PSL by banks in Maharashtra to double in 2015-16, says Nabard

The National Bank for Agriculture and Rural Development today estimated that the quantum of priority sector lending by banks will almost double to Rs 1.80 lakh crore in Maharashtra in the next fiscal.
The same priority sector lending (PSL) estimate for FY15 has been pegged at Rs 91,234.50 crore, it said, adding that the spike in the number is due to inclusion of Mumbai city and suburbs in the estimation.
It can be noted that there has been increased thrust on infrastructure development in the cities, including the affordable housing units which qualifies as PSL.
Under PSL, banks are mandated to lend around 40 per cent of their total yearly lending to emancipate deserving sections or sectors like agriculture, farm equipment etc.

In the status paper released today, National Bank for Agriculture and Rural Development (Nabard) said the agriculture sector will constitute for a credit of Rs 65,512 crore, rural non-farm sector at Rs 62,142 crore and other priority sector at Rs 52,378 crore in FY16.
The projections of the state focus paper have been arrived at after aggregating all the potential linked plans (PLPs) of all the districts in the state, it said.

The state credit paper was released by Chief Minister Devendra Fadnavis at the state credit seminar held at the Sahyadi Guest House today.
Gross state domestic product (GSDP) of Maharashtra at current prices for 2012-13 is estimated at Rs 13,23,768 crore, Nabard said.

SIndustrial and services sectors put together presently contribute about 89.1 per cent of the state's domestic product. The agriculture and allied activities sector contributes just 10.9 per cent of the state's income though about 55 per cent of its population is dependent on income from this sector, the paper said.
The state has a widespread banking network. As on 31 March 2014, there were 13,844 branches of scheduled commercial banks, regional rural banks and cooperatives in the state.
Out of this, 5,831 were rural, 2,658 were semi-urban and 5,355 were urban branches, it said.
The aggregate deposits of commercial banks, RRBs and cooperative banks in the state as on 31 March 2014 stood at Rs 15,64,955 crore, while the total advances outstanding was Rs 14,85,430 crore, indicating a credit deposit (C/D) ratio of 94.9 percent, the paper said.

The credit disbursed by banks for short term, medium term and long term loan under priority sector during the year 2013-14 stood at Rs 1,30,619.44 crore as against a target (revised) of Rs 1,00,000 crore thus recording an achievement of 130 per cent. The achievements under non farm sector was high (345 per cent) mainly on account of inclusion of two Mumbai districts under the state credit plan, the paper said.
In FY14, the achievements under agriculture sector were 79 per cent whereas the same under other priority sector were 86 per cent. The disbursement under crop loans were 90 per cent and agriculture term loans were 54 per cent, the paper said.

During the year 2013-14, 61,520 Self Help Groups (SHGs) were savings linked and 61,264 SHGs were credit linked. 8,260 SHGs were provided repeat finance during the year.
Cumulatively, 6,37,089 SHGs have been credit linked since the inception of programme in Maharashtra. As on 31 March 2014, 2.04 lakh SHGs had outstanding loan of Rs 1,320 crore from various banks, the paper said.