Review of Agricultural Credit Flow in the States covered under new initiative for BRINGING GREEN REVOLUTION IN EASTERN INDIA (BGREI)

1
Review of Agricultural Credit Flow in the States
covered under new initiative for BRINGING GREEN
REVOLUTION IN EASTERN INDIA(BGREI)

• Presentation by
• CGM, NABARD, UPRO
• Lucknow

2
BGREI-Introduction

• Launched by GoI in 2010-11 for improving crop
  productivity in Eastern Region of the country
  through intensive promotion of agricultural
  production technologies.
• Scheme covers 07 States of Eastern India
• Including 28 districts of Eastern Uttar Pradesh

3
Status in Eastern UP population (2011 Census) and
Bank Branch Network UP v/s Eastern
UP
UP Eastern UP Share of Eastern UP ()
Total population 19.96 (crore) 8.14 (crore) 40.8
Branch Network (Excluding Coops.) 10876 3762 30.8
Avg. population served per bank branch 18352 (12478 All India) 21637
(Source SLBC-Data as on 31 March 2011)
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Major areas of concern in Eastern UP

• Higher concentration of SF/MF
• Lower productivity
• Low branch network
• Low share in credit, low per ha credit
• Poor crop coverage under bank loan
• Lower CD Ratio (17 in Mau to a high of 39 in
  Maharajganj, as against State average of 48)

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Trends in Credit Flow for Agriculture-UP v/s
Eastern UP(Crop Loan Investment Credit)


(Rs. Crore)
Year UP Eastern UP Share
2008-09 20871 4976 24
2009-10 29056 5890 20
2010-11 34241 6776 19.8
2011-12 (Target) 43505 10147 23.3
As per revised Sub Plan for 28 districts of
Eastern UP being covered under BGREI Share of
net sown area in Eastern UP is 35 Share of
credit in Eastern UP is around 20
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Sub Plan for Eastern Uttar Pradesh for
2011-12(28 Districts)

• NABARD has two roles in Eastern UP
• Preparation of Sub Plan for 28 districts
• Conducting Sensitization Programs

7
Sub Plan for Eastern UP 2011-12(i) Enhanced
Target for Production Credit (2011-12)

• Original target of 19.87 lakh ha under different
  crops, area enhanced to 23.04 lakh ha (By 3.17
  lakh ha)
• Target for crop loans enhanced to 6710.84 crore
  (increase of 1008.00 crore)
• SLBC has constituted a Sub Committee under the
  Chairmanship of Union Bank of India to review the
  program of Sub
  Plan(2011-12)
• Target for financing 28000 JLGs by different
  banks operating in 28 districts of Eastern UP
  allocated for 2011-12
• Target for credit linking 32700 SHGs (75000 for
  the entire State of UP) fixed for 28 districts of
  Eastern UP during 2011-12
• Crop Loan of Rs. 6710.84 crore

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Sensitization Programs

• Training Program for Master Trainers conducted by
  NABARD at Lucknow, Varanasi and Gorakhpur in
  September 2011
• Imparted training on financing of
  JLGs/SHGs/Farmers Clubs etc. to all 28 LDMs and
  71 officers from CBs, RRBs and UPCB.
• Master Trainers are to conduct 124 training
  programmes for their Branch Managers.
• 22 programs already conducted

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Other Initiatives by NABARD

• For key Agri investments in the Eastern Region
  assessed at Rs. 3912 crore for the year 2011-12.
• To avail the Refinance for above Agricultural
  Investments in Eastern Region
• at Concessional Refinance Support (100) for
  investment credit, _at_ 7.5 p.a. against 10 p.a./
  10.50 p.a. banks to achieve minimum target
• Sectors identified- Water Resources Development,
  Land Development, Farm Equipments and Seed
  Production
• Model schemes for these activities have been
  prepared and being circulated among the banks

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Other Initiatives by NABARD

• Refinance support for Agri. Operations to RRBs
  and eligible DCCBs operating in Eastern UP has
  been enhanced to 50 of RLP.
• Under Financial Inclusion and Financial Literacy,
  NABARD has provided support to the tune of Rs.
  361 lakh in the Eastern UP to RRBs to cover
  unreached individuals.

