Nabard likely to hike 42% in credit flow target in Bengal

National Bank for Agriculture and Rural Development has envisaged almost 42 per cent rise in a credit flow target as priority sector lending in West Bengal at Rs 51710 crore for the financial year 2012-13. This is in spite of the fact that only 50 per cent of last year's target of Rs 36300 crore has been achieved so far this financial year.

The projections have been worked out to take care of the credit needs of all the farmers to be covered under the "West Bengal Farmers' Credit Mission" launched on 18 August 2011 by Mamata Banerjee, chief minister, West Bengal, according to a press release by Nabard.

Nabard will also provide concessional refinance at 7.5 per cent per annum to banks for financing

specified activities under agriculture in the eastern India including West Bengal. In addition, Nabard will provide refinance at 8 per cent per annum to banks for financing projects for creation of storage infrastructure for agricultural commodities.

In his last visit to West Bengal, RBI governor D Subbarao had expressed concerned over low credit deposit ratio in the state.

Amit Mitra, finance minister, West Bengal said that the government would form working groups to meet the credit enhancement under priority sector lending through Kisan Credit Cards (KCCs), among others.

Meanwhile, the state focus paper aims at suggesting an action plan to the government about various policies and operational measures necessary for creating a climate conducive for sustainable development of the agriculture and rural sector.

"Its success therefore hinges on effective coordination between all the partners in rural development, creating the required infrastructure in terms of greater outreach of the banking sector and strengthening the extension machinery," said a press release from Nabard.