W Bengal banks to finalise state's annual credit plan on June 14

KOLKATA: United Bank of India, the convenor for state level bankers’ committee (SLBC), said banks operating in West Bengal will finalise the annual credit plan for the state on June 14, when they meet to discuss the credit potential and the feasibility of the loan disbursal.

National Bank for Agriculture & Rural Development (Nabard) recently said banks should lend Rs 33,655 crore to the state’s agriculture and allied sectors. Banks operating in the state said that the target is unrealistic as they are facing severe manpower crisis.

Nabard announces potential linked credit plan for every state which serves as a base for banks to finalise their state-wise annual target.

The target suggested by Nabard this year is nearly three time more than what banks collectively lent to the state’s agriculture and allied sectors in 2010-11. They disbursed Rs 11,556 crore to farmers in the previous fiscal.
"Even if we increase our capacity, this can’t be delivered," a senior banker said.

Total priority sector loan potential for 2011-12 for West Bengal has been pegged at Rs 49,638 crore, which is nearly double of last’s fiscal’s achievement of Rs 25,227 crore.

Segment-wise, Nabard pegged banks’ credit potential at Rs 7,466 crore (last year’s disbursement was Rs 7,236 crore) for the micro, small and medium enterprises sector and Rs 8,337 crore (Rs 6,436 crore)for the services sector.