Nabard's investment credit to state drops 29%

The disbursement of investment credit by the National Bank for Agriculture and Rural Development (Nabard) to Karnataka government has dropped 29.1 per cent to Rs 745 crore during 2009-10 compared to the previous year. The overall assistance from Nabard for the state during 2009-10 was Rs 3,472 crore, a growth of 15-16 per cent over the previous year.

Venkatesh Tagat, chief general manager, Nabard, today, said the drop in investment credit during the last fiscal was mainly due to excess liquidity with commercial banks and as a result the demand for refinance from Nabard was comparatively lesser. There was a delay on the part of the state government to draw funds from Nabard added to the slower growth of investment credit, he said.

For 2010-11, Nabard has estimated a potential for credit deployment to the tune of Rs 37,000 crore in Karnataka. This includes Rs 17,250 crore for crop loans, Rs 6,674 crore for term credit in agriculture and allied activities, besides Rs 13,340.5 crore for non-farm sector, agro and food processing sectors and other priority sector activities, he told reporters.