Chief Minister Jai Ram Thakur exhorted the bankers to target sectors such as agriculture, tourism, horticulture and services sector for increasing the credit-deposit ratio and ensuring all-round and robust development.

He was presiding over the state level banker’s conference held here on Tuesday.

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The CM said that the credit-deposit ratio in the state was 35.47 per cent, which was quite low as compared to national average of 75.64 per cent.

He said that the banking sector should create conducive atmosphere for people to go for institutional loans.

“Efforts would be made to bring co-operative banks in the state under the preview of Credit Guarantee Fund Trust for Micro and Small Entrepreneurs (CGTMSE) for availing credit guarantee coverage for collateral free loans,” he said.

Thakur said that the banks should also simplify cumbersome documentation and procedure requirements for availing banks loan. He said that a survey conducted in the state has found that a large proportion of households accessed non-institutional sources for loans.

He said that only about 46.51 per cent household opted for institutional loans, thus the bankers should come up with easy and simple procedure for financing.

The CM said that efforts should be made to encourage and credit link the farmer’s cooperatives like self help groups, farmers producer organisation etc.

He said that the bank should also come forward to promote small and micro industrial units by providing them need based loans and other logistic support. He said that strategy should be framed for improving credit expends and fix a target to improve credit deposit ratio within a stipulated time period.

Chief Minister said that high credit-deposit ratio means higher capital formation that creates employment, generate income and assets and this in return help in promoting growth and sustainable development.

He said that government was endeavouring to establish industrial clusters, industrial hubs and special economic zone in the state for benefit of the entrepreneurs. The bankers should come forward to provide banking facilities to them, he added.

Additional Chief Secretary Finance Anil Kumar Khachi said that the state has over 1.05 lakh crore deposits in the bank whereas it have only Rs 37,400 crore loans. He said the banker should also focus on housing sector for increasing credit-deposit ratio in the state.