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PM to address bankers' meet on Aug 30

Our Bureau

CALCUTTA, Aug. 28

THE Prime Minister, Mr. A.B. Vajpayee, will address a meeting of bankers in New Delhi on August 30. The issue of providing adequate bank loans to small-scale industries, among other things, is likely to come up for a review. The formation of a credit gua rantee trust fund, especially for the small-scale sector under the Small Industries Development Bank of India (SIDBI) may be announced at the meeting, according to banking industry sources.

The problems facing small industries have been in drawing the attention of the Union Government for sometime. While banks insist on collaterals before advancing loans to small units, the majority of these units are unable to provide such securities. This impairs flow of bank credit to this sector.

Even in many cases where loans have been advanced, the level of their utilisation has not been proper and consequently repayment is far from satisfactory and there is addition to banks' NPAs. The proposed trust fund may try to provide necessary guarante es, thereby relieving banks and small industries of their headache over collaterals.

The structure and operational mechanism of the proposed trust fund may be detailed at the meeting. In this context, it may be mentioned that resolution taken up by the national executive of BJP at its meeting in Nagpur on Sunday emphasised the need to pr ovide adequate protection and support to small-scale industries.