Modi urges banks to increase credit flows

Urging Nabard to consider funding power plants under RIDF, deputy chief minister Sushil Kumar Modi on Saturday advocated, that commercial banks should involve panchayati raj institutions, primary agriculture co-operative societies and self help groups to increase the flow of credit and recovery.

Urging Nabard to consider funding power plants under RIDF, deputy chief minister Sushil Kumar Modi on Saturday advocated, that commercial banks should involve panchayati raj institutions, primary agriculture co-operative societies and self help groups to increase the flow of credit and recovery.

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Inaugurating the Bihar State Credit Seminar 2013-14, Modi said, the business correspondent model and ultra small branches have failed to yield the desired resultss.

The banks should involve panchayati raj institutions and PACS in the disbursal and recovery of loans, he said, citing the persistently high recovery rate for loans provided to SHGs. He observed, the inclusion of power sector for funding under RIDF would aid government's initiatives to develop the agriculture sector. gInterest subvention scheme should be extended to allied sectors of agriculture. I have also urged Union finance minister, P Chidambaram for the constitution of credit guarantee fund for education loans,h he added.

Expressing dismay over bank's inability to extend the benefit of state and central subsidy on KCC to farmers, Modi said, the government had provided R 30 crore to Nabard some three years back but banks have been able to use only Rs 5 crore for the purpose. Agriculture Production Commissioner AK Sinha, MD of COMPFED Harjot Kaur, CGM of Nabard DV Desh Pande, project director of JEEVIKA Arvind Choudhary and GM of SBI RR Parmar also spoke on the occasion. Credit potential identified

Releasing the State Focus Paper for the 12th Five Year Plan 2013-17, Modi said, Nabard has identified Rs 40,829 crore credit potential in the state for 2013-14. A majority of the credit potential has been accounted for agriculture sector at R 30,286 crore, while Rs 4,820 crore and R5,723 crore credit potential has been identified for small, tiny and medium industries and other priority sector respectively. During the five year period the total credit potential in the state have been estimated to grow to Rs 2,25,511 crore, he said.