Karnataka - Gulbarga

Laudable performance by banks in Gulbarga district on credit front

Gulbarga: The credit flow in Gulbarga district from the nationalised commercial banks during the year 2008-09 crossed the four digit number and stood at Rs 1,026.94 crore as against a target of Rs. 948.24 crore.

The National Bank for Agriculture and Rural Development (NABARD) in its review of the performance of the annual credit plan of the district, has shown that 2008-09 was a landmark year for Gulbarga district since the overall performance of the district was good compared to other districts which could not achieve the annual target since they were busy with loan waiver scheme.

According to official sources here, as against the set target of 680.95 crore fixed for agriculture, the disbursement of loan stood at Rs 654.98 crore.

In the allied sector, as against the target of 37.78 crore, only Rs. 27.44 crore was disbursed.

In the non farm sector, as against the target of Rs. 51.74 crore, the disbursement was Rs 64.94 crore.

In the other priority sector lending, banks in the district exceeded the target of Rs. 177.76 crore and disbursed loans totalling Rs. 279.57 crore.

In 2008-09 banks exceeded the credit disbursement target and performed better than the previous year.

During 2007-08, a sum of Rs. 901 crore was disbursed while in 2008-09, Rs. 1,026.94 crore was disbursed.

Commercial banks and Krishna Grammena Bank disbursed 51 and 41 per cent respectively of the total amount (Rs. 1,026.94) disbursed during 2008-09.

Among the banks, the Krishna Grameena Bank topped the list with disbursement of Rs. 420.84 crore as against the target of Rs. 330.26 crore.

The State Bank Of India gave away loans totalling Rs. 135.88 crore as against the target of Rs. 105.99 crore; the State Bank of Hyderabad disbursed loans totalling Rs. 115.61 crore as against the target of Rs. 128.22 crore; the Canara Bank disbursed loans totalling Rs. 73.39 crore as against the target of Rs. 67.14 crore; and the Syndicate Bank disbursed loans totalling Rs. 33.38 crore as against the target of Rs 25.10 crore.

Though the banks in the district performed well with respect to disbursement of loans, one area of concern for the district, according to sources, was the low ratio of investment credit to production credit. Investment credit to agriculture (long-term and medium-term loans to agriculture and allied sector) was very important to ensure higher capital formation in agriculture and allied sectors.

The ideal ratio of investment credit to production credit would be 40:60. However, the ratio in Gulbarga district was very low and it stagnated during the years 2007-08 and 2008-09.

Official sources said that the investment credit and production credit is falling constantly in the district.

In the year 2004-05, it stood at 19:81; in 2005-06, it came down to 18:82; it fell further to 17:83 in 2006-07; and in 2007-08, it plunged to 12:88 and remained at the same level in 2008-09.

The National Bank for Agriculture and Rural Development said it was necessary to increase credit disbursement to minor irrigation, farm mechanisation, plantation and horticulture, dairy, and poultry.

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