Bihar government has decided not to keep its cash with these 13 banks, who failed to obtain a minimum of 25 marks out of 100 on the basis of performance on priority sector, agriculture credit, KCC and credit-deposit ratio
Patna: Penalising for non-performance in loan disbursal in priority and agriculture sectors, Bihar government has cracked whips against 13 public and private sectors banks and decided against depositing its cash with these banks, Deputy Chief Minister Sushil Kumar Modi said, reports PTI.
"Disbursement of loans in priority and agriculture sectors and Kisan Credit Cards (KCC) has been found to be poor by 13 banks as they failed to obtain a minimum of 25 marks out of 100 on the basis of performance on four parameters - priority sector, agriculture credit, KCC and credit-deposit ratio", Modi said.
It was decided that the state government would not keep its cash with these 13 non-performing banking institutions till further orders, the said.
The black listed banks are Punjab National Bank, ICICI Bank, Andhra Bank, Bank of Maharashtra, Punjab and Sindh Bank, Vijaya Bank, Federal Bank, Jammu and Kashmir Bank, South Indian Bank, ING Vaishya Bank, Kotak Mahindra Bank, Bombay Mercantile Cooperative Bank and Tapeshwar Urban Cooperative Bank.
Modi, who holds the finance portfolio said the largest public sector bank SBI had been asked to improve disbursal of credit in the designated sectors as it had just made the cut by obtaining 28 marks out of 100 following review of its performance.
The deputy chief minister, however, lauded five banks - Bank of India, Allahabad Bank, HDFC Bank, UCO Bank and Canara Bank - for its overall performance in disbursal of loans in designated sectors, but said these banks must further improve their lending rate in all four sectors being assessed by the state government on half-yearly basis.
The next review of the banks' performance about loan disbursal will be done in April 2013, he said.
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