Taking cues from the Potential Linked Credit Plan (PLCP) prepared by NABARD and the field level inputs from different stakeholders, the Lead Bank has projected a total credit flow of Rs. 7,917.65 crore in priority sector portfolio in Tirupur district for 2015-16 fiscal.
The projection shows 11.35 per cent growth when compared to the credit outlay targets of Rs. 7,110.18 crore set for priority sectors, covering agriculture, SMEs, housing and education among others, for the 2014-15 financial year.
Rationalising the increase in the projections, Lead District Manager V. Ganesan told The Hindu that the buoyancy seen in the credit disbursements both in the SME and the agriculture sectors during the current fiscal was expected to be carried over to the next fiscal.
“Credit flow in SMEs sector primarily grew this year because of the revival of fortunes in the knitwear exports and that in agriculture due to the increase in area coverage subsequent to the better rainfall when compared to the 2013-14 fiscal.
“With the capital requirement for diversification of garment production using man-made fibres set to take place in a big way, the credit flow will only be further increasing in the SME sector. Likewise, the momentum experienced in agriculture and allied activities too will be scooped over into 2015-16 fiscal,” he said.
However, Mr. Ganesan was of the opinion that the credit flow to other priority sectors (OPS), which cover educational and housing loans, among others, would not be showing any significant increase in 2015-16 fiscal.
The credit flow to SMEs had been estimated at Rs. 4,618.85 crore for 2015-16, an increase of Rs. 379.21 crore.
