Bhubaneswar: While the State Government has set an ambitious target for the bankers to increase the average loan size in WSHG lending to Rs.4 lakhs, the Sub-Committee of SLBC on credit flow to SHGs with Secretary, Mission Shakti Sujata R Karthikeyan as the Chairperson is pursuing the big target.
With Rs.1.7 Lakh Per SHG was the Credit Flow earlier, thanks to the overdrive of the Sub Committee, now it has touched Rs.3.78 lakhs. State Target for Credit for SHG will be achieved soon, officials say.
The Department of Finance in July set up the Sub-Committee will look into the credit flow to WSHGs, monitoring the Mission Shakti Loan, State Interest subvention, facilitating the Business Correspondent Agent (BCA) system, implementing the Mission Shakti Scooter Yojana and conducting Financial Literacy programs etc. and provide an institutional mechanism for interfacing with the banks for credit linkage to WSHGs in the Rural and Urban areas, officials said.
The Sub-Committee meets at regular interval and at least two weeks before the quarterly SLBC meetings to discuss and sort out operational issues pertaining to credit linkage to SHGs.
The minutes of the said sub-committee meeting is being approved by the Chairperson and circulated among all the stakeholders concerned.
Further, any policy decision which cannot be resolved at the Sub-Committee level, the same shall form a part of the agenda for next SLBC meeting.
State Government has identified banks to sign MoU with Mission Shakti Department for engaging WSHG members as Banking Correspondent Agents.
13 banks have already signed MoU and 9 other banks have not signed the Pact.
Major banks viz. Bank of Baroda, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, IDBI Bank, IndusInd Bank and Federal Bank have not signed the MoU yet, said sources. These banks are expected to sign the pact soon.
In the meantime, Commercial Banks have improved the Credit Extension in the State, for which Credit-Deposit Ratio has improved a lot.
CD Ratio is now stands at 81.5 Percent as on 31 June, 2023, which was 60 Percent in March 2020.
The Commercial Banks in the State have been able to achieve 100 Percent of the Annual Credit Plan (ACP), which is an all time record.
While ACP was Rs.1.35 Lakh Crore, it was achieved fully, for which Vishal Dev, Principal Secretary Finance has appreciated the efforts of the Banks.
According to sources Commercial Banks disbursed loans of Rs.45,994.72 crore to Priority Sectors till June of financial year 2023-24 against the annual target of Rs.1,60,280.22 crore. Thus, the achievement under ACP is 28.70 percent.
According to official data, the Government has set a target to disburse Rs 58,776.16 crore loan in agriculture sector during the current financial year, of which Rs 17,540.25 crore (29.84%) was achieved till June of this year.
Similarly, the banks in the State have disbursed loans of Rs 23,156.93 crore to MSME sector against the annual target of Rs 72,297.84 crore, which is 32.03 percent.