The State Level Bankers’ Committee (SLBC) has constituted a sub-committee to augment and monitor the flow of credit to the agriculture sector and boost crop production.
The panel is headed by the secretary in the agriculture department and includes representatives of PSU banks having more than 50 branches, director (institutional finance), director (agriculture), director (horticulture), director (Apicol) and representatives from some private banks and Gramya banks.
In the first meeting of the sub-committee held recently, it was decided that every bank should dispose off the pending applications for agricultural loan at the earliest. The statement furnished by the banks should clearly mention the target and the achievements of the crop loans. The term loans excluding the short term loans and the non-agricultural advances made by the banks to self help groups (SHGs) shouldn’t be reported under the agriculture lending.
It was observed that though the banks are extending loans to the agriculture sector, the amount of the loans is not sufficient to take away the farmers from the clutches of the private village money lenders. In this context, the banks have been requested to ensure adequate flow of credit to the farmers basing on the need.
While the banks were requested to be lenient in dealing with the non-loanee farmers under the weather based crop insurance scheme (WBCIS), the sub-committee was of the view that the farmers should be sensitized to resort to crop insurance. Besides, pending proposals under the National Horticulture Mission (NHM) and other horticultural and agricultural loans should be disposed off immediately.
Sources said, though the banks as a whole achieved a target of 109 percent in financing agriculture sector by the end of September this year, some banks performance was very disappointing.
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While Syndicate Bank achieved only 25 percent of the credit target, the Central Bank of India attained 53.17 percent of the target. Similarly, Nilachal Gramya Bank could achieve only 34.14 percent of the target.
To boost the flow of credit to the Agro-Service Centres on a priority basis, it was decided that the state government would write to the district collectors to take necessary steps in this regard.