The National Bank for Agriculture and Rural development (Nabard), Kerala, in its state focus paper, has projected a potential of Rs 44,485 crore under institutional credit towards priority sector lending during 2009-10.
While Rs 13,509 crore has been earmarked under short-term credit for production and marketing (crop loans), Rs 3,455 crore has been set aside under investment credit for agriculture and allied activities, Rs 3,252 crore under non-farm sector activities, Rs.3,064 crore under agro and food processing sector and Rs 21,204 crore under other priority sectors, said Bhawar Puri, chief general manager, Nabard - Kerala.
Adding that though Kerala had achieved ‘Doubling of Credit’ in the agriculture sector in two years, he said the actual growth in agriculture production was not in consonance with the credit. “The growth in investment credit scenario in the agriculture sector in the state that would pave the way for capital formation in the state is not healthy. The varying level of NPAs of different banks in the state in same socio economic background is also a matter of concern to the bankers. Synergy of government plans with banks' credit plan is essential at block level to hasten the development process,” he added.
The total ground level credit achieved in the state for 2006-07 and 2007-08 was Rs 27,726 crore and Rs 32,722 crore respectively. The share of commercial banks in the total credit flow 2007-08 was the maximum at 62 per cent followed by the cooperative banks at 30 per cent and RRBs at 8 per cent.