The annual credit plan for Tiruchi district envisages a credit flow of Rs.1,643.01 crore to the priority sector during 2010-11, an increase of 16.28 per cent over 2009-10.
The credit plan, launched by Collector T.Soundiah at the bankers committee meeting here on Wednesday, shows an increase in priority sector advances by Rs.230.02 crore over 2009-10.
About 58 per cent of the total priority sector advances for 2010-11, amounting to Rs.942.94 crore, has been earmarked for the agriculture sector. The non-farm sector has been allocated Rs.192.06 crore, accounting for 11.69 per cent of the priority sector advances. Other priority sector advances has been projected at Rs.508.01 crore, constituting 30.92 per cent of the outlay.
The allocation for the agriculture sector has been increased by 10.83 per cent (Rs.92.16 crore in absolute terms) over 2009-10 and for the non-farm sector by 13.57 per cent (Rs.22.96 crore). The allocation for other priority sector has been increased by 22.61 per cent (Rs.114.90 crore) over 2009-10.
In agriculture sector allocation, a major share of the credit flow, amounting to Rs.677.86 crore, would go towards short term crop loans. Farm mechanisation would get about Rs.53.48 crore and dairy development Rs.54.43 crore. Minor irrigation would get a credit flow of Rs.26.38 crore and advances to self help groups would account for Rs.85.10 crore. Under other priority sector advances, Rs.90.12 crore has been set aside for educational loans to about 7,837 beneficiaries, while Rs.238.28 crore would go towards housing loans for 4,255 beneficiaries.
Giving an overview of the performance of the banks for the current year, V.N.S.Lakshmi Narayanan, Chief Regional Manager, Indian Overseas Bank, the lead bank for the district, said credit-deposit ratio of the banks in the district stood at 70.42 per cent. Deposits of the banks in the district stood at Rs.8,994 crore, while advances was around Rs.6,334 crore as on December 2009.
During 2009-10, banks in the district have advanced Rs.1040.68 crore till December against the annual credit plan target of Rs.1,257.42 crore for the period, representing a 120.82 per cent achievement. Of this, Rs.788.39 crore has been advanced to the agriculture sector, Rs.115.20 crore to the non-farm sector and Rs.353.83 crore to other priority sector, he said.
Banks have achieved the target by giving revolving funds to 1,500 SHGs in the district and economic credit has been sanctioned to the tune of Rs.6.23 crore to 152 groups.
The total advances to SHGs in the district during the current financial year stood at Rs.67.38 crore and the target has been fully achieved, he said.
Solomon Paul Jayaraj, Assistant General Manager, National Bank for Agriculture and Rural Development, P.Shanmugham, Project Officer, Mahalir Thittam, and T.Ramadoss, Lead Bank Manager, spoke.