Priority sector lending to agriculture and allied sectors in Madurai district has been projected to increase by 17 per cent to Rs. 2,175 crore during 2010-11.
In its annual potentially linked credit plan (PLP), the National Bank for Agriculture and Rural Development (NABARD) has estimated that an increase of Rs. 327 crore from the current fiscal's target of Rs. 1,848 crore set under the Annual Credit Plan 2009-10, R. Shankar Narayan, Assistant General Manager, NABARD, told The Hindu in Madurai on Thursday.
The PLP covers all the thrust areas and assessed the credit requirement in all the 13 blocks of Madurai district.
“The State and Central Governments along with the Planning Commission have been emphasising on agricultural term loan for capital formation, for which a potential exists for giving Rs. 196 crore. Non-farm sector could be expected to consume Rs. 383 crore,” he said.
Crop loans have the potential to exceed Rs. 331.50 crore while Other Priority Sectors can absorb Rs. 1,265 crore. They include financing for transport operators, retail trade, professional self employed, and loans for education, consumption and homes.
These projections had been arrived at after consulting various State Government agencies such as the Departments of Animal Husbandry, Agriculture, Horticulture, Fisheries and a cross section of the bankers. The potential available in various sectors have been factored in while arriving at these figures, he said.
The next step would be taken up by Lead Bank (Canara Bank), which will commence the exercise of preparation of Annual Credit Plan based on the PLP after apportioning the targets among individual banks appropriately.
The PLP was released by Dinesh Ponraj Oliver, District Revenue Office in Madurai on Thursday with S. Selvaraj, Assistant General Manager, Reserve Bank of India (RBI), getting the first copy.K.P. Pai, Assistant General Manager, Canara Bank, KN. Subramanian, Lead District Manager, and Thangavelu, Project Officer of Mahalir Thittam, were also present.