The agricultural sector has secured the lion’s share of 71.63 per cent of the total annual credit plan outlay for 2013–14 in the district.
According to the credit plan prepared by the State Bank of India, which is the lead bank in the district, the outlay for the farm sector is Rs. 1,553 crore out of the total of Rs. 2,613 crore.
The outlay for the non-farm sector and other priority sectors, including tertiary and service sectors, is Rs. 615 crore.
While outlay for non-priority sector loans is Rs. 445 crore, priority sector loans have been fixed at Rs. 2,168 crore.
Of the Rs. 2,168-crore outlay for the priority sector, commercial banks have been given the responsibility of disbursing Rs. 1,267 crore (58 per cent), Krishna Grameen Bank, the only regional rural bank in the district, Rs. 716 crore (33 per cent) and cooperative sector banks Rs. 185 crore (9 per cent) loans to the agricultural sector.
The performance of banks in achieving targets fixed in the annual credit plans over the past three years has been poor, especially in extending assistance to the agricultural sector and disbursing priority sector loans.
In 2010–11, not even 50 per cent of the outlay of Rs. 892 crore was disbursed as farm loans. Similarly, in the same year, banks extended loans of Rs. 34 crore in the non-farm sector, against a target of Rs. 120 crore, and Rs. 97 crore in other priority sectors, against a target of Rs. 264 crore. The performance of banks in the district was slightly better in 2011–12. Of the total outlay of Rs. 1,513 crore fixed for the priority sector, banks disbursed only Rs. 1,261 crore. Only Rs. 749 crore of Rs. 749 crore was disbursed in the farm sector.
As per data available for 2012–13 up to December-end, banks disbursed Rs. 635 crore to the agricultural sector, against the total outlay of Rs. 1,167 crore. This figure is unlikely to increase as no major agricultural activity was taken up in the last three months of the financial year.