The Hindu Business Line : `Financial inclusion is the biggest challenge for banks'

FOUNDING DAY: (From left) Mr K.C. Chakarabarty, CMD, Indian Bank; Mr P. Chidambaram, Union Finance Minister; Mr KR. Periakaruppan, Minister for HR&CE, Tamil Nadu; and Mr M.A Siddique, Sivaganga District Collector, at a function in Kallal near Karaikudi on Wednesday. — K. Ganesan

Kallal , Tamil Nadu Aug. 17

Taking the services of the nationalised banks to the lowest strata of the society is the biggest challenge and the introduction of the `no frills account' scheme in banks is a step in the direction of financial inclusion of all sections, said the Union Finance Minister, Mr P. Chidambaram. He was inaugurating the 1404th branch of Indian Bank with core banking and ATM facility to mark the 100th Founding Day of the bank, here on Wednesday.

Appreciating Indian Bank for its turnaround performance, he said , the bank attained a business volume of Rs 63,290 crore and gave a dividend of Rs 101 crore to the Government out of a net profit of Rs 504 crore for 2005-06 and notably, its net NPA was brought down to 0.79 per cent, he mentioned.

Financial Inclusion

Earlier, the Chairman and the Managing Director of the bank, Dr K.C. Chakrabarty, said that reforms must work for the poor as 75 per cent of the population had no access to banks and inclusive banking would be the driving force for Indian Bank in the years to come. The bank, in the Union Territory of Pondicherry, had taken up a national pilot project of financial inclusion and Kallal was adopted for the purpose in Tamil Nadu, he added.

The Finance Minister,launched a new deposit scheme — Ind double Centenary Certificate — under which the deposits would double in 100 months. He also disbursed loans to beneficiaries under various schemes. The State Minister for Hindu Religious and Charitable Endowments, Mr K.R. Periakaruppan, and the Executive Director of the Indian Bank, Mr M.S. Sundararajan, participated.

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`Financial inclusion is the biggest challenge for banks'