Odisha banks miss agri credit target for third year in a row

Commercial banks in Odisha have fallen short of the credit target to the agriculture sector for the third straight year in 2012-13.

Lending by the banks to the agriculture sector that supports over two-thirds of the state's population, stood at Rs 10,454.15 crore in last fiscal, an achievement of 74% of the target of Rs 1,41,78.86 crore.

Data released by the State Level Bankers' Committee (SLBC) showed the commercial banks have consistently missed the agri lending targets for three consecutive years. In 2010-11, achievement was 74% while in 2011-12, it fell further to 67%.

During 2012-13, achievement by commercial banks in crop loan disbursements was 86% of the target while for agri term loans, it was lower at 65%. The most tepid performance by the banks was seen in the allied sector where actual credit flow was only 23% of the stipulated target.

Agriculture advances as a proportion of total advances, though, was 30.93% of total advances, sufficiently higher than the Reserve Bank of India's (RBI) norm of 18%.

District wise scrutiny shows Gajapati (46%), Kalahandi (47%), Malkangiri (23%), Nayagarh (51%), Nabarangpur (48%) Sundergarh (50%) and Angul (51%) have disappointing figures on agriculture credit.

Bank wise, achievement by public sector lenders- Bank of Baroda (28%), Central Bank of India (18%) and Syndicate Bank (31%) was lacklustre. Achievement by biggest public sector lender- State Bank of India- (SBI) in agriculture lending was only 44%.