Tuesday, December 19, 2000
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Sinha wants pvt banks to go rural 

Our Banking Bureau  
Mumbai, Dec 18: Finance minister Yashwant Sinha has asked private sector banks to expand their activities in the rural areas where the real strength of the country lies. Speaking at the diamond jubilee Function of Lord Krishna Bank in Delhi on Sunday night, Mr Sinha said, "Private banks, which were concentrated in a few metros, should go out to the rural areas, as India's real strength and financial muscle lies in those parts."

Minister of State for finance, Balasaheb Vikhe Patil said, "Private banks should re-orient their services to make it more customer-centric and cater increasingly to the social sector."Despite stiff competition from foreign banks, Mr Patil said, banks have to progress further through their expansion drive as it was indirectly vital for economic growth.

Lord Krishna Bank chairman J Kashiviswanathan said, "The bank has a mission of becoming a `national bank' by increasing its network to 200 branches and post a 500 per cent growth in business at Rs 8,000 crore by year 2004". The south-based bank plans to launch credit and debit card shortly, start depositories services, and distribute insurance products in the coming months.

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