Banks asked to support infrastructure growth in rural areas.

The State Government has expressed displeasure over the banks for not coming out of with specific infrastructure development plan to support credit growth. "The banks need to submit their proposals for required infrastructure growth in rural areas either to the District Collectors and the secretaries of various departments," Chief Secretary Ajit Kumar Tripathy said in a recently concluded State Level Bankers' Committee (SLBC) meeting.The SLBC meeting should be convened in the first week of March when the figures for the December quarter is also available, he said, adding that it would help in suggesting some policy intervention if required before the end of the fiscal.
Regarding he setting up of the Entrepreneurship Development Training Institute by the banks, Tripathy said no significant progress has been made on this front. Expressing his concern for the banks' failure to take up skill up gradation for artisans and weavers in handloom and the handicraft sectors, he said if any banks come up with a plan in this connection, it would be cleared within a month.However, the SLBC in its meeting decided to complete the financial inclusion of all districts of the State by 2009. It also decided to form a small sub-committee having representatives upto three banks to work out the modalities for the formation of MSME Orissa Development Consortium.

Under the financial inclusion plan, the Ganjam district has archive 100 per cent fanatical inclusion. It is on the verge of completion in five more districts namely Cuttack, Puri, Ganjam, Rayagada, Nayagarh and Keonjhar. By October 2008, another 14 districts would be completed.Chairman of SLBC Brij Mohan Mittal called upon all the banks doing business in Orissa to pursue this objective vigorously. "The objective of financial inclusion can be realised only when the people inculcate the saving habits among them," he said.He further said that as Orissa is on the threshold of industrialisation, banks should play an important role in the development of the State. "There is vast scope for lending to small and medium enterprises, agriculture, agro based, information and technology and self help groups," he said, adding that there is need to expand areas under the cultivation.

Emphasising on the need for covering all the crops under the National Agricultural Insurance Scheme, he said, it would help to mitigate the risks associated with cultivation of different crops. The framer's clubs, which have become defunct in the State, also need to be revived by the National Bank for Agriculture.Finance Secretary RN Senapati expressed his concern about the falling credit-deposit ratio in the State. The CD ratio, which was about 81 per cent by the end of December 2006, declined to 76.95 per cent in December 2007.