Stop transfer of SBI's administrative control from Guwahati to Kolkata: FINER to finance minister

Federation of Industry and Commerce of North East Region (FINER) has sought intervention of Finance Minister Nirmala Sitharaman to stop the transfer of Administrative control of State Bank of India's commercial branch from Guwahati to KOlkata
In a memorandum to the Finance minister, Finer stated, “The commercial branchof SBI in Guwahati opened in 2004 as a result of sustained efforts of the people, and representations to the then Atal Bihari Vajpayee government for having focused Industrial banking facilities in the region. This branch has since rendered solutions to a wide range of credit needs of Industry and enterprise in the region and is the largest branch of SBI in the North East. SBI is the most important bank in the North East, having more than 60% market share, and it is therefore critical that it continues its good work and does not take retrograde steps”.

FINER said that the Prime minister, Narendra Modi has also believed that the North East is “Astha-Laxmi” having potential for being the biggest contributor to the country's GDP.

“Modiji has always stressed on 'ease of doing business'. The current move of SBI is not in consonance with both these principals. The North East circle of SBI bank has been an outperformer and the Commercial Branch in particular, has done exceedingly well. The delinquency rates of SBI and the commercial branch have been consistently much lower than the national average, and significantly lower than the CCG vertical (erstwhile Mid-Corporate Group), where the branch is now being merged, by taking it out of the administrative control of the SBI North East Circle,” it said.

The industry body argued that the branch catered to the needs of the seven states of the North East and funded many a now greenfield MSME units, large units, and was a part of many a success stories written in the region. Over time its MSME customers graduated to be large scale players due to the support, understanding and trust reposed by this branch. CB Guwahati, also caters to Infrastructure companies of the region who are engaged in nation building.

FINER said that the recent developments has grave ramifications for business and enterprise in the region.

“For any GM stationed in Kolkata, the North East will be an insignificant part of his portfolio, and the region will never get the focused attention that the Circle CGM and GM can have. Further, for the people of North East, going all the way to Kolkata would be undesired effort, a different cultural experience, and cumbersome effort, something which we have seen in case of other PSU’s which are controlled through Kolkata. There is a sea difference between the way business is done in Kolkata and in the North eastern region," it added.