Ranchi: State Finance Minister Radha Krishna Kishore on Saturday raised strong objections to the Union Bank of India’s (UBI) decision to shift its zonal office from Jharkhand to Bihar. Calling the move “against the sentiments of the people of Jharkhand,” he urged UBI to reconsider its decision.
Key Highlights
Addressing the quarterly meeting of the State-Level Bankers’ Committee (SLBC) in Ranchi, the minister emphasized the importance of retaining key financial institutions in Jharkhand.
“The decision to shift the zonal office undermines the aspirations of the people who fought for a separate state to establish new institutions and industries here. The state government will formally oppose this move using all democratic processes,” he said.
Kishore highlighted that UBI operates 120 branches in Jharkhand with deposits totaling ₹13,555 crore, compared to 236 branches in Bihar with deposits of around ₹15,743 crore.
Concerns About Banking Practices
- Low Loan Sanctions for Women: The minister expressed concern over the limited number of loans approved for women under the Kisan Credit Card scheme and called for more inclusive lending practices.
- Credit-Deposit (CD) Ratio Gap: While praising the rise in Jharkhand’s CD ratio from 45.04% in September 2023 to 50.22% in September 2024, Kishore noted the state still lags behind the national average of 87% by 37%. He urged banks to boost lending in education, small businesses, and agriculture to close the gap.
Addressing Non-Performing Assets and Loan Recovery
On non-performing assets (NPAs), Kishore urged banks to carefully evaluate applicants before sanctioning loans. He also suggested that if an individual defaults, their immediate family members should not be eligible for loans.
Regarding recovery agents using forceful techniques, particularly in private banks, Kishore strongly condemned such practices. He instructed bankers to share the Reserve Bank of India (RBI) guidelines on loan recovery with district administration officials.
“If inhuman methods are used, district officials must register FIRs against the concerned agents,” he asserted.
Praise for Progress and a Call for Greater Efforts
Despite these challenges, the minister acknowledged the banking sector’s progress in improving the CD ratio and its role in supporting the state’s economy. However, he stressed that Union and state government schemes alone are not enough to drive growth.
“Banks should focus on lending to genuinely needy individuals and work towards fostering the economic development of Jharkhand,” he concluded.
The SLBC meeting served as a platform to discuss the state’s financial challenges and set expectations for banks to contribute more effectively to Jharkhand’s growth.
