CM shoots letters to finance min on tardy expansion of banks in UP
Uttar Pradesh has been deprived of 437 new bank branches due to major nationalised banks that are making slow progress in setting up new branches in Uttar Pradesh. About nine months after March 31, 2014 deadline, major banks have opened only 2563 out of 3000 new branches to be opened in the state.lucknow Updated: Jan 03, 2015 16:20 IST
Uttar Pradesh has been deprived of 437 new bank branches due to major nationalised banks that are making slow progress in setting up new branches in Uttar Pradesh.
About nine months after March 31, 2014 deadline, major banks have opened only 2563 out of 3000 new branches to be opened in the state.
Punjab National Bank, Allahabad Bank, Central Bank of India, Oriental Bank of Commerce and Vijaya Bank are among the major banks that have failed to achieve the targets of opening their new branches.
As the major banks are making a slow progress in setting up the bank branches – chief minister Akhilesh Yadav has sought union finance minister Arun Jaitley’s intervention on the issue. In his letter dated December 30, 2014 sent to Jaitley, the chief minister has named the banks that have failed to achieve the targets set by the Reserve Bank of India (RBI).
Significantly this is among the six letters that chief minister sent to the union finance minister in a day at the end of 2014. In another letter, Akhilesh has requested the union finance minister to release 10% central share that the Centre had stopped due to the state government’s failure to carry out certain reforms while implementing 33 projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in UP.
“Major nationalised banks - Punjab National Bank, Allahabad Bank, Central Bank of India, Bank of India, Oriental Bank of Commerce and Vijaya Bank have made slow progress. The PNB has opened only 105 branches against the target of opening 255 new branches in UP. It’s clear that the PNB is not taking a note of the decision taken by the union government/RBI with regard to opening the new branches,” said chief minister while requesting Jaitley to issue directives to chairman and managing director of the banks to open the new branches on a priority basis in Uttar Pradesh.
A decision to open 3000 new bank branches was taken at a meeting of the State Level Bankers Committee (SLBC) held in the presence of the then Governor Reserve Bank of India here on here on January 15, 2013.
Banks had only opened 2563 branches (by November 30, 2014) despite all the cooperation being extended by the state government, he said.
The chief minister has also pointed out that the Credit Deposit Ratio was only 52% against the norms of 60% in the state. He said there was tremendous scope for loan in agriculture and industry sectors in the state.
The banks were, however, diverting the savings being made in Uttar Pradesh to other states, said Yadav.
Leading nationalised banks that have failed to meet the norms of CD ratio include Bank of Baroda, Bank of India, Central Bank of India, Punjab National Bank, State Bank of India, Syndicate Bank and Union Bank of India, he said while urging Jaitley to direct the managements of these banks to bring about an improvement in the situation. Chief minister has also urged Jaitley to get the NPA norms relaxed to enable the three rural sectors banks to achieve the targets of opening the new bank branches.
About the Centre’s move to stop its 10% share chief minister said 33 projects of the JNNURM were being implemented in seven cities that include Lucknow, Kanpur, Agra, Allahabad, Varanasi, Meerut and Mathura. A sum of Rs. 252.30 crore (10%) had been stopped earlier for 30 projects though the Central Sanctions and Monitoring Committee (CSMC), however, at its meeting held on January 3, 2012 it had accepted that UP had implemented the reforms, he said. The chief minister said the delay in release of the central share was leading to higher project costs. So, the centre should bear the additional burden as well, he said.
In another letter to Jaitley, the chief minister demanded that the Centre should release additional assistance of Rs. 5834.36 crore for the damage of crops due to drought, floods and hail storm.
The chief minister requested Jaitley to increase the outlay of Pradhan Mantri Gramin Sadak Yojana (PMGSY) to Rs. 2600 crore and release Rs. 1000 crore to the state government. in yet another letter chief minister demanded that the Centre should release Rs. 302.75 crore for payment of arrears in view of revised pay scales given to university and college teachers.