K'taks agri credit potential at Rs 20,907 Cr

Bangalore, Feb 19: The NABARD has estimated the potential for credit in Karnataka at Rs 20,907 Crore for the year 2007-08 in its Potential Linked Credit Plan which highlights interventions required at various levels in the agriculture and rural sectors.

This was nearly 15 per cent higher than Rs 17,803 Crore estimated in the previous fiscal. The crop loans had a lion share of 46 per cent at Rs 9,509 Crore, while potential for investment credit in agriculture and allied activities was put at Rs 3,162 Crore.

The aggregate state level potentials was presented at the State Credit Seminar convened by NABARD today to highlight the potentials in the rural sector and the initiatives required, both by way of policy and infrastructure support from the state government and the Banking sector.

Speaking at the Seminar, NABARD Chief Regional Manager D B Gore said bridging of infrastructural gaps should be given the utmost importance by the state government."For Infrastructure development in rural areas, NABARD had sanctioned more than 16,000 projects involving support of Rs 3,314 Crore out of Rural Infrastructure Development Fund", he added.

In his Key-note address, Karnataka Addnl. Chief Secretary and Development Commissioner Falguni Rajkumar said that the benefits of Globalisation had only benefitted the financial, trade and investment sectors and had totally failed to reinforce the local communities, especially the rural population.

"The focus of globalisation process has been only in the urban sector and even just ten miles outside the cities the impact of globalisation is neither seen or felt. This has been a worldwide phenomena and has proved as the biggest problem factor," he said.

RBI Regional Manager Devika Muthukrishna said The CD ratio of Kanataka had gone upto 81.3 per cent as of September last year against the national average of 71.6 per cent. Banks had been able to perform exceedingly well in some of the policy initiatives taken in the recent past, especially in doubling the credit to agriculture in two years against the target of three years ending 2007 was commendable.

UNI