J'khand's credit potential for FY26 priority sector lending at Rs 88,303 cr

The credit potential for the priority sector lending in Jharkhand has been projected at Rs 88,303 crore for the next fiscal, an increase of about 64 per cent from the current financial year, an official said on Saturday.

It was fixed at Rs 54,008.31 crore for the year 2024-25.

Priority sector lending (PSL) is a policy tool aimed at ensuring that key sectors crucial to the nation's development receive adequate financial support.

Mandated by the Reserve Bank of India (RBI), PSL obligates banks to allocate a specified proportion of their loans to sectors such as agriculture, education, housing, and small industries.

"The credit potential for the priority sector in the state has been projected at Rs 88303.77 crore for the year 2025-26, as against Rs 54,008.31 crore for the year 2024-25, showing an increase of 63.50 per cent," the official said.

Earlier, Jharkhand Finance Minister Radha Krishna Kishore launched the state Focus paper 2025-26 emphasising the need for sustainable agricultural practices, financial inclusion, and infrastructure development, in alignment with the vision for economic growth and social well-being.

According to S K Jagagirdar, Chief General Manager, NABARD Jharkhand Regional Office, thrust areas included diversification of crops by promoting pulses, oilseeds and higher value crops in rice fallows, integrated farming systems including organic to enhance sustainability and soil health and climate-resilient practices to combat climate vulnerability.

"NABARD is supporting farmers in Giridih, Lohardaga, Latehar, Gumla, and Khunti post the harvest of paddy," he said suggesting expansion of Kisan Credit Card (KCC) coverage, water harvesting, horticulture development and providing storage facilities among others.

He also suggested that the state government consider creating a credit guarantee corpus to be managed by SPV (Special Purpose Vehicle) through which credit guarantee coverage can be provided to women farmers and entrepreneurs while availing loans from financial institutions up to a predetermined limit.