Banks asked to streamline credit delivery

Having pegged the Annual Credit Plan (ACP) for 2010-11 at Rs 5,385 crore, the district administration is making efforts to make disbursements to agriculture and other constituents of priority sector to desired extent.

A sum of nearly Rs 2,293 crore is to be disbursed as crop loans and Rs 776 Agriculture Term Loans (ATL), for which necessary steps are being taken by the banks and Agriculture Department.

The poor performance in extending loans during 2009 Kharif is being kept in mind in order to achieve the target well in advance. It was targeted to give loans amounting to Rs 1,375 crore but the actual disbursement was only Rs 500 crore.

The Agriculture Department was asked to follow up the matter with banks so that the targets are achieved and credit delivery is broad - based among all banks across the district.

It may be noted that the disbursement of Rs 500 crore towards crop loans in Kharif 2009 was done by a few bank branches than was planned.

This is sought to be rectified in the coming months whatever difficulties banks might have, as they are supposed to adhere to the guidelines of State Level Bankers' Committee.

The 2010-11 ACP was prepared at the branch level in a realistic way taking into consideration the major crops grown and other activities of ginning and spinning mills, cold storages and agro-processing units. The onus of lending to the full extent now lies on banks, which tend to show one excuse or the other for their failure to keep up their commitments. A suitable mechanism is to be devised to meet the credit requirements of tenant farmers and share croppers most of whom are left without access to bank credit.

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