Thiruvananthapuram:

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.