BANGALORE: Karnataka chief minister Siddaramaiah has asked public sector banks that are headquartered in the state to increase credit flow in order to stimulate growth and expand financial inclusion.
Addressing the State Level Bankers’ Committee meet, on Sunday, the CM noted that despite Karnataka being the headquarters of five state-run banks, credit flow hasn’t increased when compared to the other southern states.
“Though Karnataka has 8,430 bank branches, including 3,295 in rural areas, the credit flow has not increased much as evident from the credit-deposit (CD) ratio at 75% in the state, as against 117% in Tamil Nadu and 120 % in Andhra Pradesh,” said the CM.
He added that in rural areas too the CD ratio across the state was only at 100% well behind Tamil Nadu’s CD ratio of 132% and a whopping 173% in Andhra Pradesh. He asked the bankers to provide for higher credit to priority sectors for the socio-economic development of the rural areas in the state.
“We need to change this trend to ensure higher credit flow to economy in general and to rural economy in particular,” said chief minister.
Further, he said it was a matter of concern that banks have not achieved the lending targets set for social sector development corporations like Ambedkar Development Corporation, ST Development Corporation, Minority Development Corporation and Devaraj Urs Development Corporation across the state.