Priority sector credit disbursals rise 22% in Karnataka in FY14

Banks have achieved 30% growth in credit disbursal under agriculture sector at Rs 45,753 cr

Disbursement of priority sector credit has increased 22.2 per cent to Rs 73,993 crore during the fiscal ended March 2014 as against Rs 60,559 crore in the previous year in Karnataka.

Banks in the state achieved a 30 per cent growth in credit disbursals under the agriculture sector at Rs 45,753 crore as against Rs 35,173 core in the previous year.

Giving details of the achievement of the banking sector under the annual credit plan 2013-14, chairman of State -Level Bankers’ Committee (SLBC) Sudhir Kumar Jain said the banks had disbursed Rs 31,911 crore under crop loans, showing a growth of 43.3 per cent over the previous year’s disbursal of Rs 22,274 crore.

The National Bank for Agriculture and Rural Development (Nabard) has projected Rs 85,725 crore under the priority sector credit for 2014-15, a growth of 26 per cent over the previous year. The share of agriculture credit is Rs 57,236 crore comprising Rs 39,246 crore crop loan and Rs 17,990 crore investment credit. An amount of Rs 8,411 crore and Rs 20,077 crore has been earmarked towards micro small medium enterprises (MSME) and other priority sectors, respectively.

However, a total projection of Rs 89,821 crore was arrived by the SLBC under the priority sector credit, which also includes credit plan of metro areas. Hence, the plan prepared by it is above the projection made by Nabard in their state focus paper. As compared with 2013-14 disbursements, a growth rate of 23 per cent, 30 per cent, 25.11 per cent and 5 per cent has been envisaged under crop loan, agriculture term loan, MSE credit & tertiary credit respectively. The SLBC has also allocated bank-wise targets, Jain said.

“Under the first phase implementation of Financial Inclusion Plan, all the identified 3,395 unbanked villages have been provided with banking outlets. Of this, brick & mortar branches have been opened in 466 villages accounting for 13.73 per cent. I request the banks to ensure opening of brick & mortar branches in at least 15 per cent of villages,” Jain said.

In tune with the RBI guidelines on the road map for providing banking services in villages with population below 2,000, the banks have been allocated 23,126 villages. The banks have provided banking outlets in 15,659 villages up to March 2014 as against the last year’s target of 13,684 villages, thereby recording 114.43 per cent achievement, he informed the 127th meeting of SLBC, here today.

Under the Electronic Benefit Transfer (EBT) scheme, which is being implemented in seven districts of Karnataka on a pilot basis, Jain said the banks had opened 758,591 accounts under the National Rural Employment Guarantee Scheme (NREGS). The banks had also issued 7,50,199 cards and disbursed over Rs 11 crore. The average amount per transaction was Rs 1,322, he said.

Under the Social Security Pension Scheme, banks had opened 465,545 accounts, issued 450,087 cards and disbursed Rs 151 crore. The average amount per transaction worked out to Rs 511, he added.

The state government has constituted a sub-divisional level coordination committee under the chairmanship of assistant commissioner to expedite the process on a mission mode.