Nitish Kumar says role of banks in Bihar `objectionable`

Describing role of banks in Bihar as "objectionable", Nitish Kumar said Cash deposit (CD) ratio in state was very low and said the state government would strongly take up the matter with the Centre.

PTI| Updated: Feb 17, 2014, 17:33 PM IST

Patna: Describing role of banks in disbursement of loans in Bihar as "objectionable", Chief Minister Nitish Kumar on Monday said that the Cash deposit (CD) ratio in the state was still very low and said the state government would strongly take up the matter with the Centre.
On suggestion of the chief minister that Legislative Assembly should hold a special debate on the topic, Speaker Udai Narayan Chaudhary announced that a special House committee would be constituted for the purpose.

Intervening during Short Notice question in the Vidhan Sabha, Kumar said that despite requests, the CD ratio in Bihar at 40 per cent was still dismal.

He alleged that banks which was receiving heavy cash deposits in the state were spending it by way of loans in other state.

He said if the banks does not improve their performance the state government would stop depositing money in such banks and would even withdraw deposits.

Kumar said he has repeatedly urged the bank officials during quarterly meeting with them to provide more education loan, farmers loan and for purchase of fertilisers but the things were yet to improve.

The Chief Minister said he had mentioned this to Union Finance Minister P Chidambaram when he had come to Bihar last year to attend a bankers meet.

He appealed to the House to rise above party politics and through a special discussion on the scenario "lets make a strong demand to the Centre to ask banks to improve their functioning in Bihar."

Earlier, answering the question of BJP`s Achutanand Singh, Industries minister Renu Kumari said that almost all the banks have faltered in sanctioning loan against the applications made. She said many of the banks had not given loan to anybody despite hundreds of applications submitted to them.