BANKING TRADE AND COMMERCE

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 6 per cent and 8 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 8 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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