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Ms Nupur Mitra, Chairperson and Managing Director, Dena Bank, said that the delay in monsoons might affect the credit offtake in the agriculture sector.
The bank, however, aims to grow its agriculture loan book by focusing on allied sectors by way of investment credit or term loans.
Term loans are usually given for allied activities such as digging of wells, drip irrigation, and purchase of agricultural equipment and machinery. It also includes loans to agri-industries such as horticulture, sericulture, fisheries, dairy and poultry.
“Monsoon has been delayed and there is no adequate alternative irrigation facility. Naturally the offtake will be affected,” Ms Mitra told newspersons on the sidelines of an interactive session organised by the Bharat Chamber of Commerce here on Monday.
The bank aims to disburse close to Rs 500 crore to the agriculture sector this year. “Agricultural portfolio is not only crop-oriented. There are also other sectors which are not monsoon-dependent. So we will concentrate on those sectors so that the total agricultural portfolio is not affected,” she pointed out.
Power sector
The bank has brought down its exposure to the power sector to 15 per cent this year, as compared with 20 per cent during the previous year.
“We have curtailed lending to the sector as we did not want concentration risk,” she said.
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