Poor loan recovery hampering flow of funds : SBI officials

ITANAGAR, August 3: Poor recovery of repayments is the main impediment in the smooth flow of loanable funds in this strategic frontier state of Arunachal Pradesh, according to the state Bank of India officials here. Talking to newsmen here on Wednesday, assistant general manager SBI regional branch, Itanagar, SC Sarkar said one of the problems being faced by the bank in Arunachal Pradesh is the poor recovery climate, which has hampered the flow of loanable funds. However, he said this could be done away with if the state government could initiate step to help the recovery efforts of banks by activating the Bakijai route by appointing Bakijai officers in the district. Stating that all 46 branches of the SBI operating in the state could not make much profits since its inceptions, Sarkar it was owing to high overhead costs of the branches, particularly in the currency chest branches, in which the full cost of police guards is borne by the bank instead of being shared by the state government. Despite several problems, SBI has been implementing various government-sponsored schemes like PMRY and IRDP (now merged with SGJY), margin money scheme of KVIC and KVIB and others, he said and added that kisan credit cards too were introduced by the SBI in the state in order to meet credit requirements of the good agricultural borrowers of the bank. He said the bank has also played a pioneering role in financing tea gardens to the tune of Rs 3.67 crore in this Himalayan state. Sarkar said total deposits of SBI in the state rose from Rs 370.34 crore on 31.3.99 to Rs 439.69 crore on 31.3.2000. Similarly, the total advances too have been increased from Rs 39.84 crore in March, 1999, to Rs 47.33 crore in March, 2000, he said, adding that the bank has also made an investment of Rs 18.88 crore in the state and subsequently credit and investment ratio too has been improved to 15 per cent as on 31.3.2000 as compared to about 10 per cent on 31.3.98.