The National Bank for Agriculture and Rural Development (Nabrad) has projected a credit estimate of Rs 96,343.96 crore under priority sector lending in Punjab for the year 2013-14. This represents an increase of 17.5 per cent over 2012-13 and about 55 per cent increase over the actual disbursement during the year 2011-12. During 2012-13, the total credit estimate was Rs 82,024.50 crore.
Out of the total priority sector credit projections of Rs 96,343.96 crore for the year 2013-14, the major share is of crop loan at 49.62 per cent(Rs 47,808.34 crore), followed by other priority sector (OPS) at 21.11 per cent( Rs 20,334.89 crore), MSME at 17.30 per cent(Rs 16,664.31 crore) and agricultural and allied sector term loan (for land development, irrigation, horticulture, animal husbandry, fisheries, etc.) at 11.97 per cent (Rs 11,536.42 crore).
This was stated in the state focus paper, a comprehensive document containing the sector-wise potential linked plan projections released by Nabard.The State Focus Paper gives the credit projections for 2013-14 and also critical infrastructure required outlining the credit projections for 2013-14.
Also, in order to enhance the credit to the priority sector, Nabard has also chalked out action points. In the state focus paper, it mentioned that the widespread coverage of KCC (Kissan Credit Card) will reduce the dependence of farmers on informal sources. The banks need to ensure all farmers in the state are provided the KCC cards. Secondly, banks also need to issue KCC facilities to tenant farmers in order to reduce dependence on money lenders. Besides that people from economically weak and vulnerable sections like agricultural labourers, tenant farmers, share croppers etc, may be pursued to form Joint Liability Groups and provided with credit support for taking up farm and entrepreneurial activities.
It has also requested the state government to promulgate directions in the lines of Andhra Pradesh Land Licensed Cultivators Ordinance, 2011 that would ensure legal security to tenant farmers for availing institutional credit and safeguard the right of land owners.
It is worth mentioning that the state has significant concentration of Banks. It has 5035 bank branches comprising of 3841 branches of commercial banks, 261 branches of the three RRBs, 825 branches of cooperative banks, including that of Punjab State Cooperative Bank and 20 district Central Cooperative Banks and 19 branches of one Urban Cooperative Bank.
