Govt asks banks to step up lending to minorities

NEW DELHI: The government has asked all state-owned banks to enhance lending to persons from minority communities and open at least one branch in each of the 25 minority-concentrated blocks. ���We have instructed all public sector banks that they should open at least one branch in each of the 25 minority-concentrated blocks in the country,��� finance minister Pranab Mukherjee told Rajya Sabha.

Speaking at the question hour, he said banks have also been asked to step up disbursement to minority communities to 15% of their priority sector lending in 2009-10.

The lead bank in each of the minority-concentrated districts should have an officer to exclusively look after problems regarding credit flow to minority communities, he said. The minister told the House that banks have been asked to organise awareness campaigns in such blocks, districts and towns and monitor disposal of loan applications from minority communities.

He hoped that the target set by public sector banks for lending would improve during the current fiscal. Mr Mukherjee added Indian exports have slowed down since October 2008 because of economic downturn and financial crisis in principal markets in the North America and the European Union.

The EU accounts for 36% of the total exports by India, US 16-17% and Japan 15-16%. These three main markets together account for 68% of the country���s exports and any slowdown in these economies will impact Indian exports, he said. Commerce minister Anand Sharma may announce measures to deal with slowdown in exports when he presents the Export-Import Policy for 2009-10 before the end of the current session of Parliament.

Mr Mukherjee said he has had discussions with Mr Sharma on the contours of the Foreign Trade Policy (EXIM Policy) and some more discussion would follow. ���I am confident that by the end of the current session, the commerce minister will be able to place the EXIM Policy.��� Indian exporters should look at newer markets beyond North America, European Union and Japan to tackle slowdown, he said.