Udupi: Deposits plenty in banks, shortage of quality loan seekers

Daijiworld Media Network – Udupi (MS)

Udupi, Aug 5: For every Rs 100 deposit that is being collected in the banks of the district, only Rs 47.25 is given out as loan. Shortage of committed and quality loan seekers is bothering the financial institutions severely.

As of March 31, 2022, the banks have Rs 32,109 crore in deposits. However, it is able to shell out Rs 15,173 crore in loans. As the target of 50% of loan is not reached, the managers and officials of the bank are distraught.

The target was to give Rs 11,452 crore as loan for the year 2021-22. However, only Rs 10,913 crore was given out in loans. Only in home loans and in the priority sectors like loan to weaker sections, MSME and small industries, the target has surpassed 100%.

For agriculture only Rs 2,866 crore could be given while the target was Rs 4,770 crore. In the small industry sector 75% of the target is reached while for medium scale industries 120% achievement is done by the banks.

Banks cannot give out loans as they wish. They should assess the repaying capability of the loan taker. The deposits of NRIs is Rs 5,000 crore and above as of now. There is no demand for industrial loans. The land ownership of those who seek agricultural loans is less. So there is no demand for more than 50 percent, says P M Pinjara, chief manager of Canara Lead Districts Bank.

On the whole, there are 32 banks in Udupi district. They have 407 branches. The deposit in them is Rs 32,109 crore. They have given a loan of Rs 15,173 crore. Total turnover is Rs 47,282 crore.





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Comment on this article

  • Sandesh Kanchan, Mangalore

    Fri, Aug 05 2022

    Most of these government run banks do not provide good customer service or act on complaints. This problem has further magnified post Bank merger. Unlike the olden days, You have managers coming in who do not know the local language, behave arrogantly/ rudely and do not know ABC of good behaviour with customers. That personal connect between managers and customers is missing. Who will give these banks their business in such a scenario? It is is better that these fellows improve their customer service, recruit more locals, only then they can expect improvement, else the downward trend will continue!!!

    DisAgree Agree [13] Reply Report Abuse

  • Rajesh, Mangalore

    Fri, Aug 05 2022

    Banks make money from borrowers.. Depositors are a liability.. loans given are assets .. For The deposits.. banks pay let’s say 5 % interest & Give loans @ 9 % .. The difference is profit ...taking into account bank expenses .. salaries etc ....but yes of course if there are too many who cannot repay & Then the Depositors start asking their money back .. Then there is a situation called bank run .. But in India generally the reserve bank bails out but there have been situations.. Mainly happening through big unscrupulous borrowers .. many a times politically connected ... But borrowers Especially small borrowers..Who give the profits to bank are treated .. old shylockian manner ...

    DisAgree Agree [10] Reply Report Abuse

  • ca girishkk, valencia/m'lore

    Fri, Aug 05 2022

    Effect of DEMONitisation...!!!!!, over regulating cash transaction resulting in money velocity coming down thus lowering the economic activity.., low employment etc., Jokara & ginger seethaka khush....,

    DisAgree [8] Agree [21] Reply Report Abuse

  • Raman, Mangalore

    Fri, Aug 05 2022

    Govt on one side says no recession but this statement ..banks deposits plenty ..means opposite ..no many have good business going on so no need of credit ... The other important is Ten lakh crores write offs lady 5 years .. Statement issued in parliament..so many are wilful defaulters.. When businesses are borrowing at 2 % per month Private fiancées and others surely there is a mismatch who approach bank for Loans ...

    DisAgree [2] Agree [11] Reply Report Abuse

  • Cynthia, Dk

    Fri, Aug 05 2022

    Banks, please dont give such information so openly....Some banks are merged with gujarat banks. When such information is viral, there will be a queue for the loan. Then dont cry he ran to london, or Maldives or kailasa. This is people's hard earned money.

    DisAgree [3] Agree [22] Reply Report Abuse

  • Francis, Kundapur

    Fri, Aug 05 2022

    Adani and Ambani in waiting list

    DisAgree [6] Agree [10] Reply Report Abuse

  • KRPrabhu, Bangaluru

    Fri, Aug 05 2022

    Amgelo mallo mam assa

    DisAgree Agree [6] Reply Report Abuse

  • ca girishkk, valencia/m'lore

    Fri, Aug 05 2022

    Means economy is in downturn..., there is no profitable business opportunities.., All Thug class Crony Jokaras from North & Gujarat were flooded to Coastal district..., drying reasonable/profitable business opportunities..,

