Along with expressing dissatisfaction with the achievement of banks in clocking loan and advances to priority sector, the National Bank for Agriculture and Rural Development (NABARD), has projected credit potential of Rs 15293.60 crore for the Financial Year 2014-15.
The potential includes Rs 6,974 crore for agriculture and allied sector, Rs 6,319 crore for non-farm sector/MSME (including agro-processing) and Rs 2,000 crore for Other Priority Sector like education, housing loans etc. The credit projection under agriculture includes Rs 5,137 crore for short-term agricultural production which is mostly given in the form of Kisan Credit Cards.
While the achievement level of banks under non-priority sectors has been in the range of more than 90 per cent and over 150 per cent, it has remained relatively lower hovering between 68 per cent and 89 per cent in respect of priority sector during 2013-14. Except for the year 2012-13, the credit disbursement under priority sector has not shown any significant growth. The bank organised a State Credit Seminar on 11 February, 2014 to present the State Focus Paper.
The credit projection has been estimated through an intensive exercise of preparing potential linked credit plans for all the 24 districts through a consultative process, which has been aggregated to arrive at the total projection for the State.
Share of agriculture advances in total loan remained just 13.33 per cent as March, 2013 or up from 12.99 per cent from a year ago. It is against the national bench mark set at 18 per cent.
The Focus Paper also put light on non-performing assets which has growth up to Rs 2,766.88 crore of the banks. Agriculture loan shares Rs 574.73 crore of this while MSE tops the list with Rs 1,192.31 crore. It also outlined some potential areas where the funds should be spent during 2014-15 in Jharkhand.
Work of electrification of villages, development of infrastructure like cold storages, rural godowns, warehouses, market yards besides hospital and educational institutions should be done during the year. For farming sector, it suggests irrigation facilities in the form of check dams, ponds and dams and also adoption of modern techniques like sprinkler and drip and better management of soil health.
Speaking on the occasion Sudhir Prasad, Additional Chief Secretary and Development Commissioner emphasised on formation of credit products relating to minor forest produce. He also stressed on expediting DRI loan for which 4 per cent interest is charged and simplification of KCC loaning system. “Financing of RRBs should be more for primary sector for which they were set up and the involvement of private sector banks in priority sector lending should be ensured by RBI and SlBC,” added Sudhir Prasad.
KC Panda, Chief General Manager, NABARD, Jharkhand called for a well-thought out strategy for commercialisation of agriculture with supplementary income from allied activities which can bring greater viability to small farm as an economic enterprise and at the same time generate additional employment for the farm family. He requested that SHG Bank linkage programme may be seen not only as a most suited livelihood Promotion Programme for the State, but also as a significant Women Empowerment Programme. He also declared that a seed production programme would be implemented in Jharkhand on pilot basis covering 2500 acres. Saurabh Sinha, General Manager, RBI expressed concern over updation of land records and cut-off date of insurance which hampers continuous credit through KCC.