Finance ministry asks PSU banks to meet loan targets for agri-allied sector

The finance ministry has asked public sector banks (PSBs) to meet loan targets for the agri-allied sector during the current financial year.

Department of Financial Services Secretary M Nagaraju in a meeting held on Tuesday reviewed the progress of credit disbursement to agri-allied activities like animal husbandry, dairying and fisheries with Public Sector Banks (PSBs), NABARD and State/ UT Level Bankers' Committee.

Representatives of state governments/UTs, the Department of Animal Husbandry & Dairying and the Department of Fisheries also participated in the discussions, the finance ministry said on Wednesday.

The secretary urged PSBs to take all necessary steps to ensure that respective targets are met during the current financial year and stressed the state governments to facilitate banks in improving the flow of credit to these sectors.

 

Nagaraju underscored the importance of the allied sector in driving agricultural growth and its employment potential in rural areas and highlighted the trend of regional disparity in credit disbursement in allied activities.

He also directed banks to conduct regional-level assessments/meetings to ensure disbursement of credit in all areas as all regions have huge potential in allied activities.

During the meeting, NABARD was asked to coordinate with state line departments and LDMs in the identification of fish farmers and providing them with the benefit of the KCC scheme.

He underlined the central government's focus on seamless access to affordable credit to allied sectors and urged all stakeholders to take all necessary steps to increase credit flow to the sector.