The Hindu Business Line : Kerala achieves total financial inclusion

Highlights
The total deposits of commercial banks in the State as of September this year touched Rs 97,113 crore.
Of this, domestic deposits accounted for Rs 65,423 crore and non-resident deposits for Rs 31,690 crore.
Disbursements to the agriculture sector were Rs 6,207 crore or 53.5 per cent of the year’s target.

Our Bureau

Thiruvananthapuram, Dec. 24 Kerala has achieved total financial inclusion, with every household in the State now possessing at least one bank account.

Though Kerala achieved total financial inclusion by September 30 this year, the formal declaration was made on Monday by the Union Minister of State for Finance, Mr Pawan Kumar Bansal, at a meeting of the State Level Bankers Committee (SLBC).

‘Meaningful credit’

Total financial inclusion is just the beginning and banks should now focus on ensuring that the benefits of inclusion such as “meaningful credit” reach the people, he said.

Kerala’s banking sector has done well on several fronts such as assistance to self-help groups and ensuring a credit-deposit ratio of 69.66 per cent as of September this year, he said.

Yet, more attention must be given to increasing disbursements to the agriculture sector, he added.

Advances

Similarly, Kerala, like many other States, has not done too well on advances under the Differential Rate of Interest Scheme, he said.

Against total advances of Rs 67,648 crore, the advances in Kerala under the Differential Rate of Interest Scheme are only Rs 12 crore. Banks must take steps to address this, he added.

According to figures released by the SLBC, over 12.7 lakh savings bank accounts, including 8.7 lakh ‘no frills’ accounts were opened during the drive for total financial inclusion.

Over 11.82 lakh households were covered during the campaign.

The total deposits of commercial banks in the State as of September this year touched Rs 97,113 crore. Of this, domestic deposits accounted for Rs 65,423 crore and non-resident deposits for Rs 31,690 crore.

In fact, during the first half of the current fiscal, non-resident deposits have declined by Rs 1,613 crore when compared to the corresponding period last year.

Other Disbursements

Disbursements to the priority sector during the first six months of the current fiscal were Rs 12,510 crore against the full year’s target of Rs 30,0018 crore.

Disbursements to the agriculture sector were Rs 6,207 crore or 53.5 per cent of the year’s target, while those to the small-scale industries sector were Rs 928 crore or 19.53 per cent of the annual target.