Target. Target Amt % 3 Total Agri NFS / MSME

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1 EXECUTIVE SUMMARY I Theme of the The development of the economy or sector depends upon capital formation. India is an agrarian country. However, the contribution to national GDP is not in proportion to the population engaged in it. To alter the situation, to divert the disguised unemployment, to utilize natural resources more sustainably & judiciously, to increase the productivity of components involved in agriculture and allied activities, inter alia to achieve food security and growth rate of four percent in agriculture, capital investment in agriculture is considered one of the major engines of agriculture growth. In view of this while revisiting the Base, the theme of the revisited is Accelerating the pace of capital formation in agriculture and allied sector, and accordingly while making financial projections more emphasis has been given on investment credit. II Specific characteristics of the district based on District Profile Latur is one among the eight districts of Marathwada region of Maharashtra, located in the Western Plateau Region of the State. The geographical area of is 7157 sq. kms and as per 2011 Census, the total population is lakh of which 75 per cent is rural. The literacy percentage of district is 79%. The district is in the assured rainfall zone with average annual rainfall of mm. The economy of is predominantly agrarian. The major Kharif crops are, Soyabean, Tur, Urad, Moong, Maize and Jowar, while Gram is the major crop in Rabi season. Sugarcane, Groundnut and Safflower are other crops grown in the district. The irrigation facilities in the district are mainly from the Manjara Project, Lower Terna project, 8 Medium projects and other Minor irrigation projects. The district is industrially backward and is categorized as D+ category as per the Industrial Policy. However, there are a few Medium and Small Scale Industries like Sugar factories, Solvent Extraction, Dal Mills etc. The district has a well spread banking network. There are 105 branches of commercial banks, 43 of RRB and 112 of DCCB in the district totalling 260 branches. Average population served per branch is III Sectoral trends in credit flow for last three years and the performance under District Credit Plan During the past three years the district has not surpassed targets of Annual Credit Plans under Crop Loan, OFS/MSME and Other Priority Sectors except for However, targets under Agriculture Term Loan could not be achieved. The sector-wise annual targets and achievements during the past three years are given in the table below: (` lakh) Sr. Sector Achievement Achievement Achievement No Amt % Amt. % Amt. % 1 Crop Loan Agri Term Loan 3 Total Agri NFS / MSME Other Priority 1

2 2 Sector Total ACP Sector wise vis-à-vis agency-wise achievements of targets during the past three years are indicated in Annexure II. Sub Sector wise vis-à-vis Agency wise, Ground Level Credit Flow for the past three years are indicated in Annexure III. Agency wise achievement of Priority Sector of ACP during , is indicated in following table. (` lakh) Sector Commercial Banks Maharashtra Grameen DCCB Sr. Bank No Achievement Achievement Achievement Amt. % Amt. % Amt. % 1 Crop Loan Agri Term Loan 3 Total Agri NFS / MSME Other Priority Sector Total ACP As regards achievement under Priority Sector targets for district as a whole, as against the total priority sector target of ` lakh the achievement was ` lakh i.e. 123%. The Sector wise details are given in the table given at pre page. The highlights of the achievement are increased GLC flow under NFS / MSME and OPS sector. The NFS / MSME and OPS sector registered 303% and 137% achievement against the ACP target. The achievement under NFS / MSME is on account of the Investment Credit and Working Capital sanctioned to these units. Major portion of this finance is of State Bank of Hyderabad. As regards Achievements under Agriculture Term Loan, the HDFC Bank, Dena Bank and IOB are the major contributor and surpassed their target. SBI and BoM have also been major contributors for extending term loans to farmers. Highlights of banking benchmarks referred to in Banking Profile. There are 23 banks that are operating in the district with 260 branches, of which 105 branches are of 18 Public Sector and 3 Private Sector Commercial Banks, 43 of Maharashtra Gramin Bank and 112 of Latur District Central Cooperative Bank. Of the 260 branches, 141 branches are operating in rural area, 69 branches in semi urban area and 50 branches in urban area. All 904 villages are covered with the services of the banks. The total deposits and advances as on 31 st March, 2015 were ` lakh and ` lakh. The CD ratio of the district was 84 with the CD ratio of commercial banks being 78, Gramin Bank 72 and DCCB 108. During the year , banks have extended crop loans to 2.67 lakh accounts holders. While revisiting the Base the estimation of physical projections has been need based and revised upward/downward taking into account changes in scale of finance, unit cost, trend of GLC, thrust area, likely development of infrastructure etc. The total revised financial projection for is ` lakh, against projections of ` lakh estimated in base PLP for the same year. The upward revision in financial projections is in the following sub sectors.

