Karnataka Bank's agri credit plan at Rs 350 cr

Finalising the Agri-Credit Plan, chairman and CEO of Karnataka Bank Ltd, Ananthakrishna said there is a need to enlarge the sphere of agricultural activities financed by the bank.

The plan envisages a fresh deployment of Rs 350 crore towards agricultural finance for 2005-06. The 30 per cent annual growth in agricultural credit flow envisaged by the Union finance minister to double the agri-credit in the country by 2007 should be achieved, he added.

He was inaugurating the 'Agri-Business Conference-2005' of the bank, at its head office here to finalise bank's farm credit plan for 2005-06 in which heads of all regions, managers of selected branches and agricultural field officers of the bank participated.

While releasing the two new schemes named "KBL - Krishik SarathiI" covering farm mechanisation activities and "KBL-Krishik Sinchana" covering irrigation, Anathakrishna analysed the developments in agri-lending of the bank over the last two years.

He said that there is a need to expand the geographical spread. Attractive interest rates are offered by the bank for the two new schemes to the farmers will be helpful to increase the agri-credit flow.

N S Chakkera, general manager (credit) in his introductory speech gave a brief account of the bank's agricultural portfolio.

He said, the bank's finance to agriculture has reached Rs 625 crore in 2004-05. Bank had disbursed Rs 155 crore during the year for agricultural activities, thus meeting 30 per cent increase in credit flow stipulated by RBI.

On the initiatives of the bank to help coffee growers, he said, the bank launched a special interest concession scheme called 'Krishik Samadhan Scheme', reducing their interest burden from 1992 considerably even before the government's present relief package.

He urged the branches to implement the relief package of the government which ends on June 30. He stressed that Union commerce secretary had clarified in a bankers' meeting called by Coffee Board that the scheme will not be extended.