Farm credit prop for banks

COMMENT/ P S Shenoy, Chairman & MD, Bank of Baroda

The Budget is in line with the broader objectives of the new government's common minimum programme.

It is an attempt to maintain the overall pace of the economic activity through higher public investment in infrastructure, agriculture and social sectors with a special focus on primary education and employment generation.

For the banking sector, the special emphasis on agricultural credit and micro finance, irrigation programmes, revamping of co-operative banks and RRBs are particularly significant.

A thrust on improving supportive agricultural infrastructure like irrigation will go a long way in assuring decent recovery of agricultural loans.

The plan to amend Securitisation and DRT Acts to safeguard the creditors' right needs to be implemented speedily as it would give a significant impetus to banks to ensure sustained recovery of their bad loans.