Thiruvananthapuram:
Kerala
Chief Minister A K Antony has called upon banks operating
in the state to raise the credit-deposit (CD) ratio to
60 per cent.
Addressing the
state-level Banking Consultative Committee meeting here,
he said this is necessary in view of the forthcoming global
investors meet and the increasing investment possibilities
in the states information technology and tourism sectors.
He said the CD ratio in the state has not registered any
significant increase in the past several years. "But the
slight rise in the ratio this year to 45 per cent from the last
years 43 per cent is a good beginning."
According to the chief
minister the state is turning more and more investor-friendly.
"The banks have a major role to play in the emerging
scenario. The various projects to be implemented by the local
bodies over the next five years will be finalised in three months.
The banks have extended the period for one-time settlement of dues
from the agricultural sector till 31 December this year."
But the banks will be
free to decide on the extent of relief to be allowed in penal
interest on a case-to-case basis, he said. "The state
government will request the centre to permit the banks to offer
relief in times of natural calamities and collapse of agricultural
prices. We will also approach the banks boards to help create a
corpus fund for preparing projects."
The
meeting decided to ensure the participation of bank
representatives at least twice in the deliberations of the working
groups of the local bodies that draw up the projects. The banks
will also extend finance to the viable projects of the local
bodies without insisting on government guarantee.
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