CASA deposits piling up in eastern states, banks should give greater credit expansion facilities: FM
Mumbai : Union Finance Minister Nirmala Sitharaman on Wednesday said that CASA deposits were piling up in the eastern states and asked the banks to give facility of greater credit expansion in the region.
Addressing a press conference, she said, ‘CASA deposits are piling up in eastern states. Banks should give the facility of greater credit expansion in that region. So the credit flow to business units in that region can be better promoted.’
‘There is a concern and which the banks have also recognised, be it in Odisha, Bihar, Jharkhand and some parts of West Bengal, CASA deposits are actually piling up. Banks should now as much as possible give facilities in that region for greater expansion. It’s one thing to receive deposits, smaller or medium size, from that region, from the people living in that region but to have a plan which is so desperately needed so that credit flow for business development for those regions can also be better promoted. CASA is there in western and southern states of the country, credit requirement is also there, so you are able to utilise that, earn better and also give in better terms for the credit requirement but that is not happening in several states of the estern region,’ she said.
The Finance Minister also said that she had requested the banks to come up with specific plans for the North East states so that businesses and requirements of those states could be met.
She said there should be a plan for each of the eight states where their products could find a market and banks should ensure that that happens.
‘Logistics, export needs of North Eastern states need to be looked after individually. As the Prime Minister has suggested banks need to cater to demand of the organic fruit sector of the North East, market reach for north eastern products,’ she added.
