Dimapur, June 21 (MExN): Nagaland’s Credit Deposit Ratio (CDR) is 16 %, which is “dismally low” against the national average of 77 %. The Entrepreneurs Associate (EA) Kohima, who were invited to Shillong during the Parliamentary Standing Committee on Finance, Government of India visit to northeast region on June 20, discussed the CDR status of Nagaland. The committee is chaired by former Finance Minister Yashwant Sinha. EA members during the discussion highlighted the ground reality of credit flow of the State from banks and other financial institutions.
A press statement issued by EA stated that throughout the meeting, the need for pro-active role of the banks in providing credit to “First generation Entrepreneurs, Self-Employed and Industries” were given paramount importance.
“EA’s ample happy experiences prove that Young Entrepreneurs in Nagaland are highly credit worthy, disciplined and dynamic upcoming business generation. Bank in Nagaland must see this opportunity from a different modern lens. This view was endorsed by the Chairman and other eight visiting Members of Parliament,” the note added.
EA also presented a report based on the State level banker’s Committee report, 31-12-2011, Nagaland for ending 3rd quarter. According to the report there are 18 scheduled commercial banks in Nagaland and State Bank of India (SBI) is the lead bank in the State, which has a deposit of Rs 5115 crore and credit of Rs 1510 crore. However, if SBI which has government deposits and credits, is excluded then the other 17 scheduled commercial banks’ total deposit stands at Rs 2417 crore and credit of Rs 395 crore.
It also stated that the credit inflow to SHG is pathetically low with only Rs 1.67 crore. If SBI is excluded, the remaining banks’ credit inflow is only Rs 12.5 crores for the entire State.
Also, it highlighted that opening of new bank branches in “unbanked areas” should be intensified, stating that “with over 5000 population in satellite townships and administrative circles must accorded top priority.”
The EA stated that the meeting concluded on a note that banks must become catalyst to bring about economic development unleashing youth entrepreneurship in the state and NE region at large. “This reality will be made possible if only banks in Nagaland make the state as Investment and Credit Hub rather than existing practice of treating it as only a Deposit hub. This will bring about national; economic integration and equitable regional growth for the country the committee opined,” the note from the EA added.
