The potential linked credit plan, prepared by the National Bank for Agriculture and Rural Development (NABARD), projects a credit potential of ₹6343.51 crore in Pudukottai district during 2022-23.
This plan document would serve as a guiding tool for bankers in optimal utilisation of credit advances in priority sector lending.
Based on the infrastructure and natural resources available, the potential for credit flow has been assessed at ₹6343.51 crore as against ₹5918 crore during 2021-22, reflecting an increase of 7.2%.
The credit flow potential for agriculture sector has been put at ₹4600.75 crore, of which crop loan amounted to ₹3316.43 crore and term loan ₹1284.30 crore. A credit flow of ₹360.43 crore has been envisaged for the MSME sector in the district.
Collector Kavita Ramu, who released the plan document on Monday, said that the plan had vital inputs required for planning by banks at the branch level. She advised the bankers to step up advances to the MSME sector and term lending for agriculture as there was a good potential to promote animal husbandry, horticulture, farm mechanisation, storage and marketing infrastructure and agro processing.
S. Jayashree, District Development Manager, NABARD , elaborated on the credit potential of each sector and urged banks to focus on lending for agricultural infrastructure such as rural godowns /warehouses, cold storage for storing agricultural produce to avoid distress sale and reduce storage losses. Formation and promotion of farmers producers organisations is another thrust area to increase income of farmers, she said.
R. Ramesh, Lead District Manager, Indian Overseas Bank, Pudukkottai, said that the banks should increase their lending to self-help groups to achieve the target. Banks should focus on lending under MUDRA, Stand Up India, PMFME in convergence with schemes of TNSRLM, District Industries’ Centre and TAHDCO, he added.