Banks in state achieve lending targets

Kisan Credit Cards worth Rs 3,527 crore issued

Banks in Gujarat have achieved the benchmarks set by Reserve Bank of India under the agriculture sector lending and priority sector lending. So far, the banks in the state have issued over 1.5 million Kisan Credit Cards (KCC) involving a sum of Rs 3, 527 crore.

At a meeting of the State Level Banks' Committee (SLBC) cum State Level Review Committee (SLRC) for Gujarat, held in Ahmedabad, bankers asked the state government to waive off stamp duty to be paid on agriculture loans on documents executed by guarantors, so that more and more farmers could be covered under the Kisan Credit Cards (KCC) scheme.

The bankers felt that there is a need for a better co-ordination between the state government, government agencies, banks and insurance companies to ensure that the credit flow to the agriculture sector double over the next three years.

Anil Khandelwal, chairman and managing director of Dena Bank, which is the convenor for the SLBC, stated that there was a need for re-organisation of rural and semi urban branches of banks to enable them to fulfill the objective of new policy guidelines.

Khandelwal also requested the state government to look into the issues such as tenant farmers and share croppers, where disbursing loans become difficult without documents.

He urged the government to issue certificates or documents so as to enable them to avail of bank credit. Dena Bank has decided to set up two Rural Development and Self Employment Training Institutes (RUDSETI) in Kutch and Mehsana in the current financial year.

Khandelwal asked the agriculture department to provide banks with a list of eligible farmers who have so far not been covered under the KCC scheme.

The Dena Bank CMD, while stating that training and skill upgradation play a major role in gainful employment of people, added that Dena Bank has decided to set up two Rural Development and Self Employment Training Institutes (RUDSETI) in Kutch and Mehsana in the current financial year.

State chief minister, Narendra Modi, said that the prestigious Sardar Sarovar Project, in which the government has invested heavily, will provide both drinking and irrigation water to thousands of farmers.

Stating that the project will revolutionise the rural economy, Modi said that this should be taken up as an opportunity by banks.

State industries minister, Anil Patel, asked the banks to cover SSI units under the Credit Guarantee Fund Trust for Small Industries, which envisages collateral free loans to manufacturing units which have a worth of up to Rs 25 lakh.

He also asked banks to provide financial assistance to SSIs under the Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSSTU) and to textiles under the Technology Upgradation Fund (TUF).

Several state government officials and ministers of departments concerned, those of the RBI and Nabard, apart from officials of various banks functioning in Gujarat were present for the meeting, held at the Ahmedabad Management Association.