Banks warned of action over poor loan disbursal

Kanpur: District magistrate Jitendra Pratap Singh on Wednesday took a strong stance against the indifference of banks in implementing the CM Youth Entrepreneur Scheme in the city and said negligence at any level in this ambitious government scheme would not be tolerated.During a review meeting held here on Wednesday, the DM expressed strong displeasure that several banks did not disburse a single loan against the set targets under the CM Youth Entrepreneur Scheme.
The review showed that Yes Bank, Kotak Mahindra Bank, IndusInd Bank and Bandhan Bank were given a target of providing loans to 40 people each in the financial year 2025-26, but these banks did not disburse a single loan so far. IDBI Bank disbursed only seven loans against a target of 40, and Bank of Maharashtra disbursed only six loans. IDFC First Bank disbursed only one loan against a target of 40. Similarly, Axis Bank did not disburse a single loan against a target of 200. HDFC Bank disbursed 75 loans against a target of 210, and ICICI Bank disbursed only 26 loans against a target of 200.In contrast, Bank of Baroda performed better and disbursed 420 loans against a target of 550. State Bank of India provided loans to 347 against a target of 650, and Punjab National Bank provided loans to 251 against a target of 500.The DM warned that letters would be sent to senior officials of the banks with unsatisfactory performance recommending necessary action.Under the scheme, the district was given a target of 4,000 loans, against which 2,313 loans were disbursed so far. The DM instructed that pending applications be processed quickly and eligible youths be provided loans without unnecessary delay, failing which strict action would be taken against negligent banks.