Post News Network
Bhubaneswar, Jan 28: The National Bank for Agriculture and Rural Development (NABARD) has projected overall credit potential of Orissa under priority sector at Rs 58,882.39 crore for the year 2016-17, which is higher by 23 per cent over the last financial year. This was part of the State Focus Paper 2016-17 which was released by Chief Secretary A P Padhi at the State Credit Seminar held here Thursday.
“The aggregation of district wise PLPs (potential linked credit plans) for 2016-17 is estimated to be 23 per cent higher than the last financial year. The credit potential for next financial year (2016-17) is pegged at Rs 58,882.39 crore as compared with Rs 47,756.44 crore set for this fiscal year,” Chief General Manager of NABARD, S K Kale said at the launch of State Focus Paper for 2016-17.
He also said the credit potential in agriculture sector constitutes 54.7 per cent of the total priority sector lending plan. Out of Rs 32,207.90 crore of lending to agriculture, Rs 29,710.95 crore is projected under farm credit comprising both crop loans and term loans.
“Credit potential under agriculture infrastructure and ancillary activities has been estimated at Rs 1,494.38 crore and Rs 1,002.57 crore respectively,” he said adding credit to MSME sector has been estimated to be at Rs 13,337.62 crore. Other sectors like export credit, education, housing, renewable energy,and social infrastructure have 22.7 per cent share in the plan.
Addressing the gathering, Chief Secretary, Aditya Prasad Padhi said while 70 per cent of agriculture credit is coming from co-operative banks, the share of commercial banks is steadily declining in this segment. He also said that the credit to deposit ratio (CD) is not giving a real picture of loan growth and should be replaced with credit to GSDP ratio.
“In Kandhamal district, credit to GSDP ratio stands at as low as 2 per cent. So, we have to find ways to increase financing so that the state can grow,” Padhi said adding despite of various incentives, many banks are insisting for 100 per cent collateral, which is hindering the credit growth. He also said banks have only achieved 10 per cent of the total target for opening branches at unbanked GPs in the state. “Annual expenditure of a brick and mortar branch in unbanked GPs is much more than the income of in those areas. However, we are encouraging banking correspondent model to provide banking services in those regions,” Chief General Manager of State Bank India, B V G Reddy said.