The export credits by different banks in Haryana is far below the export credit ratio of 12% advised by the Reserve Bank of India (RBI).

The information came to light during the third meeting of Export Promotion Committee, convened by Punjab National Bank, the lead bank in the state. Executive director of PNB, MK Garg admitted that “increase in export credit outstanding had not kept pace with the growth in overall credit to the banks, which has affected the export credit ratio of the banks”. He informed said that all the banks have been advised by the RBI to achieve export credit to net bank credit ratio of 12% on an average basis. He agreed that although export credit outstanding which are Rs 10695 crore as on March 1992, increased to Rs 86207 crore as on March 2006, increase in export credit outstanding had not kept pace with the growth in overall credit to the banks.

The export credit to net bank credit ratio, which was over 13% during 1994-95 and 1995-96 had declined over the years and is around 6?7% in March 2006. “Decline in export credit ratio over the last few years in an area of concern for banks as exports of the country have grown substantially during this period. He urged upon the bankers to initiate urgent steps for increasing export credit disbursement and outstanding in order to achieve the target of 12% prescribed by RBI.

The exports from Haryana had shown 20% increase from year 2005-06 to year 2006-07. The exports which were of Rs 25000 crore in the year 2005-06, would be of Rs 30,000 crores as per the provisional figure for the year 2006-07. The export turnover routed through bank branches located in Haryana and Chandigarh had also increased from Rs 6962.25 crore in the year 2005-06 to Rs 8262.71 crore during the year 2006-07, witnessing a growth of 19% during the year. This excludes export from Haryana routed by exporters through banks located at Delhi, Mumbai, Bangalore etc. Hissar remained the major performing district followed by Panipat, Karnal, Gurgaon, Sonepat and Faridabad. Major item of export was steel products followed by rice, handloom goods, textiles and medicines.

The state enjoys third place in the country in Software exports, which were for Rs. 12000 crore. J.M. Garg, Executive Director Punjab National Bank presided over the meeting. B.P. Chopra, General Manager, PNB, Haryana Zone, Chandigarh and D.R. Dhingra, Special Secretary and Director Industries, Haryana were among those who attended the meeting.