    DisAgree [8] Agree [24] Reply Report Abuse

  • Madhav, Mangalore

    Fri, Aug 05 2022

    Banks have to blame themselves. SME was the largest segment that took credit from banks. SME sector was also the highest job creator, It is for the government to think who killed this sector and how. All schemes for SME and individuals are just a eyewash. Ask any entrepreneur and he/she will narrate the pain of obtaining a loan from a bank . If you are in the service sector forget about getting a loan from a Bank even though your idea is good and might work. Banks will ask for collateral asset as security and a guarantor with sufficient assets. In my experience, bank's credit department has neither competency nor interest in evaluating ideas. At the lowest level in banks there is no appetite for using the discretionary power to lend without security or guarantee. As far as small borrower is concerned, banks always play safe. This is the primary reasons for the loan problem and not lack of quality proposals. Banks should remember that there are also a business and in business you will have to take risks.

    DisAgree [1] Agree [19] Reply Report Abuse

  • Shashi Shetty, Santhoor

    Fri, Aug 05 2022

    The rigid laws by finance ministry to check NPAs are one of the main reason . Banks have destroyed many promising business only by blocking the liquidity just because the companies couldn’t pay the interest and EMIs in time during demonitization as well as the difficult financial circumstance . Calling account NPA on short term default of payment which is 3 months is a major road block. In a market when there is credit circle of 60 to 120days credit how can a loan repayment be so accurate month by month ? In the past managers has freedom to lend Adhoc or temporary OD to service the loan which was also done with. Indian market and SME is having major liquidity Chrunch which has destroyed the business so are job market . If this is not corrected bank will start defaulting on deposit interest so are the safety of deposit . When bank banks eat up deposit there is no problem but , if a company gets into bad patch and lose capital then all section of law is out of promoters head. This must also change .

    DisAgree [2] Agree [15] Reply Report Abuse

  • Chandu, Karla

    Fri, Aug 05 2022

    Not to worry.......There are plenty of them to borrow....in thousands of crores from Gujarat... Rajasthan belt and then shut the shop and take flights to Kailasa. Our Super number one powerful team has already written off Rs. 11 lakh Crores of PSU Banks on these panganama accounts without any penal action on borrowers. Anyway we common citizens keep paying GST on chappals, lungis, Cheddies, milk and baby biscuits to help them. Evéryone knows as to which Kanike Dabbas part of all the money ends up in. We keep beating plates, ringing bells, clapping hands, lighting lamps and singing one tune Jai ho Lala.........for double engine growth.........!!!!!!

    DisAgree [5] Agree [21] Reply Report Abuse

  • Deshbhakt, Mangalore

    Fri, Aug 05 2022

    "Deposits aplenty" Means people are wiser than the fool, bankrupt government. Do not eye at their assets with your renewed GST, instead establish manufacturing units where people can get salary and pay you income tax. Instead you are selling assets made by the previous governments. Should have some brains when setting out to form a government in 2014. Utter beggars !

    DisAgree [5] Agree [13] Reply Report Abuse

  • nitin, bangalore

    Fri, Aug 05 2022

    we need one more demonetization from our vishwaguru.

    DisAgree [4] Agree [29] Reply Report Abuse

  • Rajan, Mangalore

    Fri, Aug 05 2022

    Poor credit assessment.. the deserving not considered. Only big loans there is interest because vested interests .. other benefits to loan givers .. Later non performing etc How small businesses are borrowing at 10 to 20 % interest and still running fairly well ..borrowing from private financiers .. They are not considered for bank loans . Process is too long .. complicated and running behind various desks ..Collateral etc etc

    DisAgree Agree [25] Reply Report Abuse

  • Frederick Saldanha, Udupi/Abu Dhabi

    Fri, Aug 05 2022

    Through this article, are you inviting the new Mallya, Nirav Modi to ask for loans? In banks it is not new to give quality loans. This has been from beginning. it is in the recent past that people started misusing the system by corruptions, bad loans are on rise Publish an article how to stop extending bad loans. In a recent article bank had given loan against fake documents. How this is being done, Publish article on that, why there are no policies in place to verify the correctness of documents, why there is no proof to find out the real owners of the plot/building..

    DisAgree Agree [18] Reply Report Abuse

  • prakash, Manipal

    Fri, Aug 05 2022

    This shows the vacuum in Govt policies... There is no congenial atmosphere for new ventures... Result will be one more round of painful bad loans where many established banks may find hard to survive... Cooperative banks are already in shambles...

    DisAgree [2] Agree [11] Reply Report Abuse

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