Free Press Journal

Bhopal: Banks shifting focus from farm to MSME under annual credit plan


Bhopal: The banks in the state have given more credits to micro, small and medium enterprises (MSME) in the financial year 2017-18, while sectors including education, housing continue to crying for attention.

Under annual credit plan, banks have facilitated 122 per cent credit to MSME sector against the set target, while credits towards education loan, housing, social infrastructure, renewable energy and others lagged far behind. Banks surpassed its 2016-17 target in MSME sector which stood at 102 per cent.

The focus of banks is shifting from agriculture sector as the credit to the sector during the period stood at 64 per cent only, against 79 per cent in the year 2016-17. Chief minister Shivraj Singh Chouhan will be chairing a review meeting of the state-level bankers committee on Wednesday. The agenda of the meeting includes discussion of achievements of the fiscal year 2017-18, review of performance under annual credit plan during the period and others.

CBs beat competitors in lending

Importantly Commercial Banks (CBs) are miles ahead in disbursing credits from their counterparts like Rural Regional Bank (RRBs) and cooperative banks. The CBs have disbursed credit to the tune of Rs 42905 crore in agriculture, Rs 21865 crore in MSMEs and Rs 71330 crore in priority sectors.

It achieved 72 per cent, 131per cent and 80per cent of the targets respectively in these sectors. While RRB’s achievement stood at 43 per cent, 66 per cent and 43 per cent in lending, while cooperative banks could achieve only 56 per cent, 4 per cent and 53 per cent of the set target in these sector.