Credit plans should not be annual ritual exercise by banks: Bansal

April 27, 2015 05:23 pm | Updated 05:23 pm IST - KALABURAGI

Kalaburagi Deputy Commissioner Vipul Bansal said that the Annual Credit Plans of the banks should not become a mere a ritual and bankers should make honest efforts to achieve financial targets while helping the farming sector to get the due benefits.

Launching the Distrct Annual Credit Plan 2015-16 in Kalaburagi on Monday, Mr. Bansal said that banks which deduct premiums for crop insurance extended to the farmers seldom paid back farmers the insurance amount in the event of failure of the crops for which the insurance premium has been paid.

The banks responsibility does not end at the point of deducting the premium but it should help the farmers to get back the benefit from the insurance companies. “This year three taluks in the district have been declared as drought-hit and the farmers throughout the district have suffered crop loss. The banks should help such farmers”.

The State Bank of India, which is the leading bank in Kalaburagi has prepared an ambitious credit plan of Rs. 5,111 crore which included Rs. 4,275 crore Priority Sector lending and Rs. 836 crore non-priority sector lending. The increase in the targets fixed for priority sector lending for the year 2015-16 was a whooping 54 per cent when compared to the previous year’s target.

Under the priority sector major chunk of 64 per cent of the targets amounting to Rs. 2,727 crore have been fixed for the Commercial Banks, followed by Rs. 1,249 crore targets set for the Pragati Krishna Grameen Bank of Rs. 1,249 crore which constitutes to 29 per cent. The remaining amount is fixed for the cooperative banks.

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