A recent press report said that the government has directed public sector banks to process loan applications within three months, which is a move aimed at boosting economic activities.
A senior public sector bank official told the press that the banks have received letter from the Finance Minister indicating time-limit for processing of loans. He said that the maximum limit for sanctioning or rejecting loans of any kind has been fixed to 90 days after receiving application.
According to the report another official has said that each bank will have its own turn-around-time (TAT), within which loans are required to be processed and that the direction from the finance ministry will standardize the TAT.
Reports said that the government has issued directions to give a boost to the economic activity and that the country’s economic growth slipped to 18-month low of 7.7% from 8.8% in the first quarter of the current fiscal.
Report also said that the credit off take from banks grew by 20.7% to over Rs 41 lakh crore during the one-year period ended August 2011 in spite of high interest rates.