PATNA: Buoyed up by the functioning of the new dispensation, leading bankers and corporate executives are making a beeline to the state these days. The chief executive of Indian Bank met deputy CM Sushil Kumar Modi on Tuesday and expressed willingness to expand the bank's base in the state. On Wednesday, the CEO of HSBC, Naina Lal Kidwai, the executive director of Central Bank, K Subbaraman, the chairman of the Union Bank of India and the president (inspection and audit) of the UTI Bank, Ranjan K Niyogi, were in Patna.
On Thursday, Ajai Chowdhary, the chairman of HCL, the oldest computer manufacturing company in the country, is expected to make a visit to the state capital.
The UTI Bank has already opened its second branch at Boring Road here. "We have four branches in Bihar. We will open a branch at Gaya soon. Eventually, we hope to open branches in all the districts of Bihar," Niyogi said and added that the bank plans to expand its base in the state.The officials of the UTI bank are quite happy about the bank's roaring business in Bhagalpur. "Open a branch, and it will trigger a stream of business," remarked a bank official. The changed political scenario seems to be wooing financial institutions to start operations in Bihar.
The recent dacoity of Rs 50 lakh in Patna outside a bank does not seem to have deterred the bankers the least... "At least, the police have recovered a part of the looted amount. A year back, it was simply unimaginable that the police would be able to retrieve the looted money," said another banker.
"In fact, the political leadership has reposed bankers' faith in the system. And that's why they are here," regional GM of Hudco Arun Kumar said. There has been a considerable rise in private parties seeking financial support from Hudco, he said, adding: "Our minimum budget for Bihar is Rs 200 crore. And we can go up to Rs 1,000 crore," he said.
There is an air of expectancy even in the insurance sector. "We expect an increase in business in the transport sector because of the lowering of road taxes by the new regime," said the chief regional manager of Oriental Insurance Company Limited. "We hope a few industries, particularly sugar mills, will come up in the state," he added. Incidentally, the state government has been critical of public banks for their reluctance to finance poverty eradication programmes and the agriculture sector. Though Patna has witnessed a virtual flooding of branches of private and international banks in the recent times, the government has been constantly pointing towards the large bank deposits made in Bihar every year — a whopping Rs 5,000 crore — with credit percentage being much lower. The performance of private banks in giving credit is virtually negligible. "Forty per cent of our deposits are used for credit purposes. A major chunk of the amount goes to the agriculture sector. "We will continue to focus on the agriculture sector and the small and medium scale industries in Bihar," senior vice-president of UTI Bank S K Mitra said.
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