Page 38 - BANKING FINANCE FEBRUARY 2016 ONLINE

P. 38

ARTICLE

people are turning into NPA and the repayments are not
coming in time even if they are ready to pay higher
interest. First of all we have to analyze the cause for it.

The major cause of the account turning into NPA is lack of Financial Inclusion is now need of the hour for the
our concern and connectivity with the customers and the development of the economy. The priority sector lending
borrowers are not properly being advised, guided and is no more a compliance but a very good business
educated regarding the timely repayment of loan and also proposition and an opportunity for the Banks to tap the
they don't believe that after repayment of the loan business.
whether they will get continuous support from bank. We
are following the 'Know Your Customer' guidelines issued The banks have a big role to play to develop the economy
by our regulators only as compliance but actually not by providing timely and adequate credit to the people and
knowing the customers fully. by exploring the untapped potential already existing in
our country. By providing timely and adequate credit to
If we don't know the customers, we are not in a position the people of country through formal banking system, a
to serve them and offer the products which are suitable trust of relationship will develop and it will lead to achieve
and in time as they require. The bankers are not the Financial Independence for all. If all the 80 crores
developing deeper bonding and relationship with the people living in rural India can be provided with skills to
customers due to several reasons and limitations. be fully productive,it will unleash yet another force to
create the emerging rural middle class that can transform
The banks will have to inculcate the confidence among India into a fastest growing economy in the world.
the customers that whenever they need money for
any requirement, they will get the hassle free credit from It will not only create employment and income but will
the banks. There is no question of account turning add to the GDP of our country and also help in reaching
into NPA if we know the customers and select the ahead with our competitors. The impact will be
borrower as well as project after conducting the proper transformational not only for India but for the global
due diligence. economy. There is greater responsibility on all the banker
and officer to develop our society and contribute in
As per the statistics published by Banks, RBI, etc it is found building a stronger economy. New and innovative efforts
that the NPA under priority sector is much less than Non- will go a long way in helping the individual resulting into
priority sectors. It shows that lending to the priority sector the rise of a developed country.
banks will be have lesser NPA which is the top most
concern and challenge for the Banking Industry.

Conclusion

No growth or development is complete if it is not
wholesome.Here wholesome includes every section of
society more particularly poor, backward and needy
sections of the society. It is well established fact that the

Mahila Bank's business plan for 5 years

Bharatiya Mahila Bank will soon firm up a medium-term business plan spanning next five
years, S. M. Swathi, Executive Director, BMB said. "Our board is expected to meet in the
next fortnight and consider for approval a medium-term business plan for the bank," she
said. The women focused bank, which started its journey in 2013, is looking to increase its
branch network to 120 branches by end-March next year. Till date, the bank has notched
up a business of about Rs. 1,280 crore.

38 | 2016 | FEBRUARY | BANKING FINANCE

33 34 35 36 37 38 39 40 41 42 43