The Hindu : Other States / Union Territories News : NABARD posts impressive performance

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Saturday, Oct 16, 2004

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Other States - Union Territories

NABARD posts impressive performance

By Our Staff Correspondent

CHANDIGARH, OCT 15. The National Bank for Agriculture and Rural Development (NABARD) has claimed major achievements in its activities, which include the Non-Farm Rural sector, in Punjab, Haryana and the Union Territory of Chandigarh. It posted impressive figures in the fields of refinance of investment credit, where it has encouraged its client banks to diversify their loan portfolios.

Addressing a press conference, the Chief General Manager (CGM) of the NABARD's regional office, A. Ramanathan said in the first six months, the bank had achieved the entire target of refinancing investment credit in Chandigarh, 98 per cent in Punjab and 68 per cent in Haryana. By end of the mid term the Bank had disbursed Rs. 987.80 crore, which was 84.6 per cent of its annual target for the entire region.

Quoting elaborate figures, Mr. Ramanathan illustrated that the recovery of loans from the farmers, client banks and both State governments, was far more efficient as compared to any other State as well as the national average. He said both States had satisfactorily adopted the principle of "development through credit'', which explained that there were negligible loans going bad, though 10-15 per cent repayments fell beyond the due date.

Mr. Ramanathan said that due to the new policy under the liberalisation regime, NABARD had been able to encourage its client banks, which also include the state co-operative, Agriculture and Rural Development Banks (ARDBs), regional rural and commercial banks to diversify their loan portfolio. The new areas where credit has been provided include high density horticulture crops, extension of edible oil refineries, minor irrigation projects, plantation of medicinal plants and setting up of non farm projects like marriage palaces, dhabas (eating places) and manufacturing of holograms.

Under the Union Government's Capital Investment Subsidy (CIS) scheme, NABARD accounted for financing 45 per cent of the additional storage capacity created as rural godowns. Under the scheme, 1.4 lakh metric tonnes (MT) of additional storage capacity was created in Punjab and 0.9 lakh MT was set up as cold storage space. NABARD has also begun to release subsidy for a centrally sponsored scheme for water harvesting for farmers of the Scheduled Caste section in the region.

Mr. Ramanathan said that while it had sanctioned short term credit limits of Rs 710 crore and Rs 1157 crore to co-operative banks in Punjab and Haryana, NABARD contributed 36 and 46 per cent, respectively, in disbursing crop loans to the farmers in both States. Both these Sates, together accounted for 20 percent of the total crop loans disbursed across the country. He claimed that under the Kisan Credit Card Scheme, at least 90 per cent eligible farmers had been covered.

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NABARD posts impressive performance