The credit potential for other priority sectors in the state including educational loans, housing loans, loans to Self-Help Groups (SHGs) and transport sector, consumption loans and professional & self-employed people has been estimated at Rs 9566.97 crore in 2011-12.
The total amount worked out by National Bank for Agriculture and Rural Development (Nabard) includes a credit potential of Rs 1238.62 crore of loans to SHGs, Rs 1992.22 crore of housing loan, Rs 794.68 crore of educational loans, Rs 501.76 crore of consumption loans, Rs 2992.08 crore of loans to small businesses, Rs 3121.61 crore to transport operators and Rs 523.53 crore for professional & self-employed.
Taking into account all the segments under 'Other Priority Sectors (OPS)', the highest credit potential exists for Khurda district at Rs 1991.98 crore followed by Rs 1722.23 crore for Cuttack district and Rs 642.20 crore for Ganjam district.
It may be noted that the Ground Level Credit flow to the OPS stood at Rs 2745.65 crore, Rs 3383.44 crore and Rs 4264.92 crore in 2007-08, 2008-09 and 2009-10 respectively. The Ground Level Credit flow to the OPS has shown a year-on-year increase of 26 per cent.
The potential for development of OPS depends upon the generation of effective demand which in turn depends on the purchasing power of the people in general. Since the activities are demand-based, their potential is normally assessed on the basis of past trends.
These activities are vital for sustaining the development activities under other sectors of the economy. The disbursement of credit for these activities occupies an important and substantial position in credit scenario of the state.
With enhancement in standard of living of people, the demand for housing is on the rise.
Housing loan up to Rs five lakh is treated as priority sector advance for which refinance from Nabard is available.
Nabard has pointed out that the need for consumption loans among the weaker sections can mostly be considered as production loans in the long run.
The banks need to be sensitive to this type of credit requirement of the target group and sanction of consumption loans on increasing scale.
