There is a difference in the data provided by the lead bank in the district and the State Level Bankers Committee (SLBC) about the Kisan Credit Card (KCC) scheme, said Prasad Rao, Assistant General Manager (AGM), the National Bank for Agriculture and Rural Development (NABARD), here on Tuesday.
He was speaking at the 146th District Level Review Committee (DLRC) meeting of the Dakshina Kannada district, which discussed the progress of the fourth quarter of 2011-12.
He said the numbers were diverging and that it was a serious matter, which required the attention of banks. As on March 31, according to lead bank returns, the amount of crop loans in 2011-12 was Rs. 566.34 crore. There were 40,600 farmer borrowers and each farmer got, on average, Rs. 1.40 lakh. But according to the SLBC data, the amount of crop loans was Rs. 534.71 crore, there are 67,525 farmer borrowers and each farmer gets Rs. 79,189. From January to March this year, there was a sudden surge in the amount borrowed.
“Why this off-take at a time when it is not required?” he said. Crop loans are issued to farmers overlooking scale of finance, which is a very serious issue.
Mr. Rao said that banks should visit their branches as there were discrepancies in crop loans. Banks would have to take stock of all branches and report to the lead bank.
He asked whether banks were ensuring that the amounts given were being utilised for the intended use. He said that subvention amounts must reach the beneficiary and asked whether banks followed norms of Reserve Bank of India (RBI) and NABARD while giving crop loans. “Is credit for agriculture going in the right direction?,” he said.
Another issue that was discussed was about monitoring of lead bank returns (LBR).
Of the 175 bank branches in the district’s four blocks (except Mangalore), 71 branches have not submitted a single return. These include 33 Vijaya Bank branches in Sullia, three of five Corporation Bank branches and two of 11 Vijaya Bank branches in Puttur. Bank branches in Bantwal had a “very bad” record and there are “chronic, perennial defaulters”, which have been defaulting despite being told about the issue every month in the last two years. “Submission rate is very low, (only) 50 to 60 per cent of branches (across various banks) give the LBR data,” he said.
Mr. Rao said that the amount for a group could be increased to Rs.95,000 and to Rs.6,000 for a single borrower. There are 3,633 groups with 51,000 members. The amount could be increased to Rs.15,000 to Rs.20,000 a person, and up to Rs.2.5 lakh per group. J.S.Shenoy, Deputy General Manager, Syndicate Bank, said that despite 2012 not being a good year with gross NPAs of the banking industry increasing to 2.5 per cent from 1.92 per cent in 2010-11, “our district has come out with flying colours. Deposits have grown by 28.24 per cent to Rs.21, 665 crore from Rs.16, 585 crore,” he said.
