December 07, 2010

NABARD allocates Rs 750 cr more for crop loan refinance in AP

Business Standard, December 7,2010

NABARD has made an additional allocation of Rs 750 crore for providing refinance to Cooperative Banks and Regional Rural Banks (RRBs) in Andhra Pradesh keeping in view the seasonal agricultural operations (crop loans) of thee banks.

Of this fresh allocation, Rs 600 crore has been earmarked for Cooperative Banks while the remaining amount was allocated to RRBs. This is in addition to the existing limits of Rs 2550 crore including 1580 croe to Cooperative Banks and 970 crore to RRBs.

With the additional allocation , the total allocation of refinace under production credit in the state has gone upto Rs 3300 crore for the current financial year, an increase of 38 per cent over the total allocation of Rs 2397 crores druing the last year.

NABARD has increased the allocation to take care of the increased credit demand of farmers generated in the state on account of favourable monsoon this year. The credit needs of farmers affected by recent floods also would be taken care of by this additional allocation, the release said.

There is a buoyancy in the ground - level credit and banks are expecting that the credit demand will increase during the ongoing Rabi season as most of the irrigation projects are full to the brim.

As against Rs 1580 crore allocation for the current year, the Cooperative Banks have already drawn refinance Rs 1383 crore from NABARD while RRBs have availed refinance of Rs 926 crore as against allocation of Rs 970 crore .

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