NEWS & ADVICE : PERSONAL LOAN
PSU Banks unable to reach 18% agriculture advances target
By Vaibhav Aggarwal
May 13, 2010
Print    Email    RSS   

Public sector banks like Bank of Baroda, Corporation Bank and United Bank of India (UBI) have been unsuccessful in achieving the 18% agriclutural advance target that was set for the year 2009-10.

Banks defend their failure saying that it is difficult to maintain the regulatory norms in this regard as their corporate as well as retail loan growth far exceeds the agricultural credit intake.

According to Corporation Bank executive director Asit Pal, banks found it very difficult to stick to the norms in a situation of fast growth in credit.

Bankers also say that the lending scenario in agricultural sector is highly climate dependant and the year 2009-10 has been a season of heavy monsoons and drought.

It has been directed that banks should lend 18% of their net bank credit to agriculture of which 13.5% has to be lent to farmers directly. Banks which are unable to meet the target are required to make up for it by contributing to the Rural Infrastructure Development Fund (RIDF) at a lower return than what would have been earned through agricultural credit.

Bank of Baroda has said that the total agricultural lending of the bank is 17% of the total credit disbursed and Union Bank of India has it around 16%.

"For us, it (the shortfall) is a historical problem and we are facing it difficult to bridge the gap amid fast overall credit growth," said Bank of Baroda executive director RK Bakshi.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Consolidation good for creating healthier...
J&K Bank raises PLR
Get a loan to meet your any personal need
Loans to assist people with bad credit scores
Getting the best rates on your personal...


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive