The National Bank for Agriculture and Rural Development (Nabard) has projected Rs 24,620 crore credit potential for Karnataka during 2008-09.

In its state focus paper launched on Wednesday, Nabard said it had arrived at the credit potential after taking into account the resource endowment of each district, institutional presence, availability of infrastructure, level of technology availability and adoption among others.

The credit potential during 2007-08 was estimated at Rs 20,907 crore. This fiscal, the potential for crop loans has been assessed to have share of 46 per cent (Rs 11,320 crore), potential for investment credit in agriculture and allied activities is Rs 3,895.31crore, constituting 16 per cent of the total potential, Rs 2,190.79 crore is identified for non-farm sector, Rs 454 crore for agro-processing and Rs 6,759 crore for other priority sector activities.
Belgaum has been identified as having the maximum credit potential with Rs 2,029 crore followed by Dakshina Kannada (Rs 1,908 crore) and Mysore Rs 1,538 crore.

Nabard has suggested improvement of crop productivity for potential yield through single widow extension system and wider coverage of Kisan credit cards, revival of cooperatives by implementing Vaidyanathan Committee recommendations, improving market access to the rural produce by ensuring good linkages  and providing appropriate training facilities for skill upgradation under rural non-farm sector.

The Reserve Bank of India has suggested that the state government take up the formation of a centralised control registry similar to “Bhoomi” package for covering all non-agricultural immovable properties in the State.