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BHUBANESWAR FRIDAY, NOVEMBER 16, 2012 | 13 Business FM hints at help for stressed sectors ‘All KCCs to be converted to New Delhi, Nov 15: Finance Minister P standard accounts. ATM cards by March, 2014’ Chidambaram Thursday indicated that the "I think all the chairpersons are sensitive to Government may help some of the stressed this matter and am sure we will see through sectors like infrastructure, steel and con- this difficult period before the economy re- struction to recover from the current slowdown covers and the accounts become standard ac- and hoped that interest rates will come down counts," he said. to boost economic revival. On RBI's recent decision to maintain Addressing a press conference after a meet- status quo on interest rates, Chidambaram ing with heads of public sector banks, he stated, "It is a matter of judgement. The RBI said, the Indian economy was not contract- has made its judgement. RBI also added two ing like in many other countries but it is or three paragraphs at the end which points growing at a slower rate. to the future and as I also said future is The Minister said Government would soon more promising.” PTI PHOTO finalise capital infusion for the PSU banks and He said the recent Index of Industrial Chief Executives of public sector banks and financial institutions during a meet- the beneficiaries would include Indian Overseas Production (IIP) figures do not reflect a ing with Finance Minister P Chidambaram (not in picture) in New Delhi, Thursday Bank, Central Bank of India and Bank of trend. "I don't think there is a contraction in Maharashtra. the Indian economy...Our economy is grow- New Delhi, Nov 15: State-owned banks be converted to ATM cards," he said. The Government had proposed to inject ing, it's growing at a slower rate." have been asked to strictly adhere to the March, As per NABARD, as on March 31, Rs 15,000 crore of capital in the PSU banks. The Finance Minister said contraction is a 2014 time-line for converting all Kisan 2012, the banking system has issued 11.39 As regards issuance of new banking licences, wrong word to use. May be in one or two sec- Credit Cards (KCCs) to ATM cards, Finance crore KCCs and sanctioned loans to the Chidambaram said he had written to the tors, there is a bit of dip but overall the econ- Minister P Chidambaram Thursday said. tune of Rs 5,21,617 crore since the inception Reserve Bank to initiate the process of issu- omy is not contracting. He said the banks can "All KCCs will be converted to ATM of the scheme in 1998-99. ing guidelines and start accepting the licences reduce interest rates only to some extent only cards. I have impressed upon all chair- The Finance Ministry has also asked banks pending approval of the Banking Regulation and further lowering was not possible unless persons of the banks that this time-line must to issue KCC to all eligible farmers. On Amendment Act by Parliament. RBI brings down the key rates. be strictly adhered to," Chidambaram said opening of new branches, Chidambaram Referring to problems of some sectors, he "Further benefit needed to be passed on to following a meeting with the chief exec- said banks plan to open 3,955 branches said, "Non Performing Assets (NPAs--bad help to recover. If the economy improves, growth because a loan has become bad. "In fact it (RBI the consumers, interest rates have to come down. utives of State-run banks. in the current fiscal. "In terms of banks debts) is a problem that is a reflection of the improves and the sector will recover. But in guideline) allows for restructuring of an ac- So we have to wait for that date when the in- State-owned lenders were asked to con- branches, in 2011-12, we opened 4,931 slowdown in the economy. This is a reflection the meanwhile we will have to do some hand- count and a bit of handholding to help the terest rates come down", the Minister said. The vert more than 11.39 crore KCCs to ATM branches. Of these 1,098 were in mi- of some sectors which are under stress. So we holding and try to help these sectors recover." sector or industry or the unit to tide through RBI is slated to announce mid-quarterly re- cards within two years starting from April nority concentrated districts. This year the will have to look at it sector wise and try to Chidambaram said RBI's guidelines do this difficult period and when the economy view of monetary policy December 18 and 1, 2012. "We will monitor it every quar- plan is to open 3,955 branches," find ways and means as to which sectors need not prohibit restructuring of accounts just recovers, these accounts will indeed become third quarter review January 29. PTI ter. All KCCs must be converted and will Chidambaram said. PTI IN BRIEFS AVIATION MARKET SBI PENSIONERS’ MEET Rate cut would depend on inflation: Chakrabarty Bhubaneswar: State Bank of India (SBI) is going to organise the Annual Meet of Asia flying Pensioners at Jayadev Bhavan here November New Delhi, Nov 15: Indicating that the re- by 0.25 per cent to infuse additional liq- will slash the policy rates in January. 