May 18, 2024

The Bihar

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Bihar’s credit potential likely to increase 32%

2 min read

Patna: The credit potential of state is expected to witness a 32% hike compared to the current year’s annual plans of banks and financial institutions.

A NABARD release here on Monday said the state has an estimated credit potential of over Rs 53,000 crore for the priority sectors for the year 2014-15. The credit potential for crop loan in the state is projected to be over Rs 27,000 crore while agricultural term loans are supposed to be over Rs 38,000 crore for the next financial year. Small and micro enterprises (SMEs) could have a turnover of over Rs 7,000 crore, which is around 51% higher than the current figure.

State chief secretary A K Sinha, who presided over the state credit seminar for the credit plan for 2014-15 organized by Bihar regional office of NABARD (National Bank for Agriculture and Rural Development) here on Monday, released the Bihar State focus paper and deliberated on its salient features. The state focus paper is an aggregation of the potential-linked credit plans of all the districts of the state for the year 2014-15 and will serve as a reference document for the formulation of Annual Action Plan for the state.

The chief secretary also gave away awards to the best performing Farmers’ Club, Self Help Groups (SHGs), Joint Liability Groups (JLGs), Self Help Group Promoting Institutions and banks in the field of SHGs and JLGs. The seminar was attended by top state officials, regional director of Reserve Bank of India M K Verma, officials concerned of state level bankers’ committee, controlling heads of various commercial banks, regional rural banks and cooperative banks besides the representatives of several non-government organizations.

Speaking to TOI, Verma said the credit plan was an assessment of the credit potential absorbable in the state. He said ultra-small bank branches were not vibrant in the state. Actual potential of the branches must be taken into account while formulating such plans, he said. Verma asserted the branch network of banks across the state must be compared to national level branch network. The members of SHGs and farmer’s clubs shared their experiences with the gathering.

Courtesy: TNN

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