Nabard sets higher state credit goal
The National Bank for Agriculture and Rural Development (Nabard) expects the credit potential for the priority sector in Bengal to rise 21 per cent in 2020-21 to Rs 1,91,289.44 crore against the 2019-20 estimate of Rs 1,57,497.71 crore.
Of the total credit potential estimate, MSME and agriculture will constitute 42 per cent and 40 per cent, respectively. This credit potential will now be used as a reference for bankers to draw a state credit plan.
“The state focus paper, which gives the credit potential, takes into account the changes in government policy, infrastructure development, the health of the financial institutions and district wise and sector-wise gaps that need to be addressed. Bengal is growing as is reflected in the 12.58 per cent growth in GSDP (gross state domestic product) in 2018-19,” said Subrata Mandal, chief general manager at Nabard.
Mandal, however, said while MSME credit growth has been encouraging, there is scope in agriculture credit.
“While agriculture credit has grown, the commensurate impact on GSDP is not reflected. The share of agriculture credit to agriculture GSVA (gross state value added) was 18.83 per cent in 2018-19 against the all-India share of 46.4 per cent. A quantum jump in agriculture credit is required,” said Mandal.