Half the banks fail to achieve agri loans target of 18%, RBI
|
Sectoral Deployment of Gross Bank Credit (Amount in Rs. crore)
|
| |
Outstan
dings |
as on |
Outstan
dings |
as on |
Varia
tion |
Varia
tion |
Varia
tion |
| |
Mar 2007 |
Mar 2008 |
Mar 2009 |
Mar 2010 |
2007-08 |
2008-09 |
2009-10 |
| *NFGBC |
18,01,240 |
22,02,890 |
26,02,290 |
30,37,412 |
4,01,650 |
3,99,400 |
4,35,122 |
| Agri Credit |
2,30,377
(12.8%) |
2,75,343
(12.5%) |
3,38,656
(13%) |
4,15,414
(13.7%) |
44,966
(11.2%) |
63,313
(15.9%) |
76,758
(17.7%) |
*NFGBC=Non Banking Gross Bank Credit, Figures in parenthesis- percentage to NFGBC |
Source: RBI, Trends and progress of Banking in India, 2009 and 2010
|
| Shortfall in direct Agri Finance Rs.36,000 crore |
Shortfalls in Agricultural and Weaker Section Loans: By Bank Groups (in Rs crore)
|
|
1.Agricultural Advances |
Mar 2008 Mar 2010
32,206 36,400* |
| Public Sector Banks |
21,893 23,000* |
| Private Sector Banks |
10,313 13,400* |
| 2.Weaker Section Loans |
45,335 37,000 |
| Pub.Sector Banks |
19,981 14,600 |
| Pvt. Sector Banks |
25,354 22,400 |
| Aggregate Short Fall (1+2) |
77,541 73,400 |
Source: RBI (2008): Trend and
*Data pertains to only Direct Agri advances |
Progress of Banking in India 2007-08 (EPW 240209) & TPB-2009-2010 |
|
More than half of public sector banks (15 out of 27-Amount Rs.23,000 crore) and exactly half of the private sector banks (11 out of 22-Amount Rs.13,400 crore) could not meet the agricultural sub-target.
|
| HDFC Bank lags with highest short fall fo Rs.7,000 crore followed by four banks with shortfall of over Rs 2,000 crore(Oriental Bank of Commerce, Corporation Bank, Union Bank of India and United Bank) |
Shortfall in financing of weaker sections Rs.37,000 crore
|
| Further, majority of the private sector banks (15 out of 22) could not meet the sub-target of 10 per cent under weaker sections. |
The shortfall amounts to Rs22,400 crore. HDFC Bank lag in the shortfall was again a huge sum of Rs8,700 crore followed by ICICI Bank (Rs.6,600 crore) and Axis Bank (Rs.2,400 crore).
|
The shortfall on account of five public sector banks amount to Rs14,600 crore with IDBI Bank alone accounting for a huge shortfall of Rs.8,300 crore followed by Oriental Bank of Commerce (Rs.2,740 crore), Corporation Bank (RS.2,000 crore) and Bank of Maharastra (Rs. 1,300 crore).
|
Thus the the total shortfall in financing weaker sections was a whopping Rs.37,000 crore. |
Banks disburses 24% of agri credit target in April-June |
| The government said that Banks have disbursed agricultural credit of Rs 89,687 crore in the quarter ended June — 24 per cent of the target of Rs 3, 75,000 crore for the financial year. Credit disbursement in 2009-10 was to the tune of Rs 3, 66,919 crore, much above Rs 3, 25,000-crore target. |
| The flow of agricultural credit since 2003-04 has consistently exceeded the target set by the government for the financial year. Its flow has gone up from Rs 86,981 crore in 2003-04 to Rs 3, 66,919 crore in 2009-10. |
| Since the 2006-07 kharif season, farmers have received crop loans on a maximum principal amount of Rs 3 lakh at 7 per cent interest rate. In 2009-10, an additional 1 per cent interest subvention was provided to those farmers who repaid their short-term crop loans within the time given to them by banks. |
| In the current financial year the subvention rate for timely repayment of crop loans has been raised to 2 per cent, bringing down the effective rate of interest for such farmers to 5 per cent a year. |
| The limit of collateral-free farm loan has also been increased from Rs 50,000 to Rs 1 lakh. BS November 09, 2010 |
| Bad loans on the rise in small-scale industries |
 |
| Small-scale industries were the highest contributors to priority sector non-performing assets (NPA) of banks, according to data released by the Reserve Bank of India for the financial year 2009-10. |
| NPAs arising out of the small scale industries grew by 65 per cent to Rs 12,975 crore in 2009-10 as against Rs 7,874 crore in previous fiscal. |
| NPAs arising out agricultural loans grew by 45 per cent in the financial year 2009-10 for banks. The figure grew to Rs 10,353 crore as against Rs 7,149 crore in the previous fiscal. B L :09/11/2011 |
| Bill Gates 'will not leave a fortune for his children' |
|
Bill Gates, one of the world's richest men, has said that he is not interested in using his billions to launch a dynasty and would not leave his fortune to his children. |
The 54-year-old father of three, worth an estimated 34 billion pounds, has unleashed his planetsized brain and the extraordinary dynamism that made Microsoft the all-conquering global software giant to defeat global poverty. |
However, as for the inheritance of his children, Gates said: "I will give the kids some money but not a meaningful percentage. Setting the number so that they need to work but they feel reasonably taken care of is hard to figure out." London, Sept 20 (PTI) |
| KRSR/AND151/101110 |
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