Kerala becomes first ‘total banking State'

Kerala was declared the first State in the country to achieve total financial inclusion. The achievement means that each household in the State has at least one bank account and the facility for need-based credit. At a meeting of bankers here on Friday, Chief Minister Oommen Chandy distributed certificates to the banks that had participated in a drive to take banking services to every corner of the State. Mr. Chandy said banks had a lot more to do for the State and its people. Lending to the agriculture sector should go up from the present 22 per cent of the total lending to priority sector (Reserve Bank of India's norm is 18 per cent).  The lending classified as lending to agriculture included the loans to the plantation sector that absorbed large credit. The other areas of farm sector could do with more credit support than at present. The Chief Minister drew the banks' attention to the need for extending credit support to the Clean Kerala Mission, a programme to make the State live up to its nickname of ‘God's Own Country.' Growth in sectors such as tourism and healthcare could be further accelerated with the help of banks. Banks could also think of schemes to encourage institutions of excellence in education.  He said there was no reason why Kerala could not achieve a double-digit growth rate. S. Raman, Chairman and Managing Director of Canara Bank, in his capacity as the convener of the State Level Bankers' Committee (SLBC), said at the meeting that Palakkad district had become the first district in the country to achieve total financial inclusion four years ago. Among others, Minister for Rural Development K.C. Joseph; Regional Director of RBI Suma Varma; Chief Secretary P. Prabhakaran; Executive Director of Canara Bank Archna S. Bhargava also addressed the function.

HBL