Banks should focus on rural areas: Kalam

TIRUCHIRAPALLI: Banks should focus on extending better services to the rural populace since it was only rural development that could lead to the country's progress, former President A P J Abdul Kalam said.

Banks must nurture rural development projects envisaged by the government besides giving prominence to agricultural lending, he said at the founders' day celebrations of Karur Vysya Bank (KVB).

He said banks like KVB must take up PURA (providing urban amenities in rural areas) scheme and thereby promote the traditional acumen available in villages.

Highlighting the importance of bio-fuel, he asked KVB to offer financial aid for production and marketing of the green fuel, right from the initial stage of quality seed procurement.

He also wanted KVB to support the Tamil Nadu government's plan on cultivation of jatropha in one lakh acres and installation of 200 processing centres across the state.

KVB Chairman P T Kuppuswamy said the bank, which had 277 branches, had registered an aggregate business of Rs 17,600 crore in 2006-07.

It was committed to enhancing the aggregate business to Rs 25,000 crore before March 31, 2009, he added.