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Sectoral deployment of bank credit: Decline in Agri Credit |
• The share of agriculture credit in gross bank credit declined marginally to 10.9 per cent from 11.3 per cent in 2008.
The share of credit to industry increased to 39.8 per cent in 2009 from 38.4 per cent in 2008).
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| • The share of credit to trade increased to 9.7 per cent in 2009 as against 8.8 per cent in 2008. |
Decrease in growth rate of Agri Credit off-take |
• The growth rate of bank credit to agriculture decreased to 12.9 per cent in 2009 as against 19.1 per cent in the preceding year.
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• Personal Loans registered a growth of 14.0 per cent in 2009 compared to 12.0 per
cent in 2008. Housing loans, which forms a part of personal loans grew by 14.6 per
cent compared to 8.5 per cent in the previous year.
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Fall in Agri Credit Share in Incremental Bank Credit
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| • The agriculture sector got about 8.2 per cent of the incremental credit in 2009 compared to 9.4 in 2008. |
• The industry sector, with 39.7 per cent share in the incremental credit in 2008,
continued to capture the major share in 2009 at 47.8 per cent.
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| Decline in share of Small Loans |
• The number of small borrowal accounts (with credit limit up to Rs 2 lakh) contributed 87.0 per cent of total number of accounts as against 88.4 per cent in 2008, while the share of outstanding credit of small borrowal accounts was 12.3 per cent as compared to 13.7 in 2009.
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• The share of credit with credit limit above Rs. 25 crore increased to 41.2 per cent in 2009 from 35.6 per cent in the previous year.
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Low Rural C-D ratio, Metro high
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Banks’ total outstanding credit rose by 17.8 per cent to Rs 28,47,713.12 crore during 2008-09, with 67% of the loan amount given in metropolitan areas and just 7.3% in rural and 9.3% in semi-urban areas..
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• The All-India C-D ratio was at 72.6 per cent in 2009 compared to 74.4 per cent in 2008.
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| • The population group-wise C-D ratio in respect of rural areas at the end of March 2009 was at 57.1 per cent. |
The rural hinterlands accounted for only 7.3 per cent or Rs 2,07,926 crore. The total number of credit accounts in these regions as of March 31, 2009, stood at 3.33 crore.
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| The paper ‘Impact of Agricultural Credit on Agriculture Production’ by Abhiman Das et al, brought out by RBI concludes that the direct agriculture credit amount has a positive and statistically significant impact on agriculture output and its effect is immediate. This observation reveals that agriculture credit plays a critical role in supporting agriculture production in India. |
Had 72.6% (being the average C-D ratio) of the deposits garnered in rural areas were disbursed in rural areas, an additional amount of Rs 55,000 crore could have been given as farm credit thus helping farmers to produce more.
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In the case of semi-urban and urban areas the C-D ratios were 50.0 per cent and 55.6 per cent, respectively.
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Semi-rural communities had an outstanding amount of Rs 2,64,925 crore in 2008-09 from SCBs, or 9.3 per cent of the total credit. These regions accounted for only 2.45 crore accounts.
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Had 72.6% (being the average C-D ratio) of the deposits garnered in semi-rural areas were disbursed there itself, an additional amount of Rs 115,000 crore could have been given as credit to agri and SME sectors thus helping in generating considerable employment and income.
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| The C-D ratio recorded in metropolitan centres as per place of sanction was 86.9 per cent. |
| Regional imbalance in credit disbursal |
| • Rajasthan, Chandigarh, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu had C-D Ratio, above the All-India C-D Ratio (72.6 per cent). RBI-BSR Mar2009 |
| Scheduled banks' NPAs at Rs 81K cr |
| gross non-performing assets of scheduled commercial banks was Rs 81,813 crore, amounting to 2.5 per cent of their gross advances as on March 31, Parliament was informed. |
| On the total, the gross NPAs of public sector banks was Rs 57,301 crore, while the rest Rs 17,384 crore was from the private lenders, Minister of State for Finance Namo Narain Meena said in a written reply to Rajya Sabha. 180810 |
| IAS sans accountability, R. Sundaram |
| “Abolish the IAS”. That was the stentorian call from one of the most respected and eminent citizens of the country, Mr N. R. Narayana Murthy, Chief Mentor, Infosys. Strangely, he is not the first famous Mysorean to utter such sentiments. Fifty-seven years ago, a great Indian engineer of the 20th Century and a prime architect of modern India, Sir M. Viswesvarayya, had stated: “The theory of ICS men being good for all things has done us much harm.” Another eminent Indian, Dr Verghese Kurien, the father of the White Revolution, has been expressing a similar opinion for the last 30 years. |
| The fact is, we may be undertaking far-reaching electoral reforms to curb money power and ‘paid news', but the cosy arrangement called the IAS cannot be rooted out. |
| No progress, therefore, seems imminent in unshackling the country from the bureaucracy. Again, the stranglehold of the IAS in higher reaches will tighten if a recommendation of the Sixth Central Pay Commission is implemented, which ensures that no one else other than from the IAS, however brilliant in talent and outstanding in performance, can aspire for a position ahead of an IAS officer at least two years junior to him/BL 200810 |
| Large scale illegal mining in various states: Govt |
| Acknowledging "large scale" illegal mining in various states, the government today said this could lead to a nexus between criminal and anti-national elements, especially in naxal-affected areas. |
| Making a statement on illegal mining in the Lok Sabha, Minister of State for Mines B K Handique said a Commission of Inquiry has been set up to look into the extent of illegal mining. The Commission, which would present its report within 18 months, would identify persons or firms responsible and ascertain if there had been any tampering of official records relating to land and boundaries .Press trust of India / August 17, 2010 |
| Only 4.22% graduates fit for a job: study |
| Employability with regard to IT product firms is as low as 4.22 % according to a study on employability, conducted by Aspiring Minds. But with regard to IT services companies it is 17.84% (wherein an in-house training of 3-6 months is provided in the company). |
| The report also revealed that KPOs find only 9.47% technical graduates employable. While the employability with regard to BPOs is 38.23%, it is 25.88% for the Technical Support Jobs (TSJs). |
| About 62 per cent of all engineering graduates require education or training to be eligible for any job in the information technology (IT) and IT enabled services (ITeS) sector, said a study by Aspiring Minds--an assessment technology provider. |
| IT product firm feel that only 4.22 per cent graduates are fit for employability. Similarly IT services companies said that just about 17.84 per cent are employable. |
| This is not all, the study noted that knowledge process outsourcing firms found only 9.47 per cent technical graduates employable. However, employability in the business process outsourcing (BPO) and Technical Support jobs was at 38.23 per cent and 25.88 per cent respectively. Ashok Kumar(IndianExpress.com) 2010-08-17 21 |
| KRSR/280810 |
