Naveen writes to Pranab on below par lending by banks

Not satisfied with the below par lending to agriculture and allied sectors by commercial banks operating in Orissa, the state Chief minister Naveen Patnaik has sought the intervention of Union finance minister Pranab Mukherjee on the matter.

Underscoring the key role played by agriculture in the state’s economy, Patnaik said for crop loans, the farmers are heavily dependent on cooperative banks as all commercial banks taken together provide only 30 per cent of the credit.

The commercial banks have not taken their task seriously, he said adding, in the last meeting of State Level Bankers’ committee (SLBC) held on November 15, achievement of commercial banks under crop loan and total advances to the priority sector as compared to the Annual Credit Plan (ACP) were reported at 59 per cent and 46 per cent respectively up to September this year.

“Credit support from commercial banks has become all the more important because of the recent floods which has affected the kharif crop of thousands of farmers. Timely and adequate credit will help farmers to raise a good Rabi crop”, he said in his letter to Mukherjee.

Patnaik has urged the Union finance minister to direct commercial banks to undertake a special drive to make available Kisan Credit Cards (KCC) to all farmers in Orissa, preferably by the end of December this year.

Thereafter, all the KCC holders may be provided with adequate credit support to meet their needs, Patnaik suggested.

These steps will go a long way forward in making a significant impact in Orissa which is one of the seven focus states in the eastern region for the second green revolution with support from Government of India, he opined.