The ‘Bank on Wheels’ was launched as per the Government of India’s Fiscal Inclusion Plans, so as to cover un- banked villages as well as to provide banking services to the villagers at their doorsteps. As part of the campaign, SBI’s MD handed the ‘Bank on Wheels’ vehicle to the Meghalaya Rural Development Society (MRDS).

Speaking at the function, Mr. Kumar stated that the spirit of the launch is to cover un – banked areas and to create financial literacy and awareness of banking habit among the rural masses which remain uncovered by banking activities.

Highlighting further on the activities of SBI, he pointed out that SBI has always played a pivotal role as a socially responsive organisation in contributing towards the numerous initiatives in the social sector.

In the backdrop of this event, Eastern Panorama interviewed Mr. Kumar and got his views on various issues pertaining to the banking sector in the North East region of India. The following are excerpts of this interview.

Eastern Panorama: Welcome to Shillong. Can you tell us a little about the purpose of your visit?

A Krishna Kumar: I have come to Shillong basically to have a review of the performance of the State Bank of India here. This morning we also had a function at the Shillong Main Branch where we donated a school bus to Mary Our Help Training Centre. We also launched a ‘Bank on Wheels’ which is a van that will go into the interior parts of the state and the villages to facilitate the opening of bank accounts. We have also gone to Bethany Society’s Jyoti Sroat School to do some community service banking and carry out some community service initiatives like putting up a roof on a shed and donating blankets and other materials for the visually disabled children there.

EP: How is the State Bank of India different from other banks?

AKK: The State Bank of India is the largest bank in the country. It is a public sector bank and it is different because of its vast reach and size. We have about 14,000 branches across India. Even in Meghalaya, out of the 270 odd branches of all banks, we have about 90 – 95 branches. So we are in every part, in every nook and corner of the country and we, in our bank, are trying to help in the development of the country.

EP: What new initiatives are you planning to help the customers in getting better banking services?

AKK: We have a lot of new initiatives going on especially these days in the age of internet banking and electronics. We are encouraging customers to use ATMs and internet banking. We have also started banking through mobile phones which is a very popular and convenient way to take care of banking for small amounts. These are the various ways through which we hope that the customers now and even in future will be able to benefit from the banking transactions.

EP: There are often complaints of lack of small notes and coins. What are the reasons for this and how can this problem be solved? Do you have any specific suggestions for the public?

AKK: As you know, the supply of notes and coins is dependant entirely on the Reserve Bank of India. What we are doing from our side is that whenever we find that there is a need or necessity to supply coins or notes, we talk to the Reserve Bank of India whose office in this region in at Guwahati and request them to supply the notes and coins.

The suggestion that I have for the members of the public is to try to use cash less because we have to go to a system where we do not use cash much in the economy but rather use cheques or internet banking for transactions.

EP: Does the State Bank of India have any plans to bring out any public issue in the near future?

AKK: We have no plans for any public issue in the near future that is at least till 2012 or 2013. In this regard, we do not have any plans right now.

EP: What are the causes of poor credit / deposit ration of banks in the North East?

AKK: The reasons for the poor credit / deposit ratio in the North East states is actually because, firstly, these states in the North East need to have opportunities, they need to have infrastructure and development first before industries come up. All the banks together, forget SBI, are doing a lot in contributing to the development of agriculture in the North East but the credit / deposit ratio will increase only when you have large and medium size industries coming up. Only when that happens will the credit / deposit ratio go really high. My view is that unless the North East states firstly do a lot for infrastructure development and secondly they encourage the setting up of medium and large scale industries, the credit / deposit ratio will not go up rapidly. It will grow, no doubt, but the fact is that it will grow rapidly only if there is rapid industrialization.

EP: What according to you ails the economy of the North East? What specific suggestions would you give to the business community of the North East region?

AKK: The North East region is a region which is characterized by mainly an agricultural base. So the activities in the North East should be centred around the strength of the North East which is agriculture. So the business community can start agriculture based industries which will help not only in boosting the agricultural economy of the states but it will also help boost industrialization in the states. So, rather than setting up industries which are not based on agriculture, the business community should set up industries which are based on agriculture.

EP: How is the non – productive assets ratio of the North East when compared to the national average? Is your recovery of loans better than in the rest of India or worse?

AKK: The non – productive loans or the NPAs or non – productive assets in the North East are at par with the rest of the country. There is no specific or particular difference between the North East states and the rest of India in terms of bad loans.

EP: What message do you have for the people of the North East region?

AKK: To the people of the North East region, I have to say that we at SBI are here to encourage them in their developmental activities and their productive activities. As you know, we are the lead banker for 6 out of the 7 North East states and through the mechanism of the lead bank, we want to assure the people of the North East that the SBI and for that matter, all the banks, are there to help in the development of the economy and in uplifting their status in the economic society.