Tamil Nadu - Erode   

Potential Linked Credit Plan for 2007-08 launched

Staff Reporter

`Disburse loan to beneficiary once it is sanctioned'

ERODE: Collector D. Karthikeyan has urged bankers to disburse loans to beneficiaries immediately after sanction is given.

At the district-level review meeting of the Lead Bank, Canara Bank, on Tuesday, the Collector said bankers had done a commendable job during this financial year.

Deposits

He praised the bankers for their involvement in making the credit deposit ratio as 112 per cent, which was an all time record.

He said the deposit in banks in the district till September 2006 was Rs. 4,259.64 crore, which shows an increase of Rs. 576.64 crore, compared to the amount in September 2005. He said the outstanding under advances stood at Rs. 4,764.13 crore as on September 2006, which shows an increase of Rs. 1,092.72 crore compared to September 2005.

Agricultural advance

Regarding the priority sector advances of all banks, he said it had shown an improvement of 31 per cent from Rs. 2,170.07 crore in September 2005 to Rs. 2,851.02 crore as on September 2006, which was 60 per cent of the total advances and above the Reserve Bank of India norm of 40 per cent.

RBI norm

He also said the outstanding in the agricultural sector had increased from Rs. 960.07 crore to Rs. 1,311.29 crore. The growth rate was 37 per cent.

Annual Credit Plan

The share of agricultural advance to total advance was 28 per cent, which was well above the RBI norm of 18 per cent.

The outstanding under SSI advances was Rs. 869.73 crore showing an increase of 39 per cent over the previous year. The Collector said under the Annual Credit Plan 2006-07 the banks in the district have distributed the prescribed level.

Revolving Fund

He said 14,815 self-help groups have been formed in the district and out of this 6,357 groups had been granted with Revolving Fund of Rs. 15.13 crore and 1,843 had been provided with Economic Activity loan of Rs. 44.70 crore.

Mr. Karthikeyan wanted bankers to disburse the Revolving Fund to the groups immediately after its sanction, as the delay would diminish the enthusiasm of the groups.

The Collector also launched the Rs. 2,194.68 crore Potential Linked Credit Plan for 2007-08.

Non-farm sector

Under the scheme it was projected to grant Rs. 1,000.72 crore for agriculture and its activities. Rs. 1,193.96 crore has been decided to advance for non-farm sector and other priority sector advances.

Advice to bankers

The Assistant General Manager, RBI, S. Velusamy, wanted the bankers to take steps to increase the deposits, Project Officer, DRDA, R. Rajashree, Assistant General Manager, NABARD, S. Srinivasan, Assistant General Manager, Canara Bank, B. Sudhakar Shetty and Lead District Manager K. Palanivel spoke.

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Potential Linked Credit Plan for 2007-08 launched

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