NABARD estimates 20% rise in Odisha’s priority sector credit Potential at Rs.90,395 crore

Bhubaneswar : The National Bank of Agriculture and Rural Development (NABARD) has projected an overall credit potential of Odisha under Priority Sector at Rs.90,395.69 crore for FY 2020-21. This estimate is 20% more than this year ( FY20)’s target of Rs.75,611.97 Crore. 

In 2018-19 total credit flow to the priority sector in the state was Rs. 59936 crore.

“Out of the total credit potential for priority sector, an amount of Rs.43,282.11crore has been assessed under agriculture. Emphasis has been given to recalibrate the potential assessment keeping in view the recent trends in achivement of ground level credit” NABARD said in its state focus paper released today.

“Credit potential under agriculture consitutes 47.88 % of the total priority sector, of which Rs.40,227.79crore (92.94%) is estimated under farm credit, which comprises both crop loans and term loans for agriculture and allied activities. Besides, credit potential under agriculture infrastructure and ancilliary activities have been estimated at Rs. 1,603.94 crore and Rs.1,450.38crore, respectively. Moreover, out of the total credit potential assessed under agriculture sector, 31% is under term loans. Credit potential under MSME sector has been assessed at Rs.30,457.99 crore, constituting 33.69% of the total priority sector. Other sectors consisting of export credit, education, housing, renewable energy, others and social infrastructure have 18.43% share in the total credit potential under priority sector” it added.

Releasing the state focus paper Odisha finance minister Niranjan Pujari emphasized upon the need for increasing the Agri. term loan finance in other allied sector activities such as Animal Husbandry, Poultry, Fisheries etc., leading to asset formation and diversification of the income basket of farmers. He also advised all the banks to increase their banking outreach in unbanked areas of the State in order to help the State Govt. in effective implementation of various developmental programmes and also increase the scope of digital banking and FI across the State.

Speaking on the occasion Ashok K.K.Meena, IAS, Principal Secretary, Finance, GoO advised all the commercial banks to increase Agri Term loan financing under various state govt programmes and especially under MMKUY. He urged upon the bankers to focus on FPO and JLG financing under Agri and allied sector and ensured full support of State Govt in working with banking sector in the state to improve the rural credit scenario.He complimented NABARD for bringing out a well written document.