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BANKING TRADE AND COMMERCE
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JOINT STOCK BANKS
The origin of modern banking in Amravati district could be traced as far back as 1868 when a branch of the Bank of Bombay
was established in Amravati city. To-day the banking business
in the district has considerably expanded owing to numerous
factors. The principal among them is the position of the district as a flourishing centre of cotton trade. The banks have
played an important part in the financing of cotton business in
the district during the last fifty years. Besides cotton, Amravati
district is also famous for the production of fruits like oranges
and bananas. The export trade of these fruits is mainly financed
by the banks.
In 1961 there were eleven joint stock banks in Amravati district. Of these, ten were the branch offices of the banks with their head offices outside the district while one was a sub-office.
The following statement gives the names of these banks and their location in the district: -
Place |
Name of Bank |
No. of Offices |
(1) |
(2) |
(3) | |
Achalpur |
State Bank of India |
1 Branch. | |
Amravati |
State Bank of India |
1 Branch. | |
-- |
Central Bank of India |
1 Sub-Office. | |
-- |
Bank of Baroda |
1 Branch. | |
-- |
Bank of Maharashtra |
2 Branches. | |
Dhamangaon |
State Bank of India |
1 Branch. | |
Warud |
State Bank of India |
1 Branch. | |
Daryapur |
State Bank of India |
1 Branch. |
The main functions of the banks are to accept deposits and make advances to agriculturists, traders and industrialists. In Amravati district, as mentioned above, these banks have played an important part in financing cotton and oil-milling industry. The State Bank provides remittance facilities at tahsil level for which it has opened branches at important centres in the district. The facilities of safe deposit vault are, however, available only at Amravati.
The branches of the State Bank of India have been endeavouring to promote and popularise the warehousing scheme. They give priority to the financing of small-scale industries in the district. The rates of interest charged by them on advances depend on the nature of the security and the amount required. The rates vary between 6¾ per cent and 8¼ per cent per annum. Lower rates of interest are charged for advances against Government securities as well as to small-scale industries and co-operative institutions or societies. Advances against warehouse receipts covering marketable grain and seeds are also granted at slightly reduced rates of interest.
Another important bank serving the credit needs of the people
is the branch of the Punjab National Bank, Ltd., established at
Amravati in 1954. It carries on all the functions that a modern
commercial bank is expected to perform. It deals in cash
credit. It mainly advances against commodities such as grain
and pulses, oils and oil-seeds, cotton and cotton bales and other
commodities of daily consumption. The advances are payable on demand. The rate of interest varies between 7 per cent and 8½ per cent per annum.
The other important bank in Amravati is the branch of the Central Bank of India, Ltd., which was established in 1946. The Bank provides the same usual facilities as any other joint stock banks would do. It has proposed to introduce safe deposit vault facilities at Amravati. As regards the rates of interest, the Bank is bound by the All-India Interbank Agreement on the rates of interest on advances whereby the big banks maintain uniformity in the rates of interest charged by them. The Bank of Maharashtra has started its operations only recently in the district.
The following tables show the average month-end deposit balances of the banks in Amravati district in the half-year from July to December 1961.
They also give the position of advances of all the scheduled banks in Amravati district for 1960, 1961 and 1962 (March end).
