Apex Bank disburses farm loan worth over 2000 crore

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Bangalore, Sep 21 (UNI) The Karnataka State co-operative Apex bank Limited, a state-owned enterprise, has disbursed over Rs 2229 crore for the year 2006-07, double than the previous corresponding year to the agriculture sector, Bank's chairman Mr M N Rajendra Kumar informed here today.

Addressing newsmen here today Mr Rajendra Kumar informed that the bank has disbursed Rs 2229.94 crore for 2006-07 including Rs 1837.34 crore for agriculture and another Rs 392 crore for non-agriculture purposes. "The quantum of disbursement of agriculture loan this year was double than the previous year" he said.

Mr Rajendra Kumar informed that during 2005-06 the bank's advance to the agriculture sector was stood at Rs 1178 crore. He said that the bank has registered a net profit of Rs 13.35 crore during 2006-07 and the Annual Gegeral body meeting which met here has decided to pay 12 per cent dividend to its members.

Stating that the state owes Rs 1220 crore to the Apex bank towards the waiver of farm loan to the tune of Rs 25000 announced by the coalition government. "The government so far had released Rs 1250 crore to the bank and still owes another 1220 crore, which was expected to release shortly" he said. The state government had announced a one-time loan-waiver of upto Rs 25000 to those farmers who have taken loans from co-operative institutions during 1st January 2007 to 31st December 2007, in the state.

He said the bank has advanced short term and medium term loans of Rs 2220.39 crore to 877,628 farmers during 2006-07 in the state through the district Central Co-operative banks and primary agriculture co-operative societies. It also extended a special credit limit to the extent of Rs 160.57 crore out of its own resources to weak DCC Banks including Rs 57.57 crore to District co-operative bank Kolar and Rs 12.50 crore for the rehabiliatation of KCC Bank Ltd Dharwar.

Mr Manoj Kumar also informed that it had recovered Rs 177 crore against the loan advancement of Rs 240 crore to various sugar factories in the state. The disbursement of farm loans to the agriculture sector was made with a simple interest rate of four per cent which has the permission of National Bank for Agrigulrue and Rural Development (NABARD).

Outlining the future plans of the bank, Mr Manoj Kumar informed that the bank has set a target to increase its own funds from Rs 265.90 crores to 287 crores and also deposits from Rs 2664 crore to Rs 2935 crore during 2007-08. It also set a target to reach disbursal of loan of Rs 2490 crore against the present advance of Rs 2237 crore.


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