NABARD sanctions Rs 342.65 crore to Kerala

Thiruvananthapuram, Oct 3: The National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 342.65 crore at an interest rate of 2.5 per cent to Kerala following state government's assurance to look into the affairs of Kerala State Co-Operative Bank (KSCB).

The NABARD's loan would help the co-operative banks in the state to disburse loans to farmers at an interest rate lower than seven per cent, a release said here today.

The Kerala government had already declared that interest rates on loans to farmers this year would be 5.5 per cent upto Rs ten lakh and six per cent upto Rs three lakh.

The NABARD had sanctioned Rs 666.59 crores to KSCB and Regional Rural Banks (RRB) during the current year. The KSCB would have got higher re-finance from the NABARD if it had been organisationally stronger, the release said.

Of the 14 District Co-Operative Banks (DCBs), three (Kottayam, Ernakulam and Palakkad) were not eligible for assistance from the NABARD due to their inability to comply with certain statutory requirements, it said.

It said the DCBs and KSCB had to put the Primary Service Co-operatiave Bank's resources to better use, investing them wisely and in more remunerative avenues in order to cross-subsidise agriculture lending.

UNI