Priority sector credit up 27% in Karnataka

Commercial banks in Karnataka have performed exceedingly well in all the banking parameters in Karnataka during fiscal 2006-07.

Under the priority sector the banks have disbursed Rs 22,000 crore, a growth of 26.75 per cent compared to the previous fiscal.

During the year, the banks were able to bring under the banking fold an additional 3.8 lakh new farmers in the state.

The areas the banks helped include crop production and investment credit to land development, minor irrigation, farm mechanisation, sericulture, dairy development, piggery and bee keeping.

Under the farm sector, the banks could disburse Rs 13,388 crore during the year. The ground level credit flow to agriculture has increased from Rs 4,749 crore in 2003-04 to Rs 13,388 crore in 2006-07, registering a three-fold growth within three years compared to Centre's stipulation of 100 per cent growth, according to C P Swarnkar, CMD of Syndicate Bank and convener of State Level Bankers' Committee (SLBC).

Addressing the 101st SLBC meeting here on Tuesday, he said, "The banking sector in the state has performed exceedingly well under all key parameters. I appeal to the fellow bankers to make an all out effort to achieve the set goal well on time during the present fiscal."

For the present fiscal 2007-08, the SLBC aims to achieve 22 per cent growth in credit disbursal at Rs 26,829 crore.