 "Nabard raises credit potential in Gujarat by 16% for 2016-17")
On expectation of higher demand from agriculture sector, National Bank for Agriculture and Rural Development (Nabard) has increased the projection of potential credit by 16% to Rs 101,353 crore for the financial year 2016-17 in Gujarat.
In the state focus paper (SFP) 2016-17 brought out by Nabard, it was estimated that the state has a credit potential of Rs 1,01,353 crore or Rs 1.01 lakh crore — around 16% higher than projection of Rs 87,473 crore for 2015-16. Out of total projection, the bank is expecting credit potential of Rs 65,892 crore in next fiscal against Rs 56,862 crore for the current financial year.
“Taking view from state government and banks, it has come out that finance requirement from priority sector may increase. Hence, Nabard has estimated higher credit potential in the state for the year 2016-17," said a Nabard official.
Out of the credit potential envisaged for the year 2016-17, the share of agriculture credit, MSME and other priority sector has been estimated at Rs 65,892 crore, Rs 23,914 crore and Rs 11,547 crore, respectively.
Nabard called upon the banks to ensure adequate credit flow for the investment purposes in agriculture sector and achieve the estimated potential of Rs 44,777 crore under crop loans and Rs 21,115 crore for agricultural term loans.
The bank is also expecting huge rise in demand for renewable energy sector, which is aggressively promoted by state and central government. Nabard expects potential of Rs 223.28 crore lending in the sector which was projected just Rs 49.07 crore.
Nabard has so far pumped in around Rs 19,000 crore cumulatively as loans to the state government under Rural Infrastructure Development Fund (RIDF).