18. The meeting will discuss on issues and solu- duction in key interest rate would depend upon uidity of Rs 17,500 crore into the finan- Subbarao had said he might take some ac- tions of different kinds related to employee price situation, RBI Deputy Governor K C cial system. Accordingly, the CRR or the tion in the next policy review. The third pension. All retired officers, employees of SBI high despite Chakrabarty (in photo) Thursday said its com- portion of deposits banks have to park quarter review of monetary policy is sched- and IBI are likely to attend the meet. PNN fort level for inflation is 4-5 per cent. with the RBI now stands at 4.25 per cent, uled for January 29, 2013. Talking about the "We are looking for 4-5 per cent inflation while the repo rate, at which RBI lends to deteriorating asset quality of the banks, RSP AWARDED slowdown which is our comfort level," he said on banks, has been retained at 8 per cent. Chakrabarty said, "NPA is high, the situa- Rourkela: Rourkela Steel Plant (RSP) has New Delhi, Nov 15: Asia remains a the sidelines of the meeting of heads of The reverse repo, at which RBI absorbs tion is disturbing but it is not alarming. At bagged the prestigious 'Greentech "relatively bright" aviation market de- public sector banks with Finance Minister excess liquidity through borrowings from some point of time our NPA was 12 per cent." Environment Gold Award' for the ninth con- secutive year for achievements in the field of spite the recent slowdown, with a fast- P Chidambaram here. banks, remains at 7 per cent. The central Non-performing assets (NPAs) of the banks eco-friendly steel making. The award was expanding middle class providing the Inflation, as measured by the Wholesale bank in October also raised the March-end have been on the rise for past several months presented by A K Hazarika, Former Director of launchpad for further growth, a study by Price Index (WPI), for the month of inflation target to 7.5 per cent, from 7 per due to slowdown in economy. The Gross NPAs ONGC Ltd, during the 13th Annual Greentech an airlines' body said Thursday. October stood at 7.45 per cent, much above cent projected earlier. of some public sector banks, including State Environment & CSR Global Conference organ- While China continues to be the largest the RBI's comfort level. Concerned over Subbarao had also hinted that infla- Bank of India, Punjab National Bank and ised at Hyderabad recently, RSP sources said engine for growth in Asia, other parts of persistent inflation, RBI Governor D tion could rise above 8 per cent in the near- Central Bank of India, have crossed 4 per Thursday. On behalf of RSP, the award was the region were also seeing significant in- Subbarao refrained from cutting bench- term. The RBI Governor, who had sug- cent of total assets at the end of September, received by U K Sarkar, GM (Coal & Coke) and creases in demand for travel with a fast- mark interest rate in half-yearly monetary gested a reasonable likelihood of further 2012. "We are asking banks to manage NPA P C Dash, AGM (Environment Engineering), expanding middle class providing a policy review last month. policy easing in the fourth quarter of this portfolio better and there is enough scope company officials said. "brighter outlook" for Asian carriers, the However, RBI reduced cash reserve ratio fiscal year, was evasive on whether he for that," Chakrabarty said. PTI KYC DEADLINE EXTENDED latest study by the Association of Asia Pacific New Delhi: The Government Thursday Airlines (AAPA) has said. extended by 15 days the deadline for filling The outlook for the Asian market "re- Sensex down the Know Your Customer (KYC) form by LPG mains relatively bright" for 2013 despite consumers to month-end. In a nationwide a recent slowdown in traffic growth, Deferred payments for spectrum exercise to weed out multiple or ghost con- challenging conditions in the cargo sec- 147 points nections, the Government had previously tor, stubbornly high oil prices and con- Mumbai: extended the deadline for customers to fill KYC forms by 15 days till November 15.