Bankers should develop new banking culture: Reddy

Agartala, Nov 16 | Updated: Nov 17 2005, 05:30am hrs
Reserve Bank of India (RBI) governor YV Reddy on Wednesday advised the bankers to develop a new banking culture for allocation of more credits to the commercially viable projects. There should be a connectivity between the banks and citizens and the bankers have to develop a new banking culture for allocations of more credits to the commercially viable projects, Mr Reddy said in an interactive session.

Officers of commercial banks, state government officials, representatives of chambers of commerce and chartered accountants took part in the session. When a banker pointed out that there were 18,000 self-help groups in Tripura but the returns from their side for realisation of bank loans were not satisfactory, Mr Reddy said bankers would have to come forward for creating an atmosphere so that the groups can serve as viable and effective institutions of micro-credit.

The governor, on his first visit to the state, said the country is stable in the financial sector where the GDP is satisfactory and inflation has come down below 5%. The global inflation rate is about 3%, he said.

Tripura finance minister Badal Chowdhury who was present in the session said that, regarding improvement of credit deposit (CD) ratio, a meeting of chief ministers of all north-eastern states was organised in Shillong by the Union finance minister in 2001.

In the meeting an action plan was drawn up for uplifting the CD ratio at par with the national level within a period of three years, Mr Chowdhury said. However there was no significant improvement in this regard afterwards, he lamented. In Tripura the CD ratio is 28 when the national average is 58, he said in this context.

PTI