Credit outgo exceeds target

Rs. 5,566 crore disbursed against a target of Rs. 5,350 crore

Credit disbursement to SMEs, agriculture and other priority sectors has exceeded the credit plan targets for the first three quarters of the financial year in Tirupur district.

The figures on credit extension to priority sectors, covering agriculture, SMEs, housing and education among others, for the first three quarters, which was obtained by The Hindu , indicated that Rs. 5,566 crore had been disbursed under priority sectors portfolio in total against the proportional target of Rs. 5,350 crore set for the period.

The overall annual credit disbursement target for 2014-15 fiscal in Tirupur district was pegged at Rs. 7,110 crore.

Segment wise, Rs. 1,722 crore was given away as advances to agriculture activities against the proportional target of Rs. 1,625 crore in the first three quarters of the fiscal.

Likewise, Rs. 3,285 crore was disbursed to SMEs (small and medium enterprises) against the target of Rs. 3,186 crore and Rs. 559 crore towards other priority sectors (ie education, housing etc) vis-à-vis the target of Rs. 539 crore, for the period.

When contacted, Lead District Manager V. Ganesan told

The Hindu that the buoyancy in the credit flow could be attributed to the increase in demand for working capital in the predominant textile business in the SME sector because of healthy global trends, increase in the area coverage in agriculture and revival of interest in housing projects.

According to banking sources, the prevailing higher slabs of interest did not prove to be much a hindrance for seeking credit this fiscal.

“Possibly, the option for capital to carry out capacity expansion in factories to meet the global demands in apparel business could have outweighed the scepticism which many had when it comes to taking loans at higher interest rates,” banking officials said.

Lead Bank sources sounded optimistic that the annual credit targets could be easily attained if the present trend continues.