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The Annual Credit Plan 2017-18 for Karnataka is projected at Rs 1,60,020 crore.
The plan, prepared by Syndicate Bank (the lead bank) for the State Level Bankers’ Committee (SLBC), was released by Karnataka Chief Minister Siddaramaiah on Thursday.
The state’s Annual Credit Plan projects total priority sector credit disbursement of Rs 1,60,020 crore, in which the share of agriculture credit amounts to Rs 86,690 crore, constituting 54.17 per cent of the total priority sector.
Of the total agriculture credit projection of Rs 86,690 crore, the share of crop production credit stands at Rs 58,563 crore, forming 67.55 per cent of the total.
The share of Micro, Small and Medium Enterprises (MSME) sector credit is Rs 34,703 crore, that is 21.68 per cent, and that of the housing sector is Rs 16,977 crore, that is 10.6 per cent, and the education sector is Rs 3,857 crore, or 2.4 per cent. The overall growth rate in total priority credit comes to 16.5 per cent over the previous year’s achievement of Rs 1,37,393 crore.
Siddaramaiah, speaking after releasing the Plan, said, “I am glad to learn that banks have achieved the targets under the total farm sector and MSME sector under the Annual Credit Plan for the last three years. However, banks have achieved only 80 per cent of the target in respect of their crop production credit disbursement during 2016-17.”
When we expect growth year after year with preparation of such annual credit plans, “I find that the disbursement under the Housing loan portfolio, which is a national priority, has come down from Rs 9,061 crore in 2015-16 to Rs 5,916 crore in 2016-17. Similarly, the disbursement under the Education loan portfolio has come down from Rs 2,248 crore in 2015-16 to Rs 1,639 crore in 2016-17,” the Chief Minister pointed out.
Talking about drought, Siddaramaiah said, “A major part of our state is reeling under severe drought. Our Government has declared 139 taluks as drought affected during Kharif 2016 and 160 taluks during Rabi 2016-17.”
Urging help to needy farmers, he said, “The list of drought affected taluks has been communicated to all the banks. There is an immediate need to assist the farmers in the drought affected areas. Banks are requested to extend relief measures and also grant fresh loans in line with extant guidelines.”
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