhance imports of commodities in short-supply to control price rise.

He said the contingency plans are in place to help farmers replant alternate crops as well as supply drinking water and fodder.

Monsoon is the life-line of the agriculture sector as only 40 percent of the cultivable area is irrigated. Rain has been 20 percent lower during June-July, affecting kharif crops mainly coarse cereals and pulses.

Karnataka, Gujarat, Maharashtra and Rajasthan are facing drought-like situation.

Last week, Empowered Group of Ministers (EGoM) on drought had approved diesel subsidy of 50 percent to farmers for saving standing crops, and a Rs 2,000 crore package for states affected by drought-like situation.

Earlier, speaking at the conference organised by Sa-Dhan, Chakrabarty said financial inclusion will require well functioning and efficient financial markets.

He said to achieve financial inclusion, there is a need for provision of full range of financial services, credit, deposit, remittance as well as pensions and insurance and also reaching out to the remote markets.

PTI



First Published: Tuesday, August 7, 2012, 16:09


Comments


comments powered by Disqus
World Economic Forum 2015
World Economic Forum 2015
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune
World Bank`s Top 10 Places for Business
World Bank`s Top 10 Places for Business
India`s top ten billionaires
India`s top ten billionaires

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved