The Hindu Business Line : Banks achieve 57% of farm credit target in H1

NEARLY 45 lakh new farmers have been extended credit by various banks during the first half of the current fiscal with the public sector banks (PSBs) accounting for a little over 21 lakh of them.

According to data made available by the Agriculture Ministry, the credit flow to the agriculture sector during April-September was 57.2 per cent of the fiscal target of Rs 1,42,000 crore at Rs 81,679.58 crore.

The 21-odd lakh farmers financed by the PSBs were provided loans to the tune of Rs 11,861 crore. Two-thirds of these were either small or medium farmers and 0.43 lakh were "tenant farmers, sharecroppers or oral lessees".

Going by the figures provided by the Ministry, banks in the private sector financed a little over 5 per cent of farmers' credits. These banks financed 2.61 lakh new farmers, whereas cooperatives and regional rural banks (RRBs) extended loans to 12.83 lakh and 8.07 lakh new farmers respectively.

Commercial banks provided Rs 7.28 crore as advances to farmers to enable them to redeem their debts from moneylenders. The corresponding figures for cooperative banks and RRBs were Rs 1.17 crore and Rs 3.91 crore respectively.

The Centre has set a target of financing 50 lakh new farmers this fiscal and it has asked commercial banks to extend loans to at least 100 farmers per branch. It has also asked them to finance at least 2-3 new investments in agriculture and allied sectors.

Kisan credit card, a key to improve farmers accessibility to bank credit, has been issued to over 5.16 crore farmers till June 30 this year.

Going by the first half trend, there is all likelihood of the banks exceeding the credit target for the agriculture sector. Last fiscal, credit extended to farmers totalled Rs 1,15,242.81 crore against a target of Rs 1,05,000 crore.

Taking the growth trend in credit flow to the agriculture sector, the Centre expects it to increase to 30 per cent annually.