Credit plan for state up at 7.4 per cent in FY '10

The state annual credit plan (ACP) for 2009-10 has been approved by the state level bankers’ committee (SLBC). The ACP envisages a growth of 7.4 per cent in the total credit to various sectors of the economy at Rs 27,359.01 crore for the year compared to the previous fiscal.

All member banks have been directed to take steps to increase the flow of credit to the agricultural sector during 2009-10 with emphasis on investment credit which will stimulate capital formation under agriculture sector.

Under the primary sector, the proposed credit has been pegged at Rs 17,597.14 crore. Of this about 66 per cent has been earmarked as crop loan. Allocation for secondary sector has been pegged at Rs 3,067.88 crore and Rs 6,693.66 crore for tertiary sector.

 

The total disbursements as of March 2009 under ACP 2008-09 was Rs 25,463.09 crore compared to Rs 23,726.15 crore during the previous year.

According to the data compiled by SLBC, the aggregate deposits of commercial banks, including RRBs, stood at Rs 2.06 lakh crore as of March 2009, registering a growth of 25.9 per cent over the previous year. The deposits of regional rural banks stood at Rs 9,500 crore, accounting for 4.6 per cent of the total deposits.

The total outstanding advances of banks including RRBs as of March 2009 were Rs 155,409 crore, a growth of 18.18 per cent over the previous year. The advances by the RRBs were Rs 8,018.18 crore, making up 5.16 per cent of the total advances of scheduled commercial banks.

The credit to deposit ratio as of March 2009 was 75.30 per cent vis-à-vis 80.22 per cent March 2008, a decline of 4.92 per cent. However, the CD ratio is more than the national average of 74.80 per cent. The CD ratio of RRBs in rural areas stood at 129.48 per cent, indicating an increased flow of credit to agriculture and other rural sectors.

The outstanding level of total priority sector advances of banks, including RRBs, stood at Rs 71,810.15 crore as of March 2009 as against Rs 58,002.27 crore in March 2008. The percentage of priority sector advances of scheduled commercial banks works out to 46.21 per cent surpassing the level stipulated by the RBI i.e. 40 per cent.

The total agricultural advances were to the tune of Rs 29,195.74 crore constituting 18.79 per cent of the total advances of banks as of March 2009. Direct advances to agriculture stood at Rs 23,275.94 crore and indirect advances to agriculture was Rs 5,919.80 crore constituting 14.99 per cent and 3.80 per cent of total advances respectively.

The outstanding level of education loans stood at Rs 2,519.57 crore covering about 107,634 accounts. The banks have disbursed loans to 18,896 students amounting to Rs 174.34 crore during the year.