Banks falter on credit flow to agri sector

Banks operating in the state continue to struggle in achieving lending target in different key sectors as they have managed to achieve barely 55 per cent of the Annual Credit Plan (ACP) for 2011-12 by December-end.

Latest data released by State Level Bankers’ Committee (SLBC) says of the total ACP of Rs 21,448.42 crore, the overall achievement has been Rs 11,759.08 crore. Total lending to the agriculture sector, one of the key drivers of the state's economy, has been especially lacklustre at 19 per cent of the target.

While crop loan has been healthy at 64 per cent, agriculture term loans and loans to allied sectors have been disappointing at 33 per cent and 19 per cent respectively. Banks were mandated to lend Rs 10,985.40 crore to the agriculture sector but the actual credit flow stood at Rs 5,710.82 crore by the end of December 2011.

 

In case of non-farm sectors (NFS), the banks’ achievement has been 62 per cent. Similarly, banks have achieved 57 per cent of the target for other priority sectors.

Scores of PSU lenders have been laggards in meeting total lending targets — Union Bank (23 per cent), Allahabad Bank (31 per cent), Andhra Bank (30 per cent), Central bank of India (10 per cent), Punjab & Sind Bank (15 per cent), State Bank of Bikaner & Jaipur (12 per cent), State Bank of Hyderabad (25 per cent), United Bank of India (33 per cent) and Syndicate Bank (36 per cent).

On the whole, PSU banks have met 57 per cent of the credit flow to all sectors till the end of December.

Among the private sector banks, ING Vysya Bank has been a poor performer, being able to meet only four per cent of the target.

District wise review of the performance of all banks reveals that Angul, Bhadrak, Cuttack, Dhenkanal, Gajapati, Malkangiri, Nayagarh, Nabarangpur, Nuapada, Rayagada, Sonepur and Sundergarh districts have achieved more than 50 per cent of the target. The performance under ACP has been the worse in Malkangiri district at 26 per cent followed by Gajapati at 37 per cent.

Agriculture advances stood at 27.46 per cent of the total advances. Likewise, MSME (micro, small and medium enterprises) advances at Rs 14,012.07 crore were at 20.17 per cent of the overall advances.

Banks have generated total business of Rs 2,04,012.45 crore including deposits of Rs 1,17,571.46 crore and advances worth Rs 86,440.99 crore. Priority sector advances at Rs 38,712.78 crore stood at 55.73 per cent of total advances.