Finance Minister P Chidambaram on Wednesday asked banks to advance more credit to farmers, entrepreneurs and the government for supporting economic growth.
"Bank credit has to grow to support economic growth. Banks have to advance more credit to farmers, entrepreneurs, students and the government," he said while inaugurating United Bank of India's Internet banking service in Kolkata.
"The country's economy is growing at the rate of nine per cent. But the heart of economy is finance," he added. Chidambaram also advised banks to follow the three 'mantras' -- competition, convergence and consolidation.
Observing that the banking industry was doing well, he said there was a long way to go in terms of acquiring size and strength.
On UBI's performance, he said the bank has achieved a remarkable turnaround, but it should be competitive in the market as well as in its products.
The state-run lender, which has slid to 14th position among public sector banks, should grow at the rate of 18 per cent a year to double its business to one lakh crore in the next 5-6 years.
"UBI has taken 56 years to achieve Rs 50,000 crore (Rs 500 billion) business, but it should double its business in 5 to 6 years," the minister said. Chidambaram also asked the bank to restructure its capital base and list in stock exchanges.
© 2025