Page 5 - BANKING FINANCE November 2015 ONLINE
P. 5
BANK UPDATE
BANKING
NEWS
NRIs' Rs.2,000 cr bank Private sector candidates not eligible for PSB's top
deposits is a boost for 3 posts: Adhia
small Guj villages
Financial Services Secretary Hasmukh want to improve the status of public
Eight full-fledged branches of nation- Adhia has made it sector banks and see them function on
alized banks clear that the next commercial terms, having real au-
cater to just round of appoint- tonomy".
1,292 house- ments of Manag-
holds in the ing Directors and The Government, he added, wants to
tiny hamlet CEOs in public sec- hold-hand, support and motivate them
tor banks will be so that they are on the right course
Baladia, some 15 km from Bhuj. The and do much better than what is ex-
NRI-rich village boasts of bank de- from within the entities. pected. There is a general perception
posits worth Rs. 2,000 crore. that banks are not transmitting down-
Baladia is one of over a dozen Indradhanush - the seven-point revamp ward revisions in the repo rate, while
wealthy Patel villages around Bhuj. plan for public sector banks - will have banks say that their cost of funds is
three to five years from now. He fur- high and that they face competition
Around 7,630 households banks de- ther reported that "When the inten- from small savings.
posits in Madhapar stand at tion is good, things do work out. We
Rs.5,000 crore. Kera village, home
to 1,863 families, too, has deposits Saddled public sector banks to get Rs.70.000 cr over
of Rs.2,000 crore. Almost half of this four years
is NRI money.
Public sector banks (PSB), encumbered capital infusion of Rs. 12,010 crore
"Some villages in Kutch like with bad debt, will get Rs.70,000 crore through a Supplementary Demand for
Madhapar and Baladia have very over a period of four years, the Finance Grants. The remaining Rs.5,000 crore
high NRI deposits. To the best of our Ministry said. The first installment of will be provided in the second Supple-
knowledge, this is the highest in the Rs.25,000 crore has been marked for mentary Demand later this year.
country," said K. C. Chippa, former this fiscal.
convenor of State Level Banker's The second installment of Rs.25,000
Committee (SLBC), Gujarat. Be- It is "a good beginning", according to crore will be in 2016-17, followed by in-
tween them, Madhapar, Baladia RBI Governor Raghuram Rajan, that fusion of Rs.10,000 crore each in the
and Kera have 30 bank branches the allocation for recapitalization in third (2017-18), and fourth (2018-19)
and 24 ATMs. the first year is adequate. Having pro- installments. The capital infusion will
vided Rs.7,940 crore in this year's Bud- take place as early as possible, after
get, the Finance Ministry has sought the necessary approval from the Par-
Parliamentary nod for an additional liament.
BANKING FINANCE | NOVEMBER | 2015 | 5
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