The Hindu Business Line : ‘Indian banking system ranks high thanks to reforms’

Mr P. Chidambaram, Union Finance Minister, and Mr T.S. Narayanasami, Chairman and Managing Director, Bank of India, at the inaugural function of Tirunallar branch of Bank of India in Puducherry on Saturday.

Our Special Correspondent

Karaikal, Dec. 8 The Indian banking system now ranks first in the world thanks to major reforms in the sector in the last three-and-a-half years of UPA rule, said Mr P. Chidambaram, Union Finance Minister, on Saturday.

Inaugurating the 2,878th branch of Bank of India at Tirunallar in Karaikal district of the Union Territory of Puducherry, Mr Chidambaram said the Government was carrying out several reforms in the banking sector in the last 15 years.

He pointed out that there were fears some years ago that the Tamil Nadu-based Indian Bank and Kolkata-based UCO Bank might collapse but effective banking reforms had saved these major nationalised banks from danger. Mr Chidambaram said India had achieved the highest development growth rate of nine per cent for the first time because of the effective functioning of the banking sector due to various reforms.

He pointed out that a few banks, including the Bank of India, were racing to capture the second position in the country next to the State Bank of India. Bank of India had achieved total turnover of Rs 2,32,500 crore with Rs 1,33,300 crore deposits and Rs 1 lakh crore advances to various sectors.

Lending to agriculture

The Finance Minister said the UPA Government was according priority to the agriculture sector.

He said the Centre had fixed a target of advancing Rs 2,25,000 crore loan to the agriculture sector during the current year but it might exceed the target to touch about Rs 2,40,000 crore by March-end next year. Some States were are even providing crop loan at lesser rate of interest, he said.

Mr Chidambaram pointed out that India ranked first in the world in providing assistance to women self-help groups and said that nearly 30 lakh women SHGs were given loans to improve their economic condition.

All banks have been instructed to provide education loan for eligible students, the Minister said, adding that he would take suitable steps to ensure loans were provided in cases where loans were denied for genuine students.

The Finance Minister said the Government had received representations for according B-2 status (near Statehood) to the Union Territory of Puducherry and the Government would take a decision at an appropriate time.

Mr T.S. Narayanasami, Chairman and Managing Director, Bank of India, who presided over the function, explained the growth of the bank and said customers enjoyed ‘anywhere banking’ facility through 1,260 networked branches under Core Banking Solution.