Credit flow in rural sector to register sizable growth

Thiruvananthapuram, Apr 8 (UNI) The National Bank for Agriculture and Rural Development (NABARD) today projected a quantum jump in the bankable potential of Kerala's rural sector for the year 2008-09, aggregating Rs 37,546 crore.

Talking to newspersons here, NABARD Kerala Region Chief General Manager Bhawar Puri said majority of the credit flow would be under priority sectors, comprising agriculture and allied activities, non- farm, agro, food processing and service sectors. The credit flow in the previous financial year was Rs 31,690 crore, he added.

Mr Puri said during the previous financial year, NABARD had sanctioned short-term loans worth Rs 500 crore for seasonal agricultural operations to the State Cooperative Bank at three per cent interest, as against Rs 342.65 crore during 2006-07.

During 2007-08, rural non-farm sector absorbed the maximum share of refinance from NABARD to the tune of Rs 235.86 crore out of the total 570.88 crore under investment credit, he added.

UNI CR SW HT1655