UP agri credit potential pegged at Rs 33,800 cr

The aggregate credit potential under agriculture sector in Uttar Pradesh has been projected at over Rs 33,800 crore for 2010-11.

This would mean a growth rate of around 27 per cent over 2009-10, when the aggregate credit is likely to stand around Rs 26,600 crore.

These projections have been made in the State Focus Paper for 2010-11 prepared by the National Bank for Agriculture and Rural Development (Nabard), the central refinance agency.

State Focus Paper provides bankers with information relating to opportunities available for making further investment. It also gives indications to government regarding policy measures for sustainable development of agriculture.

Meanwhile, during the current year, Nabard has provided a record loan assistance aggregating Rs 4,860 crore to the UP government and banks vis-à-vis Rs 3,465 crore during 2008-09 – a growth of about 40 per cent.

“The credit support to UP is one of the largest assistances by Nabard to any other state government,” Nabard chief general manager D P Mishra said here.

He maintained the Non Performing Assets (NPA) levels were zero for the Bank in UP.

Nabard runs probably the world’s largest micro finance programme in the world through its Self Help Group Bank linkage programme aimed at financial inclusion of vulnerable rural women.

The programme not only helps provide credit to these Groups, it also aims at converting them into small entrepreneurs for rural prosperity.