UP rural credit projected at Rs 1 lakh cr during FY15

The rural credit potential would now be 20% higher than the corresponding figure for the current financial year, standing at Rs 1,01,315 cr

The rural sector credit potential for commercial banks in Uttar Pradesh has been pegged at almost Rs 1,22,000 crore for 2014-15. This means more credit flow is projected in the state rural economy, comprising farming, rural infrastructure and allied activities.

The rural credit potential would now be 20 per cent higher than the corresponding figure for the current financial year, standing at Rs 1,01,315 crore. During 2011-12 and 2012-13, the size of the annual credit plan prepared by National Bank for Agriculture and Rural Development (NABARD) was Rs 64,531 crore and Rs 79,988 crore, respectively. This shows there has been a steady and marked increase in credit flow to the state rural sector.

Of the annual credit potential of Rs 1,21,618 crore, Rs 88,353 crore is for agriculture alone, including Rs 71,515 crore for crop loan. It also comprised Rs 15,455 crore under non-farm sector and Rs 17,808 crore for other priority sectors.

The annual credit plan for the state was unveiled by state Agriculture Production Commissioner (APC) Alok Ranjan recently. These estimates are incorporated in the State Focus Paper, which aims at increasing productivity, private capital formation in agriculture, removal of gaps in infrastructure, inclusive growth and financial inclusion.

The Plan paper is intended to facilitate integration of the state's credit plan with the development plan and consider appropriate sectoral allocation in state budget.

Meanwhile, NABARD chief general manager K K Gupta extended greater support of the state government and banks to the rural sector. He suggested that the state agriculture policy be reviewed, while framing policies on horticulture and food processing, warehousing, agri export and other related segments. He has also recommended for a separate agriculture budget as an integral part of the annual budget.