The potential-linked credit plan, prepared by NABARD (National Bank for Agriculture and Rural Development) has projected the credit potential of ₹ 9,820.62 crore during 2020 – 2021, an 8 % increase over the previous plan.
District Revenue Officer B. Muthuramalingam released the plan, which forms the basis for finalisation of the annual credit plan for banks in the district. Chief Regional Manager, IOB, D. Ramanathan, received it.
The PLP is prepared based on gross cropped area, scale of finance and annual credit plan achievement. Credit requirement of short-term crop loan, the predominant sector, is estimated at ₹ 5,488.71 crore and term loan for allied sectors at ₹ 1,536.54 crore. The estimate for medium, small and medium enterprise (MSME) sector stood at ₹ 621.99crore.
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As per revised guidelines on priority sector lending by Reserve Bank of India, credit potential ensures significant allocation for agriculture infrastructure (₹ 361.70 crore), ancillary activities like food and agro processing sector (₹ 197.83 crore), export credit (₹ 152.00 crore), education (₹ 487.69 crore), housing (₹ 251.25 crore), renewable energy (₹ 69.75 crore) and social infrastructure (₹ 64.16 crore) and loans to self-help groups (₹ 589 crore).
The DRO asked the banks to allocate more credit to agriculture sector since there is a good potential towards animal husbandry and micro irrigation system in the district.