Boost credit flow to allied agri activities: FM Nirmala Sitharaman to RRBs

FM also directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region

Union Finance Minister Nirmala Sitharaman on Friday directed regional rural banks (RRBs) to increase their share in ground-level agriculture credit disbursement with special focus on allied agriculture activities like dairy, animal husbandry, fisheries.

 

Sitharaman chaired a meeting to review the performance of eight RRBs of the eastern region covering the four states of Bihar, Jharkhand, Odisha and West Bengal in Patna.

 

She also directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region.

 

“RRB review meeting focused on business performance, upgrading digital technology services, and fostering business growth in activities allied to agriculture and micro and small industry. Given the crucial role of RRBs in supporting the rural economy, the Union Finance Minister urged RRBs -- with the active support of their sponsor banks -- to increase credit disbursement under various government flagship schemes such as MUDRA, PM Vishwakarma, etc,” said a statement released by the finance ministry.

 

The Union minister also noted improvement in financial parameters of these RRBs.

 

Samrat Choudhary, Deputy Chief Minister of Bihar; M Nagaraju, Secretary, Department of Financial Services (DFS), chairpersons of RRBs and sponsor banks were also present during the meeting.

 

Additional Secretary, DFS, representatives of NABARD and SIDBI and senior officers of participating states also attended the meeting.

 

RRBs in the eastern region have posted consolidated profit of Rs 625 crore during FY24 against net loss of Rs 690 crore in FY23.

 

Consolidated Capital to Risk (Weighted) Assets Ratio (CRAR) has improved from 7.8 per cent in FY 22 to 9.4 per cent in FY24 and Gross Non-Performing Assets (GNPA) have improved from 25 per cent in FY22 to 15 per cent in FY24.

 

In another event held in the north Bihar town of Darbhanga, the FM asserted that Prime Minister Narendra Modi was of the view that women should steer economic growth in the country, which was on its way to becoming the third largest economy in the world.

 

Sitharaman said, “Earlier, PM Modi used to tell me that the Union budget should be women-centric. But now he says the budget should be one that visualises women in leadership roles.”

 

“We have brought in projects like 'Drone Didi'. Besides, cash assistance is being provided to women entrepreneurs through self-help groups. They are also being imparted with skills. Standing here, the birthplace of Goddess Sita, I proudly say that powered by the efforts of women, our economy shall leapfrog from the fifth spot to the third spot in about a year and a half," Sitharaman said.