In a significant move, the Lead Bank for the first time has deviated from the conventional method in computing the credit plan for Tirupur district for 2013-14 by not sticking to the Nabard’ Potential Linked Credit Plan as base document.
Accordingly, the credit flow projected by Lead Bank for 2013-14 was pegged at Rs. 6,180 crore against the credit potential of Rs. 7,255 crore estimated by Nabard in its plan for 2013-14 released a month ago.
Banking sources said that if going by the orthodox norms, the annual credit plan outlay of the Lead Bank should be marginally more than the plan projections taking into account sundry requirements other than what mentioned in the plan document.
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But what made the Lead Bank think differently this time to take a ‘pragmatic stance’ over the ‘accepted route’ and considerably bring down the projections vis-à-vis plan figures, was the poor credit off-take at the ground level in the district during the first three quarters of the current fiscal.
Lead Bank sources said that credit flow in the first three quarters of 2012-13 had been only 78 per cent of the proportional annual credit plan targets for the period.
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“By the end of this fiscal, the situation is not going to change as only 75 per cent of the target of Rs. 6,104 crore set for the fiscal will be covered going by the moving projections,” said Lead Bank officials.
Considering this shortfall, the Lead Bank had arrived at the credit flow figures of Rs 6,180 crore. Of this, the estimated credit disbursement to small and medium enterprises (SME) sector stands at Rs. 3,760 crore, advances to agriculture and allied sector at Rs. 1,700 crore and the outlay for service sector at Rs. 700 crore.