There has been a 24 per cent growth in the amount of loans disbursed by National Bank for Agriculture and Rural Development (Nabard) in West Bengal in 2011-12.
The total loans disbursed by Nabard to financial institutions and the State Government in 2011-12 increased to Rs 2,784 crore (Rs 2,241 crore).
The refinance for investment credit grew by 27 per cent to Rs 970 crore, while that for production credit to regional rural banks (RRBs) and co-operatives increased by 18 per cent to Rs 1,011 crore, said Mr S. Padmanabhan, Chief General Manager, Nabard.
With a view to supplement short-term funds of co-operative banks and RRBs, the regional office of Nabard in West Bengal provided refinance credit lines for crop loans for seasonal agricultural operations.
Refinance
The rate of interest on Nabard's refinance was 10 per cent in 2011-12. This could have been a deterrent for banks to borrow from the apex bank for agriculture last year.
“The lower refinance support availed by banks could be due to a combination of their lower requirement of funds and the rate of interest on refinance,” he said.
The refinance rates could inch down if the Reserve Bank of India announces lowering of key policy rates in its forthcoming Monetary Policy, he added.
RIDF
Nabard sanctioned close to Rs 1,102 crore for rural infrastructure development projects in 2011-12, a 27 per cent growth over last year.
A major portion of the RIDF assistance to the West Bengal Government was used for investments in irrigation and other agri-related projects, he said.
Annual Credit Plan
There is likely to be a 32 per cent growth in disbursement by banks in the State to Rs 45,000 crore in 2012-13. Of this, close to Rs 23,500 crore would be set aside for the agriculture sector.
Banks in the State disbursed close to Rs 34,000 crore (Rs 20,500 for agriculture) in 2011-12.
Kisan credit card
Close to 52 lakh farm households in West Bengal hold Kisan credit cards at present. Five lakh KCCs were distributed in 2011-12, under the new Government.
There is a target to cover 65 lakh farm households by March 2013. “The average loan size under KCC in the State is very low at Rs 9,000. This is because close to 23 lakh KCCs (out of 52 lakh) are given by co-operative banks which are starved of funds,” Mr Padmanabhan added. .