Tamil Nadu Minister for Finance and Human Resource Management Thangam Thennarasu noted that the regional disparities in credit disbursements should be eliminated.
“Data suggests that there is a skewed distribution of credit to certain districts. By implementing targeted strategies, tailored interventions, and focused development initiatives, the banks have to ensure that the benefits of a thriving credit economy are shared equitably across all regions of Tamil Nadu,” he highlighted at the State-level Bankers Committee meeting.
Noting that 417 new bank branches have been opened in the State in the last financial year, the Finance Minister said, “It is important that remote habitations, including forest areas, are effectively serviced by banking facilities.” He added, “I urge the banks to ensure the use of the Tamil language in ATMs and the front desks of bank branches to ensure ease for the people of our State.”
He also pointed out that despite the continuous efforts of the State, the reach and scale of the State’s expenditure remained limited. “The size of the State’s budget, standing at ₹3.65 lakh crore, is a mere 13% of the State’s economy. In comparison, the total advances in the credit economy stand at ₹13.03 lakh crore, highlighting the tremendous potential that the banks hold to drive Tamil Nadu’s progress to new heights. Thus, collaboration between banks and the government can immensely enhance the effectiveness of our efforts and achieve greater impact for the benefit of our State and its citizens,” he said.
Mr. Thennarasu also mentioned that while there has been growth in credit to the MSME and agriculture sectors, there has been a decrease in advances to the housing and education segments, which is a matter of concern. “Providing quality education is one of the top priorities of this government, and lack of credit should not be an obstacle for the students,” he noted.
