Banks should act as 'matchmakers' to unlock Bengal's investment potential: NITI Aayog vice-chairman Ashok Lahiri
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Banks should go beyond traditional lending and act as facilitators to connect businesses with financial resources and investment opportunities to unlock West Bengal's industrial potential, NITI Aayog vice-chairman Ashok Lahiri said here on Friday.
Speaking at a CII-organised banking colloquium here, Lahiri said the sector could play a wider role in promoting investment by leveraging its extensive business networks, industry relationships and knowledge of potential projects.
"Can banking go beyond providing credit? Technically, yes," he said, arguing that banks could act as "matchmakers" between businesses and suitable sources of finance.
Pointing to regional disparities in credit deployment, Lahiri said the credit-deposit (CD) ratio in the Eastern Region stood at 47.5% in 2023, the lowest among the regions, compared with 93.6% in the South, 82.8% in the West and 77.5% in the North, a statement said.
The ratio was 56.1% in the Central Region and 50% in the Northeast.
He attributed the relatively low credit absorption in the East partly to the limited availability of bankable investment opportunities and productive economic activity.
Lahiri said the state's share of the country's population was higher than its contribution to national income, while its per capita income was around ₹2 lakh, below the national average.
"Limited industrial modernisation is another factor contributing to low productivity and weaker credit absorption. The state needs to strengthen its investment-driven economy, as economic growth cannot be sustained without continuous expansion and modernisation," he said.
He called for large-scale investments in infrastructure, including a deep-sea port, industrial expansion and the MSME sector, saying such projects could generate a multiplier effect by attracting further investments.
"Banks have extensive business networks, established industry relationships and knowledge of investment opportunities. They can act as facilitators and matchmakers by connecting businesses with suitable financial resources and investment opportunities. This would benefit both the state and the banking sector," Lahiri said.
He also said banks could help smaller enterprises scale up through structured credit facilities and capacity-building, enabling them to grow into larger businesses.
Other speakers at the colloquium also stressed the need for banks to support enterprise development, improve capital flow to eastern India and play a larger role in facilitating investment beyond conventional credit.