 |
BANKING, TRADE AND COMMERCE
|
 |
JOINT-STOCK BANKS
The districts of Marathwada remained backward under the ex-Hyderabad
State socially as well as economically. Bhir is predominantly an
agricultural district with poor development in other fields. The
growth of banking was slow and limited and there were banks at a
few urban centres only. The money-lender was the principal
supplier of credit to the people who were mostly agriculturists.
There were also some pedhis doing business at the district
place but they combined banking with other type of commercial
activity. Their business declined considerably following the
implementation of the Money-lenders' Act, 1946 and the readiness
shown by the state in providing credit to the public through its
agencies.
Modern banking may be said to have begun when the State Bank of
Hyderabad was established in the ex-Hyderabad State under
the Hyderabad State Bank Act of 1350 Fasli. An office of
this bank was opened at Parali-Vaijnath in 1947. The banking act
was "to regulate the circulation of currency, to maintain in the
fullest degree its stability and security, to facilitate payment
of money inside and outside the Dominions, to provide credit for
the economic requirements of the country and to support in a
better manner agriculture, trade, commerce and industry".
The State Bank of Hyderabad mainly transacted government business
such as accepting and holding of monies belonging to the
government and making payments on its behalf and other routine
business such as exchange, remittance, etc. The bank also worked
as an agent of the government in its function of issuing paper
currency.
The other business which the bank was authorised to transact
included the following: —
(1) Advancing and lending money.
(2) Selling or realisation of cash in respect of promissory-notes,
debentures, stock receipts, bonds, annuities, shares etc.
(3) Advancing and lending money to court-of-wards.
(4) Dealing in bills of exchange and other negotiable instruments.
(5) Transacting cash agency business on commission basis and
entering into general contracts or suretyship contracts with
specific security or without security.
(6) Administration of any estates for any purpose.
(7) Borrowing money for the purpose of the bank's business
and the giving of security for such loans by pledging assets or
otherwise.
Subsequent to the establishment of the branch of this bank at
Parali-Vaijnath, another branch was opened at Bhir in March 1947.
A third branch was inaugurated at Ambejogai (Mominabad) in 1959.
The bank is now a wholly-owned subsidiary of the State Bank of
India. There is no clearing house or banks' association at any of
these places. A proposal, however, for opening a branch at
Manjlegaon is under active consideration. Recently, the Bank of
Maharashtra has also opened two branches in the district, one at
Ambejogai and the other at Parali-Vaijnath.
The rates of interest on deposits are now largely standardised and
depending on period, vary from three to six per cent. On advances,
depending on security period which is generally six months to a
year, the rate of interest varies from six and a half per cent to
nine per cent. In the absence of industrial development on a large
scale, the banking business has not prospered much in this
district. It is mostly restricted to the agricultural sector,
though the banks extend financial assistance to small-scale and
cottage industries at concessional rates of interest. The advances
that are generally made are medium-term and are repayable within a
period of seven years against suitable and adequate security
including that of immovable property.
The following table gives the advances made by the banks in Bhir
district till the end of each of the financial years from 1960 to
1962. It also gives the average of month-end deposit balances in
the half-year i.e., from July to December 1961.
TABLE No. 9.
Advances of all Scheduled Banks in Bhir District according
to security
|
Nature of security |
(Rs. in thousands) |
|
March 25, 1960 |
March 31, 1961 |
March 30, 1962 |
|
(1) |
(2) |
(3) |
(4) |
|
I. Food articles— |
|
|
|
|
Paddy and rice
(total 1+2) |
21 |
11 |
14 |
|
1 To rice mills |
-- |
-- |
10 |
|
2 To others |
21 |
11 |
4 |
|
Wheat
(total 3 + 4) |
1 |
-- |
-- |
|
3 To flour mills |
-- |
-- |
-- |
|
4 To others |
1 |
-- |
-- |
|
5 Gram |
-- |
3 |
-- |
|
6 Other grains and pulses (including jowar, bajri and
maize). |
116 |
157 |
186 |
|
Sugar and gur
(total 7 + 8) |
35 |
23 |
15 |
|
7 To sugar factories |
-- |
-- |
-- |
|
8 To others |
35 |
23 |
15 |
|
9 Vegetable oils including vanaspati |
105 |
87 |
183 |
|
II. Industrial raw materials— |
|
|
|
|
10 Groundnuts |
631 |
1,884 |
1,445 |
|
11 Other oilseeds |
308 |
720 |
108 |
|
Cotton and kapas
(total 12+13 + 14) |
5 |
252 |
111 |
|
12 To cotton textile mills |
-- |
-- |
1 |
|
13 To ginning factories |
-- |
238 |
110 |
|
14 To others |
5 |
14 |
-- |
|
15 Raw jute |
-- |
-- |
-- |
|
16 Hides and skins |
-- |
-- |
-- |
|
III. Plantation products— |
|
|
|
|
17 Tea |
10 |
3 |
5 |
|
18 Cashewnuts |
-- |
2 |
-- |
|
19 Pepper and other spices |
2 |
2 |
-- |
|
20 Coffee |
-- |
-- |
-- |
|
IV. Manufactures and minerals— |
|
|
|
|
Cotton textiles
(including yarn) (total 21 +22) |
5 |
30 |
-- |
|
21
To mills |
-- |
-- |
-- |
|
22
To others |
5 |
30 |
-- |
|
23
Jute textiles |
-- |
-- |
-- |
|
24
Other textiles (silk, art silk, wollen, etc.) |
-- |
-- |
33 |
|
25
Iron, steel and engineering products |
-- |
-- |
-- |
|
26
Other metals and metal products |
-- |
-- |
-- |
|
27
Coal, manganese, mica and other minerals and mineral oils. |
-- |
2 |
-- |
|
28 Chemicals, dyes, paints, drugs and pharmaceuticals. |
|
|
|
|
29 Electrical goods |
|
|
|
|
30
Rubber and rubber products |
-- |
-- |
-- |
|
31
Other manufactured goods |
-- |
6 |
6 |
|
V. Other securities— |
|
|
|
|
32
Real estate |
-- |
-- |
17 |
|
33
Gold and silver bullion |
23 |
-- |
-- |
|
34
Gold and silver ornaments |
-- |
39 |
103 |
|
35
Fixed deposits |
23 |
17 |
17 |
|
36
Government and other trustee securities |
25 |
14 |
2 |
|
Shares
of joint-stock companies (total 37+38) |
-- |
1 |
-- |
|
37
To stock and share brokers and dealers |
-- |
-- |
-- |
|
38
To others |
-- |
1 |
-- |
|
39
Debentures of joint-stock companies |
-- |
-- |
-- |
|
40
Assets of industrial concerns |
-- |
-- |
105 |
|
41
Other secured advances not mentioned above. |
148 |
202 |
297 |
|
42
Composite advances |
26 |
36 |
8 |
|
Total secured advances—
|
|
|
|
|
(Total 1 to 42) |
1,484 |
3,491 |
2,654 |
|
Deposits |
|
|
|
|
Average of month-end deposit balances in the half-year
July-December-1961. |
Rs. 4,000,000. |
|
The securities, against which advances are
made by the banks are of various types, from food articles to
shares of joint-stock companies. Amongst them paddy and rice,
industrial raw materials like groundnuts and other oil-seeds and
gold and silver bullions and ornaments were given preference over
other types.
The other securities consist of plantation products such as tea,
cashewnuts, pepper and spices, manufactures and minerals, iron,
steel and engineering products etc.
|
