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Credit
is an important input for economic growth. Banks as a part
of financial system play crucial role in mobilizing resources
and in their allocation to different sectors of the economy
and projects in conformity with priorities underlying the
development of overall national planning process.
Until
independence, the rural population had little or no access
to institutional agencies for their credit needs. With the
dawn of freedom, the institutional credit system geared up
to play a greater role in transforming the conditions of rural
life. While sectoral budgetary allocations were, to an extent,
instrumental in giving shape to the policy concerns of the
Sate, institutional credit played pivotal role in successful
implementation of development strategies, programmes and plans
of governments. The joint commitment of governmental agencies
and financial institutions towards growth of economy and welfare
of the masses is most significantly reflected in priority
sector financing (PSF), towards which banks were expected
to commit at least 40% of their total advances. Although various
agencies involved in PSF have, by now, evolved mutually acceptable
strategies for discharging their respective responsibilities,
a number of underlying issues still need serious thought and
efforts. Recovery of bank overdues is one of these issues.
Though,
entire exercise in strengthening partnership between government
and banks call for greater cooperation, state efforts for
recovery of bank overdues assumes greater significance. Commercial
Banks assist State Government in meeting targets for institutional
financing of government sponsored programmes and schemes of
poverty alleviation and self employment. As disbursement of
loans to beneficiaries under government sponsored schemes
are target oriented, very often recoveries are not upto the
mark. Recoveries are lifeblood of financial system, as these
make recycling of funds possible. Therefore, Commercial Banks
have constantly been urging State Government to assist them
in recoveries, just like the banks assist State Government
in meeting targets.
Details
of amount received on the head of BRISC : -
Amt.in Rs
| |
Y
E A R |
| Opening
Balance |
2006-07 |
2007-08 |
2008-09 |
2009-10
|
Grant Total |
| Total
|
2124056.00 |
92576.00 |
89565.00 |
25230.00 |
316007.00 |
2647434.00 |
|
|
