Productive sectors have not been starved of credit: Chidamnbaram news
12 February 2008

After meeting bankers today, finance minister P Chidambaram met bankers today, he said at a press conference that all targets for the fiscal year are likely to be met.

"Productive sectors have not been starved of credit. They are getting adequate credit at the right price. There is some slowing down as I said for home loans and consumer durables. We have asked them to look at those sectors to ensure that adequate credit is delivered to those sectors also."

He said banks have been advised to pay attention to the requirement of credit for homeowners and requirement of credit for those who would like to buy consumer durables and consumer non-durables.

"The reason is that consumption drives production and production drives investment. Therefore, one must ensure that there is adequate growth in consumption as well. I think they have taken these suggestions on board and some banks have already begun to move in that direction over the last few days. So, hopefully over the next few days banks will pay attention to credit delivery as well as credit quality," he added.

"Otherwise, growth of advances, deposits, net interest margin, return on assets, and net profitability are very satisfactory. Virtually all banks are confident that they will reach their SOI targets. So, these areas, which require attention, I am sure they will pay attention to in the next few days," he said.

He also said that other banks have been advised to complete exercise and send the final report on how many sugar mills have been given the facilities contemplated in the sugar package. "The report will come latest by February 22 and in the next 10 days, the package will be implemented for all sugar mills, which apply under the package," he confirmed.


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Productive sectors have not been starved of credit: Chidamnbaram