Bihar Govt not to deposit funds in 21 banks

http://www.thehindubusinessline.com/industry-and-economy/banking/article3803402.ece

Bihar government has decided against depositing funds in 21 public and private sector banks for their failure to provide loans to borrowers on the four-point criteria, Deputy Chief Minister Sushil Kumar Modi said today.

These 21 banks, including Axis Bank and ICICI Bank, have scored qualification marks of 25 points out of 100 fixed by the State Government to assess their performance in lending on criteria like credit deposit ratio, primary sector lending, agriculture sector lending and Kisan Credit Card, he told reporters at the sidelines of his weekly ‘Janata Durbar’.

As many as 13 banks scored zero, while the rest scored between 7 and 23 and failed to meet the State Government’s requirement on lending by the banking institutions to the borrowers in Bihar in 2011-12, he said.

The State Government had, therefore, decided against making deposits in these 21 banks till further orders and to withdraw its funds from these banks, Sushil Kumar Modi, who also holds the Finance portfolio, said.