Sheikh Hasina

Guwahati, Jan. 9: Banks in Assam will need to step up efforts to attain the credit flow of Rs 4,500 crore by April.

This is because the banks could not meet the stipulated target of credit flow of Rs 3,548.47 crore in 2010-11 while the target for 2011-12 has been kept at Rs 4,500 crore.

The banks could provide only Rs 2,894.69 crore in 2010-11. Sources said to achieve this target, the banks should make a concerted effort in terms of enhancing the credit flow.

The government should create a conducive climate for enhanced credit flow by bridging infrastructure gaps and appropriate policy initiatives.

The issue was discussed at a state credit seminar organised by Nabard to discuss the banking situation in the state.

The meeting called upon stakeholders to step up their efforts to facilitate enhanced agriculture production and rural prosperity through increased credit flow, ensuring better price for the agriculture produce, timely supply of inputs, creating adequate storage capacity and marketing support.

RBI governor D. Subbarao, who was recently in Assam, had asked banks to step up credit flow, especially to the agricultural sector.

Sources added that Nabard has called upon all banks to step up advances to the agricultural sector in Assam to improve the priority sector advances.

The State Focus Paper on Assam released by Nabard recently reveals that the share of agricultural credit in the total credit flow is 19 per cent, which is marginally above the prescribed norm of 18 per cent. However, the priority sector advances constitute 55.24 percent of total advances, falling short of the prescribed norm of 60 per cent. The states need to grow at a much higher rate than the national growth in order to bridge the gap by 2020 and the agriculture sector must be a prime driver of growth.

During 2010-11, a total of 81 (80 commercial banks and one regional rural bank) new branches were opened in the state.

A state government official said a number of steps have been taken to increase credit flow. A sub-committee of the State Level Bankers’ Committee has been constituted to monitor the flow of crop loans and issuance of Kisan Credit Card (KCC) and has decided that weekly credit camps will be held in all the 219 blocks of the state.

All rural and semi-urban bank branches in the state have been instructed to issue a minimum of 500 new cards during the year 2011-12.

The state government has allocated Rs 78,567 lakh to develop agriculture and allied sectors under the annual plan 2011-12.

The state agriculture department has nominated one nodal officer at the state level to co-ordinate with banks for holding weekly credit camps.

Dispur has also exempted stamp duty on agricultural loan upto Rs 50,000.