Palamu’s banking sector came under sharp criticism from Jharkhand Finance Minister Radhakrishna Kishore, who flagged low loan advances and negligible CSR spending during a district-level review meeting on Thursday. The minister warned that if banks fail to fulfil their obligations towards the social sector, the Government may consider withdrawing its deposits.
Also Read: Rs. 18,000 Crores Blocked in Departmental PL Accounts, Misuse of Funds Flagged
CSR Spending Found Negligible
Kishore expressed disappointment that State Bank of India, the largest lender, spent only Rs. 11 lakh under CSR in the district while other banks reported no spending at all. He reminded banks that they are mandated to spend at least 2% of profits on CSR activities. “People’s money stays in these banks. It must also come back to the region for social development,” he remarked, adding that the Government might reconsider keeping its funds with banks that do not contribute to local welfare.
Also Read: Jharkhand Cabinet Formed Group of Ministers to Examine Saranda Sanctuary Proposal
CD Ratio Below Benchmark
Speaking after the District Level Consultative Committee (DLCC) meeting for the June 2025 quarter, Kishore said that Palamu banks together hold over Rs. 9000 crores in deposits, but only 41% of it is being used for credit disbursal. “At least 50% CD ratio is required to support employment and local growth. If this is not met, we will take it up with the RBI,” he added.
Also Read: Jharkhand Finance Minister Presented Rs. 4296 Crores Supplementary Budget
Focus on MSME, KCC and Govt Schemes
The meeting also reviewed performance under MSME lending, Kisan Credit Card (KCC), PM Mudra Yojana, dairy and poultry loans, and PMEGP. Axis Bank led MSME lending with Rs. 6 crores disbursed, while overall MSME achievement stood at Rs. 355.04 crores against the annual target of Rs. 657.39 crores for FY 2025-26. Deputy Commissioner Sameera S. stressed that banks must act promptly on pending KCC applications and improve linkage support to women self-help groups under JSLPS.
Instruction for Timely Meetings and Better Performance
Kishore questioned the delay in holding the quarterly review meeting and directed that future meetings be held on schedule. He said the agriculture credit target of 8.34% growth for the current fiscal was unsatisfactory and urged banks to work proactively to bridge the gap.
Also Read: Ranchi Hosted 4th Mining Summit, Called for Balance Between Growth and Environment
Join the WhatsApp Group of Business Jharkhand to Stay tuned for all the latest updates of industrial-political developments in Jharkhand.
