The Hindu Business Line : Dakshina Kannada banks post 11 pc growth in business

AS many as 347 branches of various banks in Dakshina Kannada district have done business of Rs 8,735 crore as on June 2004 compared to Rs 7,880 crore during the corresponding period in the previous year, registering a growth of 11 per cent.

This business was achieved by mobilising deposits to the tune of Rs 5,900 crore and extending advances to the tune of Rs 2,835 crore.

This was disclosed at the District Consultative Committee meeting for banking development in Mangalore on Friday.

The Regional Manager of Syndicate Bank, Mr B.K. Bhat, said that the overall performance of the banks in the district is good. However, he expressed concern over the low level of disbursement to non-farm sector and stressed the need for increase in agriculture lending.

The Chief Executive Officer of Dakshina Kannada Zilla Panchayat, Mr Subodh Yadav, who presided over the meeting, said that the district credit plan (DCP) for 2004-05 has earmarked 20 per cent of the total outlay for agriculture and allied activities. He said that the target for this sector should have been set at 35 per cent of the total outlay.

Under the DCP, these banks disbursed Rs 419 crore in the first quarter of 2004-05 against the annual target of Rs 1,240 crore and the quarterly target of Rs 304 crore. Of this, Rs 257.13 crore was disbursed to priority sector and Rs 161.43 crore to non-priority sector.

The meeting was informed that 41,270 farmers were given loans to the tune of Rs 165 crore under the kisan credit card scheme in the first quarter of the current fiscal.

In view of the Government directive on doubling of agricultural credit, the meeting decided to revise the annual target for agriculture sector under DCP to Rs 296.34 crore from the original target of Rs 241.78 crore.

A section of the bankers suggested that the development departments such as agriculture and horticulture identify the potential areas for extending credit and inform them to bankers. This will help the banks to increase credit to agriculture sector.

The Assistant General Manager of National Bank for Agriculture and Rural Development (Nabard), Dr Venugopal Arikeri, informed the meeting that Nabard has come out with a CD on "model bankable agricultural projects", and urged the bankers to make use of this facility.

Mr Laxmipathy, Assistant General Manager, RBI, and Mr A. Gopal, Lead District Manager, were present at the meeting.

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