SBI to recruit specialists for agri credit

State Bank of India (SBI) has decided to strengthen its agriculture sector financing by recruiting over 500 graduates this year with specialisations in different subjects of agriculture.

This is an attempt by the largest public sector bank in the country to help farmers avail loans for the most profitable purpose and thus increase agriculture credit.

"SBI will appoint over 500 agriculture graduates and specialists who will be posted in different branches and agriculture finance cells in the country. Agricultural financing has two aspects - financing and the technical part. While we have qualified banking personnel for financing, there is a need for employees who will guide the loan recipients on the technical aspects of agriculture and how to maximise benefits," said SBI managing director Ashok Kini.

"There are several fields like horticulture, orchard farming and other branches of agriculture where bankers might not have the expertise to guide farmers correctly. Having specialists in branches of agriculture will not only help farmers utilise the loans more efficiently but will also enhance the business of the bank," he added.

Within the priority sector, SBI plans to increase lending to agriculture by 133 per cent to Rs 2,800 crore in 2004-05. This is in tune the central government's policy to provide a boost to the agriculture sector. The bank plans to lend Rs 11,000 crore to the priority sector in the current financial year as compared with Rs 7,700 crore in the previous year.

Priority sector lending accounts for 39 per cent of SBI's net bank credit of Rs 1,32,000 crore.

The target for priority sector lending for banks is pegged at 40 per cent of their net bank credit.