Twelve banks under the Prime Minister's Employment Generation Programme (PMEGP) have performed below the state average of 83.06 % during 2008-09.

These banks include Indian Overseas Bank (77.26 percent), Syndicate Bank (68.28 percent), Rushikulya Gramya Bank (58.34 percent), and Union Bank of India (57.85 percent), Baitarani Gramya Bank (51.34 percent), Indian Bank (51.19 percent), Canara Bank (35.12 percent), Dena bank (33.65 percent), Utkal Gramya Bank (29.84 percent), Corporation Bank (8.6 percent) and State Bank of Hyderabad (7.93 percent).

On the other hand, ten banks have performed above their state averages during the same period. These banks are Allahabad Bank (134.67 percent), Bank of Baroda (118.1 percent), Punjab National Bank (115.5 percent), and State Bank of India (117.73 percent), Central bank of India (111.3 percent), Nilachal Gramya Bank (98.88 percent), Bank of India (90.38 percent), Uco Bank (85.61 percent), Andhra Bank (85.6 percent) and United Bank of India (85.5 percent).

However, if considered on aggregate terms, then the performance of the banks under the PMEGP has not been up to the mark this financial year with overall disbursement to sanction ratio being only 50.8 percent till 16 March 2010.

This was stated by the director of industries, Hemant Sarma in the state level workshop on PMEGP. While disbursement of loans sanctioned to the beneficiaries of the scheme was nil for five banks, the performance of four banks was poor.

The banks which have not yet started with disbursements are Corporation Bank, Dena Bank, State Bank of Hyderabad, State Bank of Bikaner and Jaipur and State Bank of Travancore (SBT). The achievement of Union Bank of India, United Bank of India, Andhra Bank, Indian Bank is not satisfactory.

Sarma said, SBI had the highest number of 105 no sanctioning and 148 no disbursing branches in the state. While Uco bank had 42 zero sanctioning and 31 zero disbursing branches, Union Bank had 22 zero sanctioning and 12 zero disbursing branches. The same for the United Bank of India is 23 and 22 respectively.

Industry secretary, Saurabh Garg said, though a target of Rs 30 crore was given to banks for margin money under PMEGP, Khadi and Village Industries Commission (KVIC) is willing to provide more funds to the state.

KVIC still has Rs. 150 crore left to be provided as margin money, so banks can avail this fund.