3 Crop Loan : Keeping in view changes in scales of finance, cropping pattern etc. the base PLP projections for the year are revisited and revised slightly from ` lakh to ` The share of crop loan in total agriculture loans is 80% and its share in total Priority Sector Loan is 50%. Water Resources: With a view to make optimum and efficient use of available water thrust has been given on Micro Irrigation system. Therefore, the projections for drip and sprinkler systems in base PLP have been re-estimated. The base projections of ` lakh have been revised to ` lakh. The share of the activity in total agriculture loan is 3%. Farm Mechanisation: During sowing, harvesting seasons farmers face labour problems, and even if labour is available the remuneration sought is very high. To overcome labour shortage, to increase productivity, etc. more thrust needs to be given on farm mechanization. Keeping this in view and increased prices of farm equipments, the projections of base this has been revised from ` lakh to ` lakh. The share of activity in total Agriculture loan is 4% and in priority sector share is 2%. Plantation & Horticulture: The district is identified AEZ for Keshar Mango and Pomegranate crops. There is good scope for P&H activity in the district. With a view to increase the ground level credit flow to this sector, the projections estimated in base PLP of ` lakh have been re-estimated at ` lakh. The share of activity in total Agriculture Loan is 3% and in Priority Sector, share is 2%. MSME: The economy of the district is agrarian and the district is facing acute shortage of water for irrigation due to low rainfall during last couple of years. With a view reduce the burden onf Farm Sector and generation of employment under Off Farm Sector, the projections estimated in revised are at ` lakh. The share of activity in total Priority Sector, share is 28%. New Activities : In the light of revised PLP guidelines, credit potentials and new activities like Export Credit, Education, Housing, Social infrastructure etc.have been reestimated in the revised. II New Area Based Schemes introduced / to be introduced The district is receiving inadequate rains during last couple of years resulting into shortage of water for irrigation or over exploitation of ground water. The area under sugarcane cultivation is on decline. Therefore, there is a need to explore another income generating avenues for farmers in the district by utilizing the available water for irrigation in scientific and efficient manner. Keeping this in view, Maharashtra Gramin Bank proposed to formulate an Area Based Scheme for micro irrigation system for cultivation of Quality Vegetables with estimated financial outlay of ` lakh to be implemented in in various blocks of the district. The details are furnished in Chapter 12. Highlights of developments / initiatives having bearing on the flow of credit / market making role of NABARD, innovative banking products have been introduced. 3

4 The concept of Farmers Producers Company, Activity based Groups is becoming popular among the farmers. Bankers need to nurture the concept and come forward for financing these groups for their share capital contribution, investment credit needs, etc. III Critical infrastructure having a bearing on credit potentials of the district There is a continuous drought like situation in the district due to low rainfall during last couple of years. During Kharif 2015, the district received only 200 mm rainfall against the average rainfall of 802 mm. Keeping this in view the projections under water resources have been revised from ` lakh to ` lakh for focusing on use of Micro Irrigation systems for cultivation of various crops. As indicated in earlier para, an Area Based Scheme for micro irrigation system for cultivation of Quality Vegetables with estimated financial outlay of Rs lakh has been formulated in association with Maharashtra Gramin Bank, Regional Office, Latur. Submission of LBR by banks in the district ranged between 95% to 100% during However, many activities where bankers are extending finance are not appearing in the LBR, viz., financing to SHGs, Plantation & Horticulture, non renewable energy sources, etc. Many a times financing to these activities and small finances are marked as other activities. In view of this, it is difficult to assess the credit flow to these activities. Bankers need to take care to enter correct code of each activity, which will enable DLCC to take review at BLBC and DLCC meetings. 4

5 Broad Sector wise PLP projections Appendix A to Annexure I (` Lakh) S.N. Particulars PLP Projections A Farm Credit i Crop Production, Maintenance and Marketing ii Term Loan for agriculture and allied activities Sub total B Agriculture Infrastructure C Ancillary activities I Credit Potential for Agriculture (A+B+C) II Micro, Small and Medium Enterprises III Export Credit IV Education V Housing VI Renewable Energy VII Others VIII Social Infrastructure involving bank credit Total Priority Sector (I to VIII)

6 Appendix B to Annexure I Summary of Sector/Sub Sector wise PLP projections (` Lakh) S.N. Particulars PLP Projections I Credit Potential for Agriculture A Farm Credit I Crop Production, Maintenance and Marketing Ii Water Resources Iii Farm Mechanisation Iv Plantation and Horticulture (including Sericulture) V Forestry and Waste Land Development Vi Animal Husbandry Dairy vii Animal Husbandry Poultry viii Animal Husbandry Sheep, Goat, Piggery etc Ix Fisheries X Others Bullock, Bullock cart etc Sub total B Agriculture Infrastructure I Construction of storage facilities (Warehouse, Market yards, Godowns, Silos, Cold storage units/cold storage chains) ii Land development, Soil Conservation, Watershed development iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/fertilizers, Vermi composting) Sub total C Ancillary activities I Food and Agro Processing ii Others (Loans to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business Centers, Loans to PACS/FSS/LAMPS, Loans to MFIs for on lending) Sub total Total Agriculture II Micro, Small and Medium Enterprises I MSME Working capital ii MSME Investment Credit Total MSME III Export Credit IV Education V Housing VI Renewable Energy VII Others (Loans to SHGs/JLgs, Loans to distressed persons to prepay non-institutional lenders, PMJDY, Loans to state sponsored organizations for SC/ST) VIII Social Infrastructure involving bank credit Total Priority Sector

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