The Hindu Business Line : Credit propels economic activity: Chidambaram

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Madurai Feb. 11 ``Credit propels economic activity. It is not a crime. While intelligent people tend to save, the more intelligent avail themselves of credit and prosper. The rise of the Ambani, Tata and Birla groups would not have been possible but for the provision of credit. Those who take credit, however, must return the same for further use'' was the underlying theme of the address of the Union Finance Minister, Mr P. Chidambaram, during the course of the opening-spree of bank branches in and around Karaikudi, near Madurai, on Friday.

He inaugurated in a single day, three different bank branches and two on-site ATMs besides distribution of loan assistance to self-help groups, students, PMRY beneficiaries and small enterprises.

He inaugurated the 57th and fully computerised branch with Internet banking facility of Andhra Bank together with an on-site ATM at Karaikudi, the 57th branch of Vijaya Bank with core banking facility together with an on-site ATM at Kothamangalam in Tamil Nadu and the 1621th branch of Indian Overseas Bank at Thiruppattur. The branch at Kothamangalam is the first in the State to be solar powered and is provided with satellite connection via VSAT.

On the rising inflationary trend, Mr Chidambaram said the RBI has taken the initiative to contain the same within limits without affecting the growth process, with suitable guidance to banks. At Kothamangalam, he said that in respect of educational loans, another thrust area of the Government, Rs 12,106 crore has been disbursed to 10 lakh students by the end of December 2006. This is expected to double during the current year, he added. At Thiruppattur, he said the aim was to carry to the lower strata, the accessibility to credit. It is with this purpose that differential rate of interest was practised, he said.

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