Reaching out to the unbanked populace in rural pockets has been DCB Bank’s mantra. The bank has, according to Narendranath Mishra, Head - Agri and Inclusive Banking, at least one-fourth of its new branches in unbanked locations across the country. The bank, according to Mishra, also conducts financial literacy programmes in catchment areas, offers small-ticket housing and business loans (for amounts as low as ₹2 lakh) and also micro-finance loans through business correspondents. Excerpts from an interview:

What is the size of your agri-lending portfolio?

Agri and inclusive banking account for roughly 17 per cent of our total advances. We offer various products to farmers such as farm equipment loans (which essentially could be a tractor/harvester loan), kisan credit card, loan for hi-tech agriculture, etc., at cost-effective rates

Your suggestions for crop protection...

Crop protection is exceedingly important. Paddy and sugarcane, for instance, are water-intensive crops. They also absorb maximum nutrients from the soil.

If farmers can be sensitised about alternate crops — say, between cereals, pulses and oilseeds — depending on the geography, soil condition and water table, it would go a long way in helping them take the right decision in the subsequent crop cycle.

Farmers should be sensitised about taking crop insurance. The Pradhan Mantri Crop Insurance Scheme will benefit farmers greatly, even if they don’t avail themselves of a loan.

Do you provide customised loans based on cropping pattern?

We provide customised loan repayment facility for farming and agriculture requirements, provide loans based on cost of cultivation of crop and the repayment schedule is aligned to the cash flow of the crop harvest.

The repayment can be annual or half-yearly. The customer can choose to pay higher EMI (equated monthly instalment) in the beginning and lower EMI towards the second half of the loan repayment tenure.

Farmers, especially those who take to vegetable farming, prefer the monthly EMI payment. We take a customer-centric approach

Do you foresee any change in the borrowing pattern, especially with prediction of good monsoon this year.

It can spur the demand for crop, tractor and farm equipment loans compared to the previous year.

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