Karnataka banks achieve 90% of priority sector credit target

Banks in Karnataka have achieved 90 per cent of their priority sector credit target for the fiscal up to December 2011, the chairman of the State-level bankers' committee said at the 120th SLBC – Karnataka meeting here on Monday.

Mr Basant Seth, also the chairman and managing director of Syndicate Bank, said in a press release that banks have disbursed Rs 41,412 crore under Priority Sector Credit up to December 2011 against the revised annual target of Rs 46,027 crore, thereby recording an achievement level of 90 per cent.

Under the agriculture sector through Rapid Action Plan and Special Campaign mode, banks have disbursed Rs 21,709 crore up to December 2011 against the revised annual target of Rs 31,380 crore. Out of this, the share of crop production loan was Rs 14,985 crore as against the prescribed target of Rs 20,388 crore. Under the secondary and tertiary sectors, disbursement was Rs 8,828 crore and Rs 10,875 crore respectively.

Mr Seth also said that banks should accelerate credit flow to the thrust areas such as self-help groups, housing, education, minority community, micro and small enterprises segments.

While reviewing the performance of banks in the State as on December 2011, he said that aggregate deposits stood at Rs 3,75,778 crore, while aggregate advances were Rs 2,79,662 crore. The credit-deposit ratio stood at 74.42 per cent. The advances to priority sector stood at Rs 1,12,750 crore, constituting 40.32 per cent of credit, surpassing the RBI stipulation of 40 per cent, he pointed out.

Similarly, the advance to agriculture sector was Rs 50,762 crore comprising 18.15 per cent of the total credit, which is above the stipulated level of 18 per cent. Advances to MSME sector stood at Rs 50,519 crore.

1st phase of financial inclusion ahead of deadline

The first phase of the financial inclusion programme for covering villages with population of over 2,000 in Karnataka has been completed ahead of the March 2012 deadline. The Chairman of the state-level bankers' committee (SLBC) announced at the 120th meeting of SLBC Karnataka here on Monday that all the 3,395 unbanked villages in the State have been covered.

Mr Basant Seth, Chairman of SLBC and Chairman and Managing Director of Syndicate Bank, said in a press release that 6,024 unbanked villages with population of 1,000-2,000 have been allocated to banks for opening banking outlets by a gram-panchayat-wise re-mapping of the villages. So far, 36 financial literacy and credit counselling centres have been opened in the State.

Mr Seth also informed bankers and Government officials that 24 unbanked villages with population of 5,000 and above have been identified and communicated to the concerned service area banks for opening brick-and-mortar branches.

anju@thehindu.co.in