Nabard predicts increase in State's credit potential

The National Bank for Agriculture and Rural Development (Nabard) has projected a credit potential of Rs 52,168 crore for the State during 2012-13, an increase of 26 per cent compared to the previous fiscal.

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

This fiscal, the Nabard has assessed the potential for crop loans at Rs 24,290 crore, potential for water resources at Rs 1,096 crore, for farm mechanisation Rs 1,253 crore, for plantation and horticulture at Rs 1,870 crore, among others.

Among the districts, Belgaum has been identified as having the maximum credit potential at Rs 2,200 crore followed by Bagalkot Rs 1,755 crore and Bellary Rs 1,316 crore.

Nabard Executive Director B S Shekhawat felt the need for improving the per hectare credit in the State from the present level of Rs 23,000. He emphasised on the need for making the rural population more credit worthy through capacity building efforts and stressed the need for increasing flow of agriculture term loans to facilitate capital formation in agriculture. Banks need to step up their efforts to include uncovered farmers in the State through Kisan credit cards by utilising the services of NGOs, he said.

Chief Secretary S V Ranganath expressed his concern on the relatively low credit-deposit ratio of the State and called upon banks to evolve strategies for addressing the same. Nabard Chief General Manager SNA Jinnah said the State should build on its unique features like dryland horticulture and millet based farming. He called upon banks to focus on credit for dryland areas, post watershed development.