Allahabad Bank Set To Up Priority Lending By 18%

Allahabad Bank, which is in the process of implementation of its special business plan, is focusing on increasing its priority sector lending by 18 per cent to Rs 4566 crore this fiscal.

The bank routed 44.24 per cent of its net bank credit through priority sector lendings in 1999-2000. In absolute terms, the credit flow under this sector grew by Rs 1518 crore during the period.

Speaking to Business Standard, Allahabad Bank chairman cum managing director B Samal said, "We have initiated special measures for stepping up priority sector credit. Various schemes have been formulated primarily for agriculture credit, SSI financing, housing finance and financing the traders."

 

The bank's present participation under agricultural credit is 16.92 per cent against the mandatory 18 per cent. A plan for Rs 564 crore has been prepared for agricultural component.

The bank has formulated its green card scheme on the line of kisan card scheme. The present green card base of the bank is 37118 cards having an aggregate outlay of Rs 167.34 crore. "This year, the bank has taken up an ambitious plan to popularise the green card scheme by issuing additional 40,000 cards. The card has been extremely popular in the rural places," Samal said.

The bank has proposed to achieve a 20.32 per cent growth in SSI financing and the estimated SSI finance is expected to touch Rs 1072 crore during 2000-2001.

The bank has already developed a special housing finance model for financing within the priority sector. Allahabad Bank has set up 38 housing finance cells. A special scheme has been launched for financing the traders. The scheme has been liberalised for quick credit delivery. The formalities have been also been sufficiently streamlined and pursued.