The All India Bank Employees’ Association (AIBEA) has said it will demand a national banking policy and national credit plan that is linked to India’s economic development.

This is needed to broad-base loan policy as also to turn the banking industry into a more vibrant one to support all sections of people, CH Venkatachalam, General Secretary, AIBEA, told BusinessLine on the sidelines of a meeting here.

“More loans at lesser interest and easier terms should be extended to agriculture, rural development, infrastructure, education, health and the self-employed, among others,” he said.

“In some States, the credit-deposit ratio is very adverse. These include Jharkhand, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Chhattisgarh and the North East.

“Credit-deposit ratios are around 25-35 per cent in those States. Unless banks pump in more money in the form of credit, these States will not be able to progress,” he said. The ratio is Tamil Nadu is about 112 per cent and it is 95 per cent in Maharashtra. He also stated that there should be attractive plans to augment the savings of people in banks. Measures, such as exempting interest on bank deposits from income tax, will help attract more people to keep their money in banks, he pointed out.

Earlier, Venkatachalam said AIBEA would be holding its 28th conference in Chennai during January 8-11.

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