BHUBANESWAR: With commercial banks in the State clocking just 57.65 per cent (pc) of the annual credit plan of Rs 90,395.69 crore fixed for 2020-21, the State government on Tuesday urged the controlling heads of the banks to improve lending to priority sectors, particularly agriculture.
Against a credit target of Rs 40,227.8 crore for agriculture, fishery and dairy sectors, the banks have achieved only 56 pc till December 31, 2020. Fishery and dairy sector lending was 13.91 pc and 16.17 pc of the annual credit plan (ACP) of Rs 150.75 crore and Rs 285.85 crore respectively.
The total priority sector lending was Rs 52,109.89 crore by the end of last year. However, the advances to the MSME sector saw an achievement of 76.85 pc. As against a target of Rs 30,457.99 crore, the banks have disbursed credit to the tune of Rs 23,408 crore.
Expressing concern over the low credit disbursement to agriculture and allied sectors at the State-level bankers committee meeting here, Finance Minister Niranjan Pujari reminded the bankers about the request made by Chief Minister Naveen Patnaik for liberal funding to farmers, Mission Shakti groups and MSMEs to tide over the financial crisis arising out of Covid-19 pandemic.
The matter was discussed in the SLBC sub-committee meeting on agriculture, FARD and MSME after the Chief Minister took a district-wise review on credit flow to agriculture, SHGs and MSMEs.
“The ACP achievement improved from 45.61 pc in September 2020 to 57.65 pc in December which further increased to 63 pc as on January 31, 2021,” SLBC sources said. Principal Secretary Finance Ashok Meena told the meeting that the Chief Minister will take another review on credit score to these three sectors with bankers and district collectors on February 26.
The Chief Minister is likely to award banks which have performed well and topped in the credit score.Principal Secretary Agriculture and Farmers’ Empowerment Saurabh Garg urged SLBC to advise banks to simplify the credit guidelines to the farm sector for speedy disposal of loan application of farmers.He, however, expressed his concern at the high pendency of the loan application under Mukhya Mantri Krishi Udyog Yojana.