CS urges banks to increase credit flow to agri sector

BHUBANESWAR: Odisha Chief Secretary Aditya Prasad Padhi on Thursday urged the banks to achieve a substantial increase in credit flow to the agricultural sector during 2016-17.

He also emphasised on the extension of banking and credit advance facility at all Panchayat headquarters by the opening of new brick and mortar branches or other service extension models.

The Chief Secretary said after releasing the State Focus Paper (SFP) on priority sector credit potential in Odisha during 2016-17 at the state credit seminar organised under the aegis of National Bank for Agriculture & Rural Development (NABARD) here.

Padhi emphasised that real financial inclusion cannot be achieved without having banking facilities at gram panchayat level.

He urged upon the banks to ensure 100% implementation of the subsidy and incentive based schemes announced by the government in agriculture and allied sectors.

Development Commissioner R. Balakrishnan said that the basic agenda of the government is faster poverty reduction which can be achieved by enhancing the household level income.

Government have put in place a number of progressive schemes and programmes the success of which need adequate and timely credit flow, he added.

He advised the banks to take up these schemes and programmes more actively in the coming year.

The SFP for 2016-17 presents a comprehensive picture of the credit potential estimated in various sectors of the rural economy. It reflects the Potential Credit Plans (PLP) prepared by NABARD for all districts in the state.

The paper has envisaged a projected priority sector credit potential of Rs. 58,882.39 crore for 2016-17 which is around 23.3% more than that of 2015-16. In the year 2015-16, the potential credit plan was around Rs.47, 756 crore.

It may be pertinent here to mention that in a recent notification RBI has now included eight sectors like agriculture, MSME, export credit, education, housing, renewable energy, social infrastructure and other allied sectors under priority sector lending for commercial banks.

The total credit potential under agriculture for 2016-17 is projected at Rs.32, 207.90 crore which is around 54.7% of the total priority sector credit.

The agriculture credit includes the farm credit (Rs.29, 710.95 cr.), agriculture infrastructure (Rs. 1,494.38 Cr) and ancillary activities ( Rs. 1,002. 57 crores).

Credit potential for MS&ME sector has been assessed at Rs.13,337.62 crore constituting 22.6 % of the total priority sector. The credit for sectors like export credit, education, housing, renewable energy, social infrastructure and others have been assessed at Rs. 13336.87 which is around 22.7% of the total credit potential under priority sector.