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Bihar govt decides to boycott the non-performing banks
Patna, Aug 31: Bihar government will boycott and close its accounts in nationalised and private banks whose performance in the disbursement of loans under different developmental schemes were not found satisfactory.
Patna, Aug 31: Bihar government will boycott and close its accounts in nationalised and private banks whose performance in the disbursement of loans under different developmental schemes were not found satisfactory.
The blacklisting of the banks would be completed in a fortnight, institutional finance minister Ashok Kumar told a news agency here today.
The government would also make an appeal to the people through Chief Minister Rabri Devi to boycott the blacklisted banks, he said. The ministry has constituted a committee to prepare a list of banks whose credit-deposit (CD) ratio was low and based on its recommendations, the government would boycott them and withdraw cash from these banks and transfer it to other banks, he said.
The CD ratio of banks in the state on an average was 24:60 against the reserve bank directive of 60:40, the sources added.
He said the state government has made up its mind to come hard on the banks having low CD ratio despite of repeated reminders to them to enhance their performance, and added he had, during meetings with the senior officials of many lead and non-lead banks and private banks, asked them to "pull up their socks or else be ready to face the boycott." Supreme Court appointed one-man probe panel by N C Saxena, that visited the state recently to inquire into slow progress in the implementation of certain central development schemes, was also told about the uncooperative attitude of the banks, he said.
Bureau Report
The government would also make an appeal to the people through Chief Minister Rabri Devi to boycott the blacklisted banks, he said. The ministry has constituted a committee to prepare a list of banks whose credit-deposit (CD) ratio was low and based on its recommendations, the government would boycott them and withdraw cash from these banks and transfer it to other banks, he said.
The CD ratio of banks in the state on an average was 24:60 against the reserve bank directive of 60:40, the sources added.
He said the state government has made up its mind to come hard on the banks having low CD ratio despite of repeated reminders to them to enhance their performance, and added he had, during meetings with the senior officials of many lead and non-lead banks and private banks, asked them to "pull up their socks or else be ready to face the boycott." Supreme Court appointed one-man probe panel by N C Saxena, that visited the state recently to inquire into slow progress in the implementation of certain central development schemes, was also told about the uncooperative attitude of the banks, he said.
Bureau Report