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Our Bureau

New Delhi , June 3

CONSOLIDATION of regional rural banks (RRBs) may gather further pace, with the Finance Minister, Mr P Chidambaram, set to give his nod for such a process in nine States.

If a sponsor bank had more than one RRB in a State, all the RRBs in that State under that sponsor bank should be consolidated into one RRB, as per the proposed policy.

"Nine States have given their approval. It awaits my approval which I hope to give today or tomorrow and then the consolidation of RRB under one sponsor bank in each State would take place, I am told the process can be completed by August 31," Mr Chidambaram told reporters after a meeting with public sector bank chiefs here on Friday.

The Finance Minister also said that an indicative farm sector credit target of Rs 1,41,000 crore for 2005-06 had been set as against the last year's achievement of Rs 1,15,000 crore.

Further, Mr Chidambaram said that warehouses and godowns have been identified as a potential area for vastly expanding credit. "There is a 25 per cent subsidy on setting up warehouses and godowns. It's a profitable business", he said.

Stating that the government was keen that agri-clinics are expanded in a big way in the current year, Mr Chidambaram said that he has asked banks to come up with advertisements to invite qualified persons for setting up agri-clinics.

He also said that a leading bank in Tamil Nadu had been asked to come up with a rehabilitation scheme within two weeks for tsunami-affected salt workers and salt pan owners in that State.

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