To make the banking services accessible to the Aam Aadmi, the Reserve Bank of India had set up a high-level committee on the Lead Bank Scheme. After careful assessment of the recommendations of this Committee and in further consultation with the RBI, it has been decided to provide appropriate banking facilities to habitations of 2,000 or more by March 2012. This decision was agreed on by the chairman and managing director, Punjab National Bank and chairman, State level bankers committee (SLBC), KR Kamath. He was speaking at the 111 th meeting of SLBC.
?By this arrangement, it is proposed to cover 60,000 habitations across the country. The programme for linking self help groups (SHGs) with the banking system has emerged as the major micro finance initiative in the country. Under this a Micro Finance Development and Equity Fund with Corpus Rs.200 crores was established in 2005-06, the corpus of this fund is being doubled to Rs.400 crores for 2010-11. All these measures would help in giving impetus to the inclusive growth,? Kamath said.
While reviewing the performance of banks under various key parameters in Punjab for the period from December 2008 to December 2009, Kamath informed that the banks in the state recorded a better growth as compared to the previous year in respect of priority sector advances, advances to agriculture, micro and small enterprises. Kamath announced that banking system in the state has achieved the national goals in respect of priority Sector, agriculture credit (direct as well as indirect) and lending to weaker sections for the period ending December 2009. Since January 2009, 214 new branches of commercial banks and regional rural branches (RRBs) have been opened, thus raising the total number of branches to 3,396.
Total deposits in the state have increased from Rs 11,2797 crore as on December 2008 to Rs 12,9090 crore as on December 2009 showing a growth of 14%. Total Advances during the period under review have increased from Rs 77,664 crore to Rs 88,427 crore also showing a growth of 14%. Overall CD Ratio of Banks in the State is 68% as on December 2009, which is satisfactory.
Priority Sector Advances have increased from Rs 38,776 core as on December 2008 to Rs 45,845 crore as on December 2009 showing a growth of 18%. Agriculture advances have increased from Rs 18,118 crore as on December 2008 to Rs 21,694 crore as on December 2009 recording a growth of 20%. Advances to Micro & Small Enterprises have increased from Rs 11,621 crore as on December 2008 to Rs 15,205 crore as on December 2009 showing a growth of 31%.
It is worth mentioning that as per the package announced by union finance minister during 2005, the MSE Advances were to be doubled in 5 years ending May 2010. It is a matter of satisfaction that Banks in Punjab have already doubled the SME Advances much ahead the target date.