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Financing Agril. Investment - Concessional
Refinance Support allocated by NABARDfor Eastern
UP for 2011-12
Uttar Pradesh (Eastern) Commercial Banks RRBs DCCBs Allocation by NABARD (Rs. crore)
Financial Financial Financial Financial
Water Resources Development 67.00 55.85 16.68 139.53
Land Development 11.26 9.39 2.81 23.46
Farm Equipments 57.15 47.64 14.23 119.02
Seed Production Units 13.20 11.01 3.29 27.50
Total 148.61 123.89 37.01 309.51
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Disbursement of Crop Loan in Eastern UP-2011-12
(Rs. Crore)
Region Target for 2011-12 Eastern UP (28 districts) Disbursement (April to Sept. 2011) achievement
Eastern UP (28 districts) 6710.84 2205.76 32.9
Agency wise targets Agency wise targets Agency wise targets Agency wise targets
Name of the agency Crop Loan disbursement share
CBs 1097.31 49.7
RRBs 951.54 43.1
Coop. 156.91 7.2
Total 2205.76 100
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KCCs issued by RRBs and Coop. Banks (Cumulative
Position as on 30 September 2011)
Agency Number (Lakh) Loan sanctioned (Rs. crore)
RRBs 2.20 1329.45
Coop. Banks 3.13 1066.70
Total 5.33 2396.15
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State-wise Ground Level Credit for Agriculture
for the year 2011-12 (other than UP)Position
upto August 2011
(Rs. Crore)
S.No. State Crop Loan Crop Loan Term Loan Term Loan Total Agril. Total Agril.
Target Achievement Target Achievement Target Achievement
1 Assam 1120 22.16 1003 46.21 2123 68.37
2 Bihar 15688 1067.93 5413 646.61 21101 1714.54
3 Chhattisgarh 2663 1170.69 3119 30.78 5782 1201.47
4 Jharkhand N.A. 54.64 N.A. 8.55 2371 63.19
5 Odisha 8700 300.06 4223 34.29 12924 334.35
6 West Bengal N.A. 770.77 N.A. 165.73 20300 936.50
Total 28171 3386.25 13758 932.17 64601 4318.42
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Disbursement of loans to new farmers, small and
marginal farmers, tenant farmers, share croppers,
oral lessees for the year 2011-12-(other than UP)
( Position as on August 2011)
(Rs. Crore)
S.No. State New Farmers SF/MF TF/SC/OL
1 Assam 59.26 66.98 1.40
2 Bihar 706.09 829.71 33.54
3 Chhattisgarh 151.89 545.69 247.36
4 Jharkhand 36.67 52.29 0.04
5 Odisha 112.95 1151.82 19.91
6 West Bengal 170.44 334.05 88.99
7 Total 1237.30 2980.54 391.24
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ST(SAO) credit limits sanctioned to State Co-op.
Banks and utilization there against for the Year
2011-12 for Eastern States (other than
UP)(Position as on Sept. 2011)
(Rs. Crore)
SCB Name of the State/ UT in East Zone Limits sanctioned Maximum Utilization Utilization
1 Assam 0.00 0.00 0.00
2 Bihar 125.00 0.00 0
3 Chhattisgarh 560.00 440.62 79
4 Jharkhand 0.00 0.00 0
5 Odisha 1653.00 953.46 58
6 West Bengal 8.00 111.74 14
All India 27861.97 13939.51 50
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ST(SAO) credit limits sanctioned to RRBs and
utilization there against for the Year 2011-12
for Eastern States (other than UP)
Position as on Sept. 2011)
(Rs. Crore)
RRBs Name of the State/ UT in East Zone Limits sanctioned Maximum Utilization Utilization
1 Assam 40.00 9.00 23
2 Bihar 325.00 168.26 52
3 Chhattisgarh 89.00 35.17 40
4 Jharkhand 60.00 14.37 24
5 Odisha 173.25 80.56 46
6 West Bengal 225.00 47.05 21
All India 11703.52 5624.25 48
UP Total Limit sanctioned for the State Rs.
3900 crore RRB Rs. 2300 crore
Coop. Banks Rs. 1600 crore
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