TABLE No. 13
ANALYSIS OF DEPOSITS OF JOINT STOCK BANKS, DISTRICT AMRAVATI
(Rs. in lakhs)
Centres |
Deposits at the end of Dec. 1961 | |
1. |
Amravati Town |
161 Average of month-end deposit balances in the half-year July-December, 1961. | |
2. |
Ellichpur |
37 | |
3. |
Dhamangaon | |
4. |
Warud | |
5. |
Daryapur |
TABLE No. 14
ADVANCES OF ALL SCHEDULED BANKS IN AMRAVATI DISTRICT
ACCORDING TO SECURITY
(Rs. in lakhs)
Nature of Security (1) |
March 25, 1960 (2) |
March 31, 1961 (3) |
March 30, 1962 (4) | |
I. Food Articles- |
-- |
-- |
-- | |
Paddy and Rice (Total 1+2) |
-- |
9 |
14 | |
1. To Rice Mills |
-- |
-- |
9 | |
2. To Others |
-- |
9 |
5 | |
Wheat- |
-- |
-- |
-- | |
(Total 3 -4) |
3 |
15 |
17 | |
3. To Flour Mills |
-- |
-- |
1 | |
4. To Others |
-- |
15 |
16 | |
5. Gram |
12 |
185 |
6 | |
6. Other grains and pulses (including Jowar, Bajra and Maize). |
913 |
1,594 |
978 | |
Sugar and Gur- |
-- |
-- |
-- | |
(Total 7-8) |
550 |
313 |
288 | |
7. To Sugar Factories |
74 |
-- |
215 | |
8. To Others |
476 |
313 |
73 | |
9. Vegetable oils including Vanaspati |
143 |
512 |
108 | |
II. Industrial Raw Materials- |
-- |
-- |
-- | |
10. Groundnuts |
227 |
241 |
289 | |
11. Other Oilseeds |
882 |
1,357 |
962 | |
Cotton and Kapas- |
-- |
-- |
-- | |
(Total 12-13-14) |
5,940 |
8,944 |
9,452 | |
12. To Cotton Textile Mills |
525 |
1,128 |
1,806 | |
13. To Ginning Factories |
2,201 |
4,338 |
3,832 | |
14. To Others |
3,214 |
3,478 |
3,814 | |
15. Raw Jute |
5 |
3 |
-- | |
16. Hides and Skins |
2 |
-- |
-- | |
III. Plantation Products- |
-- |
-- |
-- | |
17. Tea |
-- |
-- |
-- | |
18. Cashewnuts |
-- |
-- |
-- | |
19. Pepper and other Spices |
-- |
1,781 |
6 | |
20. Coffee |
-- |
-- |
-- |
TABLE No. 14-contd.
Nature of Security (1) |
March 25, 1960 (2) |
March 31, 1961 (3) |
March 30, 1962 (4) | |
IV. Manufactures and Minerals-
Cotton Textiles (Including yarn Total. 21-22). |
1,776 |
832 |
2,686 | |
21. |
To Mills |
1,190 |
-- |
1,949 | |
22. |
To Others |
586 |
832 |
737 | |
23. |
Jute Textiles |
-- |
-- |
5 | |
24. |
Other Textiles (Silk, Art Silk, Woollen, etc.) |
-- |
-- |
9 | |
25. |
Iron, Steel and Engineering Products. |
53 |
100 |
101 | |
26. |
Other Metals and Metal Products |
6 |
6 |
7 | |
27. |
Coal, Manganese, Mica and other Minerals and Mineral Oils. |
-- |
-- |
--0 | |
28. |
Chemicals, Dyes, Paints, Drugs and Pharmaceuticals. |
7 |
8 |
51 | |
29. |
Electrical Goods |
-- |
4 |
-- | |
30. |
Rubber and Rubber Products |
-- |
1 |
-- | |
31. |
Other Manufactured Goods |
24 |
7 |
110 | |
V. Other Securities- 32. Real Estate |
17 |
17 |
-- | |
33. |
Gold and Silver Bullion |
262 |
5 |
6 | |
34. |
Gold and Silver Ornaments |
-- |
506 |
496 | |
35. |
Fixed Deposits |
34 |
58 |
37 | |
36. |
Government and other Trustee Securities. |
223 |
495 |
181 | |
Shares of Joint Stock Companies- (Total 37-38) |
7 |
8 |
2 | |
37. |
To Stock and Share Brokers and Dealers. |
-- |
-- |
-- | |
38. |
To Others |
7 |
8 |
2 | |
39. |
Debentures of Joint Stock Companies. |
-- |
1 |
1 | |
VI. Other Securities- 40. Assets of Industrial Concerns Fixed or Floating (other than those specified under above categories). |
-- |
-- |
-- | |
41. |
Other Secured Advances not mentioned above. |
642 |
727 |
606 | |
42. |
Composite Advances |
48 |
142 |
177 | |
Total Secured Advances- (Total 1 to 42) |
11,776 |
17,871 |
16,595 |
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