With the Odisha Government hardening its stand on banking sector, banks have not only extended more credit to the people, they have offset the Credit Deposit (CD) Ratio imbalance. Besides, Odisha has performed much better than national average so far as CD ratio is concerned.
Principal Secretary Finance Vishal Dev has appreciated the efforts of the banks and said that during Financial Year 2021-22, the achievement under Annual Credit Plan (ACP) has increased to 93.06% as compared to 88.39% of FY 2020-21. Interestingly, for the first time total priority sector loan disbursement crossed the landmark of Rs 1 lakh crore.
Dev was addressing the State Level Bankers’ Committee (SLBC) meeting here on June 23. He said so far achievement of ACP has gone up to Rs 1, 03,000 crore during 2021-22, while during 2020-21, it was Rs 78,000 crore.
The State Government had harped on more credit facility for the genuine loanees and banks have responded in a positive manner, for which such a huge jump has been recorded in achievement of ACP, it was told.
Similarly, CD ratio was dismal but after a direction by Principal Secretary Finance, the bankers have improved the CD ratio to a large extent. CD Ratio during 2020-21 was 56.45%, while in 2021-22, it has gone up to 72.55%. CD Ratio at national level is 71%, which is lower than Odisha.
Since Dev has taken over as Principal Secretary Finance, he has been harping on financial inclusion in an effective way and the thrust is on strengthening and streamlining the banking system.
While the State Government is insisting on setting up brick and mortar branches of banks, the Finance Department is in consultation with the RBI and NABARD in this regard. The SLBC has identified 200 Gram Panchayats (GPs) based on population ensuring parity among districts to open the brick and mortar branches on a priority basis by March 31, 2023.
So far as improving the Banking Correspondent (BC) structure is concerned, Dev harped on deploying more number of Self Help Group (SHG) members as BC agents.
Accordingly, more members of SHGs are allowed as BC agents in the State and they are helpful to cater to need of people in far-flung areas, where banking service is not available.
All banks have been asked to ensure completion of MoU signing with Mission Shakti Department for engagement of WSHG members as BC agents.
Dev advised that all districts in Odisha should be included in the ongoing campaign of 100% digital payment ecosystem.
He advised the Union Bank of India (Ganjam district) and Punjab National Bank (Sambalpur district) to ensure that their allotted districts reach the target of 100% digitisation well ahead of the deadline.
High level of pendency of applications at bank level is a major cause of concern for the applicants and delay in clearance of the applications was insisted by the Principal Secretary Finance. While there is improvement in clearance of applications, more timely action is needed in this regard, he told.
