Nabard projects 16% jump in priority sector lending potential in Bengal

The National Bank for Agriculture and Rural Development (Nabard) on Saturday projected a robust double-digit growth in priority sector lending potential of Rs 3.15 lakh crore in West Bengal for 2024-25.

Nabard's Chief General Manager Usha Ramesh unveiled the West Bengal state focus paper on Saturday alongside bankers, State Chief Secretary B P Gopalika, and other officials.

The paper projects a priority sector lending potential of Rs 3.15 lakh crore in Bengal in 2024-25, marking a 16 per cent increase from the previous fiscal year's figure of Rs 2.70 lakh crore.

In the first quarter of the current fiscal year, priority sector lending in the state amounted to Rs 86,531 crore, officials said.

The optimistic outlook is fuelled by strong performance of the MSME sector in the state, it said.

"We are taking several interventions and projects. But the projections made for 2024-25 can only be achieved through the coordinated approach of all stakeholders," Ramesh said.

She expressed confidence in the growing role of farmers' producer organisations in driving credit uptake within the priority sector.

According to the projections, the MSME sector is expected to lead the way with a 48.64 per cent share in the total credit growth outlook, followed by the agriculture sector, including infrastructure, at 36.71 per cent.

Meanwhile, State Level Bankers' Committee's annual credit plan has set a credit disbursal target of Rs 1.45 lakh crore to the MSME sector under priority sector lending.

As of September 2023, Rs 89,002 crore had been disbursed, representing 61 per cent of the target. However, progress in the agriculture sector has been slower, with only 34.21 per cent of the target achieved till September.

Addressing concerns about the declining credit share of cooperative banks and regional rural banks, Ramesh highlighted the need for capacity building and awareness initiatives to enhance their role in priority lending.

The Bengal government has offered land to banks to open more branches in rural areas to boost credit flow.