The state government on Tuesday indicated that many of the financial indicators for Karnataka have been showing a deterioration over the past two-three years.
Speaking of the figures that have showing a deterioration over the said period, Karnataka chief secretary S V Ranganath said here in Bangalore on Tuesday. that the credit-deposit ratio had fallen from 75.3 per cent in 2009 to 74.6 per cent on Tuesday. The same is the case with indicators like priority sector lending and the lending to people belonging to scheduled castes and scheduled tribes.
On the priority sector lending, Ranganath added that it has fallen from 46.2 per cent to 40.34 per cent. Meanwhile, loans to SCs and STs too have fallen from 19 per cent to 18.3 per cent. It is worrisome trend he said, adding that it is the lowest in four years. The target for lending to the priority sector too has fallen, having fallen from Rs 55,231 crore during FY2011-12 to Rs 48,612 crore for FY2012-13. With financial inclusion being important, this would not help with the efforts for increasing financial inclusion.
Meanwhile, he also said that while there had been talks of introduction of smart cards to help in financial inclusion, that banks have been moving away from smart cards. “This has to be addressed,” the chief secretary said.
Meanwhile, to enable farmers to obtain hassle-free agriculture credit and to avoid tampering of land records, the state government has computerised agriculture land records under the Bhoomi Project. The scheme has been under implementation in toto in four select districts — Tumkur, Kolar, Mandya and Mysore. All banks have been asked to extend the scheme to the entire state by May 31, 2012.
On the implementation of the Revised Annual Credit Plan 2011-12, the chairman, SLBC, said that banks have disbursed Rs 55,231 crore under Priority Sector Credit during 2011-12 against the revised annual target of Rs 46,027 crore. Under the agriculture sector lending, banks have disbursed Rs 28,608 crore, of which the share of crop production loan was Rs 19,135 crore.
Under secondary and tertiary sectors, disbursement was to the tune of Rs 11,930 crore and Rs 14,621 crore respectively. Regarding the Annual Credit Plan 2012-13, he said that a target of Rs 48,612 crore has been fixed under the priority sector credit.
