Gujarat chief minister Mr. Narendra Modi while attending the Gujarat State Level Bankers Committee’s (SLBC) meet has called upon the nationalized banks to adopt planned-model of an ‘inclusive development’ in the banking sector. Addressing the SLBC meet, Mr. Modi said it is the time that banks become proactive and take new initiatives widening their dimensions of their banking business and services and opt for a roadmap of inclusive growth.
Mr. Modi was speaking at 138th SLBC meet which was held on Thursday at Mahatma Mandir in Gandhinagar. Gujarat chief minister appealed the nationalized banks to contribute in the economic development of country and help in making the banking services easily available to the commoners, poor, farmers, youth, women and neo-middle class people.
Gujarat-based nationalized banks could become a guiding light for the entire nation if adopts the inclusive development on a mission mode basis, said Mr. Modi, while adding that the state government has created an environment of all-round inclusive development which offers these banks immense potential to contribute to their best of capabilities. Mr. Modi added that with their increasing coverage and scope of services, banks can bring a qualitative change.
Chief Minister said that the Credit-Deposit Ratio (CDR) of Nationalized Banks in Gujarat is lesser than other states. Mr. Modi said that the reasons for this given by the banks are not acceptable and Gujarat having only 75% CDR as against 100% of remaining states leads to doubts. Mr. Modi further said that if they accept the arguments offered by the banks that it is not considering the companies and industrial houses registered in Mumbai. Then, it raises serious questions over bank’s services. Are these banks serving few companies of Mumbai for the remaining Credit-Deposit Ratio of 25%?
In this regard Chief Minister appealed the bankers to change the terminology and their definition of the credit-deposit ratio of the banks in Gujarat. And he further said that banks must come forward to serve as speedy as they serve the corporate sector and industries when it comes to the common men and the targeted beneficiaries.
Chief Minister requested the bankers to adopt more human approach and by coming out of their traditional purviews of banking services and rules and regulations while they target to extend their services for the neo middle class, the poor and the needy commoners, youth, debt ridden farmers, workers and rural women groups-sakhimandals, etc.
Mr. Modi also called upon the banking sector to provide their contribution in the state government sponsored scheme of affordable houses.
He said a new section of the society in neo middle class has come into existence in the country and the onus is now on the banks to offer them maximum opportunities for their development and aspirations. The neo middle class has come from the erstwhile poor and now they seek to fulfill their dreams of development in multi-directions. It is bank’s social responsibility to lead from the front in helping this neo class people who aspire to have their own house, good education of their wards, health and safety of their elder family members, said Mr. Modi.
Mr. Narendra Modi said that in the youngest country like India; at one side crore of youth are in need of employment and at the other hand right from Obama to Dr. Kalam are stressing on the need of human skill development. The banks must provide easy educational loans to these youths who are seeking financial aids for their higher education.
Requesting the banks to shun their traditional mentality while extending timely help to the farmers and agriculture lending, Chief Minister said the farmers burdened by heavy debts committing suicide has become grave concern in the country. The banks have failed to formulate concrete steps on a mission-mode to free those unfortunate debt ridden farmers, who end their lives, from the vicious circle of interest and the money-lenders.
Mr. Modi stressed that the bank should immediately come up with a plan to extend loans to agro infrastructure ventures. He advocated for putting the infrastructures like warehouses for the storage of farm produce, godowns and the cold storage chains in the priority sector of the banks while extending loans. “This would eventually strengthen the Indian economy”, he said.
Considering the huge possibilities of value-added agro products and exports in modern-day farming he suggested that banking sector should give priority to processing industries and organic farming.
He emphasized on the need of including tourism infrastructure in priority banking services. “Banks can help in setting up of tourism infrastructure facilities and contribute in the development of the nation’s tourism sector with a view to fulfill their social responsibility”, he added.
Speaking about the technology network for the qualitative changes in banking services Mr. Modi said that 18,000 villages of Gujarat are equipped with broadband connectivity. Out of the total online financial transaction under the central government scheme, Gujarat contributes the highest 30% share. Banks should take maximum advantage of it.
Chief Minister suggested that a vision-2047 should be prepared with a view to put India on the top by the time it celebrates 100 years of its getting independence. He called upon banks to ensure their contribution in strengthening India.
Finance Minister Nitin Patel stressed that banks should play a supporting role to the rapid growth of various sectors during the Chief Minister Narendra Modi’s regime. He also suggested that banks should have healthy competition with each other coupled with a humane approach.
SLBC chairman and managing director of Gujarat’s leading Dena bank Mr. Ashwinikumar said that national banks are committed to play their role of bringing forward the state’s progress.
Regional Director of Reserve Bank Mr. Sudarsan Sen, Chief General Manager of NABARD Mr. M K Muddagal, Joint secretary to Finance Department, Government of India Mrs. Shreya Gun, office bearers of banks from all over Gujarat, District development officers and leaders of banking sector were present on the occasion.