Business Daily from THE HINDU group of publications
Monday, May 07, 2007
ePaper
Business Daily from THE HINDU group of publications Monday, May 07, 2007 ePaper |
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Opinion
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Letters Rural banking
"Banking on a rural shift" (Business Line, May 4) has raised optimism on the profitability potential of banks in rural areas. With agriculture no longer a completely viable activity in itself, thousands of marginal and small farmers generate additional income by going for employment in the nearby urban industrial centres or by venturing into small industrial activities which, in the long run, enables them to acquire vehicles and gadgets that make life more comfortable. Banks today are realising that there are pockets of great wealth in the rural areas, many parts of which are now characterised by a real-estate boom. Land prices are soaring, even on the cities' outskirts and in remote rural areas, enriching many an average farmer. By gaining their clientele, banks can expand their deposits and achieve higher business volumes. Women's groups are also spearheading social change in the rural areas, and several PSUs are undertaking creditable rural extension work in this area. The women's message of empowerment has come across loud and clear through the SHGs, which are growing rapidly in number. Training and awareness programmes conducted by the banks in rural areas have supported the income-generating activities of women and infused them with the confidence to venture into business and industrial activities. The bank finance extended to the SHGs is almost always repaid, with very marginal incidence of NPAs in this sector. The avenues before banks in rural areas are, thus, manifold. And if PSUs don't grab the opportunity now, the new generation banks will get there in a hurry. N. Radhakrishnan Tirupur
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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