THIRUVANANTHAPURAM: Chief Minister Oommen Chandy, lamenting the generally insensitive approach of the banking sector, exhorted them to take a more favourable approach towards genuine banking needs of the people.
“The banking industry, in the best interests of all, should try to aim for a unified policy with regard to sanctioning of educational loans,” the chief minister said at the State Level Bankers Committee review meeting here on Monday.
Finance minister K. M. Mani, too, came down hard on banks. “No student who deserves to go for higher education should be denied an opportunity for lack of funds. Banks should never falter on this count,” he said. The State Level Bankers Committee meeting, however, argued that these loans were contributing to an increase in the non-performing assets of the banks.
Mani said there was a huge demand to free students doing their professional education from their interest burden. “By reducing the interest rates, the banks too could reduce their non-performing assets,” he added.
The chief minister also called for a uniform approach by banks towards the schemes formulated by the government for non-resident Keralites.
“Today, banks have different terms and conditions. The entire banking industry should come forward and cooperate with the state government that has drawn a package for the non-resident Keralites who have returned,” said Chandy.
The finance minister said that banks should take special care to increase their loan component in proportion to the increase in their deposits.
He expressed concern at the falling credit-deposit ratio of banks. He said it was a good sign that the agricultural loans had increased.
