Bhubaneswar, May 26 UNI | 2 months ago

The bankers today expressed their concern over the alarming level of Non Performing Assets (NPA) in Odisha.

The bankers at the State Level Banking Committee(SLBC) meeting here put the NPA in the state at 7.69 per cent, much higher than the national average. The average NPA of the Public Sector banks stood at 8.34 per cent. The private sector banks have the lowest NPA of 1.63 per cent, the cooperative banks 8.94 per cent and the Regional Rural Banks have the highest NPA of 10.21 per cent. They said the involvement of the state government machinery was necessary for improved recovery performance. The meeting was told that the deposits of the banks in the state have increased from Rs 146465.15 crore from March 2013 to Rs 169642.16 crore as on March 2014 registering a growth of 15.82 per cent. The incremental growth in total credit advance by March, 2014 has been 13.65 per cent. While Rs 127342.03 crore credit advance was given in March 2013 it went up to Rs 144726.71 crore in March 2014. Though the percentage of priority sector loans has been around 55.72 per cent in 2014 against against national average of 40 per cent, still there were a large pendency in priority sector loan applications. The share of priority sector advances have slightly decreased from 59.55 per cent as of March 2013 to 55.72 per cent as of March 2014. However, the incremental growth is 12.02 per cent.

The agricultural loans advanced by banks in the State have increased from Rs 24364 crore as of March, 2013 to Rs 27366 crore as of March, 2014 registering a growth of 12.32 per cent. The share of agricultural credit in total advance is around 29 per cent against the national average of 18 per cent. Similarly, the loans to MSME sector have increased from Rs.17209 crore by 2013 March to Rs 20425 crore by March, 2014 registering an incremental growth of 18.69 per cent.

SLBC Chairman S Chandra Sekhar urged upon all the banks to strive hard for achieving government targets for 2014-15 in each sector from the beginning of the current financial year. Sources said till the end of March, 2014 a total number of 4281 branches of various banks are operating in different parts of Odisha out of which 2335 are in rural area, 1143 in semi urban area and 803 in urban area. In the 2013-14 financial year, the growth rate in opening of branches has been 11.95 per cent over the last year.

(Posted on 27-05-2014)