Financial assistance is very much required for the rural development. The rural professional wholesomely depends upon the assistance the government and non government organisation provide and the various schemes that helps to develop the sector.
Likewise, in the State of Odisha, commercial banks are found a miss to support the rural areas, according to the NABARD study. There are 45,888 villages having population below 2,000 in the State. “Through a special initiative of the State government and banks, a five-year action plan has been drawn under which the banks will open branches in 4,597 uncovered gram panchayats (GPs) of the State allotted to different banks. The State government has also agreed to provide physical infrastructure wherever available for opening of the branches,” the paper says.
It finds: “As against the target of 1,118 branches for 2014-15, banks have so far opened 119 in unbanked GPs.”
“Priority Sector Advances for all the 26 public sector banks stood at 47.88 per cent by last fiscal. In case of 14 private sector banks, the same stood at 37.11 per cent. Out of 40 commercial banks, 20 lagged behind the stipulated target of 40 per cent. Most of the banks fell short of stipulated target of 18 per cent of extending advances to agriculture.”
“The , an important indicator of banks’ contribution to development, remained a matter of concern. The overall CD ratio in the State was 85.31 per cent as on March 31 2014, which decreased to 73.19 as on March 31, 2015. Deposit increased by 15.67 per cent, but advances recorded negative growth of 0.77 per cent as on March 31, 2015,” says the apex development bank.