Priority sector advances to go up by 33 per cent

Banks in the district would advance Rs.3995.80 crore to the priority sector during 2013-14, about Rs.988.51 crore more than the current financial year.

The Annual Credit Plan released here on Wednesday comes close to the credit potential of Rs.4,108.67 crore envisaged in the Potential Linked Credit Plan brought out earlier by the National Bank for Agriculture and Rural Development (NABARD). The credit outlay has been increase by 32.87 per cent over the current financial year.

The lion’s share will go to agriculture and allied activities, which have been earmarked at Rs.2421.49 crore, accounting for 60.60 per cent of the annual credit plan. The credit flow to the sector will increase by 24.96 per cent over the current financial year. About 90 per cent of the advances to the sector, Rs.2,184.51 crore, will be given as short-term crop loans.

The non-farm sector will get Rs.468.40 crore, an increase of 60.28 per cent over the current year’s outlay. Small scale industries will be given Rs.412 crore under this category.

Other priority sector advances has been projected at Rs.1,105.91 crore, an increase of 42.26 per cent. Under this sector, Rs.209.61 crore will be advanced as educational loan to about 15,152 beneficiaries. Housing loans will be given to the tune of Rs.423.40 crore and small business Rs.143.68 crore. Professional and self employment loans will account for Rs.49.72 crore.

Of the total plan outlay, commercial and private banks will advance Rs.3736.99 crore, while cooperative banks and other financial institutions will contribute Rs.258.81 crore.

Releasing the plan, Jayashree Muralidharan, Collector, called upon the banks to reschedule agriculture loans extended during the current financial year in view of the severe distress faced by farmers of the district following the monsoon failure. “We have already passed a resolution asking commercial banks to reschedule agriculture loans at the previous bankers committee meeting. Please ensure that it is implemented in letter and spirit so that farmers are not pressurised to repay their loans immediately,” she said. She also called upon the bankers to be liberal in extending credit to farmers in the forthcoming financial year too.

Ms.Muralidharan requested banks to increase the quantum of educational loans. “Advance liberally to students, not just to those pursuing professional courses but also to students who are taking up other courses. Loans should also be given liberally to first-generation graduates,” she said.

She appealed to bankers to ensure prompt payment of wages to workers employed under the Mahatma Gandhi National Rural Employment Guarantee Scheme, who are now getting their wages through banking correspondents. “The wages should be disbursed within a week after release of funds by the district administration. Otherwise, the financial inclusion programme will fall flat,” she said.

K.Nagesh Bhatt, Chief Regional Manager, Indian Overseas Bank, P.Pankaj Kumar, Assistant General Manager, Reserve Bank of India, S.Suresh Kumar, Assistant General Manager, NABARD, and T.Ramadoss, Lead Bank Manager, spoke.