Lending to export units also slips
Shoma Patnaik
Panaji: Banks in the state have slipped on lending to agri-infrastructure, exporting units and social infrastructure, according to a review of bank credit.
An appraisal of credit flow during the year 2022-23 has revealed that banks in the state could achieve only 21% of the loan target in financing agri-infrastructure such as farmer producer organisations (FPOs) and farmer producer companies (FPCs).
Similarly the target realised in loans to social infrastructure projects such as schools, drinking water facilities, household toilets, etc, and loans to exporters was likewise low at 13.3% and 29.6% respectively.
Furthermore lending to education and housing sectors, which are part of priority sector lending obligations of banks, was also short of the target.
The 121st meeting of the state level bankers committee (SLBC) was held on May 16, where officials of the RBI, the state government,
SLBC convenor State Bank of India and the NABARD assessed the loan performance of all banks under the annual credit plan.
Data shared at the meeting has revealed pockets of poorly financed sectors in the state, although banks achieved overall 120% of the ACP target for the year 2022-23.
At the previous SLBC meeting held in March this year, the RBI asked banks to increase coverage on central social security schemes such as Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana, which create social security net for the poor and underprivileged.
The banks have also been asked to reduce delay in opening accounts of self-help groups that help local women in earning income.
“Banks must not insist on ‘customer due diligence’ for all SHG members for account opening and only CDD for the SHG office-bearers shall suffice,” said the RBI.
The state government has asked banks to enhance credit flow to micro units.
Also, as 2023 is the International Millet Year, the banks have been asked to financially assist farmers cultivating ‘nachni’ as area coverage of the crop has been low in the state.
As per information disclosed at the SLBC meeting, banks aggregate deposits and advances stood at `107313.8 crore and `33,213 crore respectively as on March 31, vis-à-vis deposits and advances of `98267.6 crore and `30045.9 crore in March 31 2022.
There was no improvement in the credit-deposit ratio of banks which was 30.9% for the year ending 2022-23.
The SLBC meeting was attended by senior officials of public and private sector banks as well as urban cooperative banks, representatives of payment banks, heads of state government departments and representatives of local industry bodies among others.