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Drastic decline in asset quality Too big to fail and too small to sail Lacklustre credit expansion A development bank for BRICS Just 660 days! Target over-ambitious... How ‘secure’ are the secured loans? Mega merger is on New bank licences, at last... Cut in repo rate – lower than expected Fund healthcare clinics in villages... Aadhaar, niraadhaar and banking Merger mania haunts banks One down in private sector Financial inclusion vs unclaimed deposits Managing NPAs... New capitals of Migrant banks Greet Lakshmi the banking robot Ferrying digital banking to Lakshadweep Growing gainfully Smart banking in smart cities Targets continue to be ad hoc Governance in Reverse Gear? Small finance payment banks... Banking on Risk Bank deposits account for 46.3 per cent of household savings Good, bad and ugly Small finance banks offer high interest rates Rationalised Growing volume of stressed assets… Grows Bigger Payment banks have arrived The paradox: clamour for the Goliath and David A new development bank rising in the east… Well-lived... Reaching out: is it slowing down? Banking in Telangana Bottomlines shrink, bad loans rise... LVB- A supermarket of financial services A bank for women, by women Drop in SLR- sparing lendable resources Monetary policy continues to adopt dis-inflationary path Why priority status? Cautious and considerate Cradle of banks to a smart city... All that glitters is not gold... Another route for achieving financial inclusion Who is the real beneficiary? It’s a war on black money, support it. Two banks: their jubilees and performances United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Ernakulam excels... Nothing much can happen…. Insatiable appetite for credit Capital base of regional rural banks raised Thirty more cities seek to become SMART Emerging crisis Holy or unholy? The collaboration suite of cyber criminals Anytime banking to anywhere banking Stage set for Indian ‘avatar’ of foreign banks Reaching the Unreached… Hesitancy in announcing year-end results Indian customers are tech savvy Why any time money? Perhaps small is more beautiful than big! Small is ‘more’ beautiful From lazy banking to easy banking How okay are new banks? Big bank merger, bigger expectations Banking overhauling or reorganisation? Needed a Banking Atlas What is the priority – mergers or NPA reduction?
 
Fund healthcare clinics in villages...
The Union Budget 2015-16 proposes to combine the three programmes – Jan Dhan, Aadhar and Mobile banking to reach the benefits of developmental programmes directly to the beneficiaries through bank accounts.

Adopting the year 2022 as the target date - coinciding with the 75th anniversary of our Independence – a number of welfare programs would be implemented, like Housing for all, Health for all, Universal Social Security and Insurance cover for the poor at an annual premium of just Rs.12

Implicit in the Budget proposals is the strategic role assigned to the banking sector in facilitating the achievement of the crucial targets set for 2022. Though the Finance Minister has not elaborated the specific task assigned to the banking sector, a proactive role has to be played by banks.

 

Housing for all by 2022

According to an estimation made by the Technical Group on Urban Housing Shortage, about 19 million households in urban India face housing shortage. Regarding the rural housing shortage, the Working Group on Rural Housing for the Twelfth Five Year Plan has estimated it to be 43.6 million houses. By a rough estimate, the number of houses to be built to reach the target could be anywhere over 60 million houses. Even if the Government of India and all the state governments could formulate schemes for affordable housing, the banking sector has to accelerate its lending to the housing sector. As on March 2013, banks have only 6,570,334 housing loan accounts and the amount of housing loan outstanding is Rs.4,647,112 million. It is not easy to estimate the volume of housing loans to be sanctioned to provide housing to all by 2022.

The Reserve Bank of India has announced recently a positive step to facilitate house loan borrowings below Rs.10 lakh. “With a view to encourage availability of affordable housing, it has been decided that in such cases, banks may add stamp duty, registration and other documentation charges to the cost of the housing unit for calculating loan to value ratio,” the RBI notification has said. At present there is concentration of housing loans in the urban areas in a few states. Banks may have to spread out their housing loans in the rural and semi-urban areas also.

 

Health for all

Inadequacy of medical facilities and its total absence in remote villages has been a major lacuna of regional development in India. In one of the earlier Five Year Plans, there was a programme aiming at Health for All. New medical colleges were permitted under this plan and a large number of medical graduates were turned out. But there has been very little improvement in the availability of medical facilities in rural India. Reluctance of the young medicos to serve in rural areas was one of the major constraints. There are more bare-foot bankers than bare-foot doctors in rural India today.

States have to increase significantly outlays on healthcare to ensure that medical facilities would be within the reach of all rural households. The corporate sector, more particularly pharmaceutical companies, who are cash rich, may be directed to utilise a part of their funds earmarked for discharging Corporate Social Responsibility, to provide health care centres in villages. Banks may have to extend financial support to young doctors to set up their clinics in rural areas.

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