Excelsior Correspondent
JAMMU, Feb 25: A meeting to review the performance of Regional Rural Banks (RRBs) on Key Performance Indicators and other thrust areas, including HR related issues was convened by NABARD Head Office Mumbai today.
The meeting was inaugurated by Rajiv Takru, Secretary, DFS, Ministry of Finance, and Government of India. Dr Harsh Kumar Bhanwala, Chairman, NABARD, presided over the meeting. All the 57 Chairmen of RRBs and senior executives of Reserve Bank of India and sponsor banks participated in the meeting.
Addressing the gathering, Dr Bhanwala, Chairman, NABARD said that NABARD has recommended several measures such as need-based recapitalization, consolidation of RRBs and migration to the Core Banking Solutions (CBS) to strengthen RRBs.”
He said the loans issued by RRBs crossed Rs one lakh crore mark for the first time during 2012-13, aggregating to Rs 102,382.24 crore as against Rs 82,538.29 crore in the previous year. The priority sector lending for the last three years has been more than 80 percent as against the targeted level of 60 percent. The RRBs have shown improved performance in profitability, with 63 of 64 RRBs earning a profit of Rs 2,275 crore during 2012-13. He appreciated that the CASA deposits are very significant (at 57% of their deposits), he cautioned RRBs to be vigilant with regard to NPAs.
Speaking on the occasion, Takru Secretary, MofF, GoI urged RRBs to increase revenue and reduce NPAs, professionalize their services and impart carefully designed and structured training programmes to their staff so that they are familiar, well-versed and can deliver to their best. “RRBs can take whatever help is required from RBI, NABARD, and also from the Government in cases where its intervention is required for playing a socially relevant role in their area of operation,” he said.
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