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Credit plan for Kannur sets target of Rs. 2,760 crores

Staff Reporter

Credit-deposit ratio put at 65 per cent

KANNUR: The district credit plan for 2006-07 sets a credit target of Rs. 2,760 crores, of which Rs. 1,824 crores is for priority-sector lending.

The plan was finalised at a meeting of the district-level review and consultative committees, chaired by District Collector K.S. Srinivas, here on Friday.

The plan envisages an increase of Rs. 338 crores in credit, of which Rs. 242 crores is for priority sectors. It also projects an increase of Rs. 104 crores in agriculture, according to Government guidelines to double the credit in three years.

The committees reviewed the performance of banks and other financial institutions in implementing the annual credit plan during the three quarters of the current financial year.

Under the credit plan for the quarter ended December 31, as against the target of Rs. 1,760 crores, disbursement was Rs. 2,006.09 crores, achieving 114 per cent of the target.

In pursuance of the Government guidelines to double the credit flow to agriculture, the target for this sector had been increased by 30 per cent during 2005-06.

Under the priority sector, the basic factor of the credit plan, the achievement was Rs. 1,158.94 crores, as against the third-quarter target of Rs. 1,144.75 crores, which worked out to be 101.24 per cent of the targeted level.

The performance of banks during the third quarter covered the shortfall in the first and second quarters of the year. However, the achievement under the agricultural sector was only 88.23 per cent.

Total deposits of the banking sector in the district stood at Rs. 4,354.24 crores and total advances at Rs. 2,824.43 crores at the end of review period, with a credit-deposit ratio of 65 per cent, an improvement by eight per cent compared to that of last year.

While the deposits had gone up by 10 per cent, advances had increased by 25 per cent, the meeting was told. The percentage of agricultural advances to total advances stood at 21 per cent against the stipulated level of 18 per cent.

Priority sector advances constituted 66 per cent of the total advances against the required 40 per cent.

The meeting said the banks had fallen short of the target to make efforts to step up lending in this sector.

Total disbursement under agriculture and allied sectors was Rs. 306.53 crores against the annual target of Rs. 508.43 crores, which comes to 60 per cent of the target.

As against the annual priority sector advance target of Rs. 1,582.3 crores, the achievement was Rs. 1,158.94 crores as on March 31.

The meeting was also told that Koothuparamba, Payannur, Kannur, Thalassery and Edakkad blocks had achieved or exceeded the third quarter target both under the agriculture and priority sector advances.

A.P. Abdullakutty, MP; Syndicate Bank Regional Manager D. Padmanabhan; Reserve Bank of India Assistant General Manager N.R. Pillai; Nabard Assistant General Manager P.A. Premkumar; and District Lead Bank Manager P.N. Vijayan Nair were present.

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