Bank of Maharashtra Low on Farm Loan

Thirteen public sector banks, including the Bank of Maharashtra, Bank of Baroda, Central Bank of India and Union Bank of India, have failed to achieve their annual target for farm sector lending in the last fiscal.

 

Corporation Bank, the United Bank of India, Dena Bank, Vijaya Bank, Bank of Maharashtra, Oriental Bank of Commerce and Punjab and Sind Bank also missed the target, according to a report by the Reserve Bank of India.

Only 14 lenders could achieve the target of disbursing 18 per cent of the net bank credit to agriculture during 2008-09.

Among the SBI associates, the State Bank of Mysore, State Bank of Patiala and State Bank of Travancore could not meet the stipulated farm credit target.

Meanwhile, the RBI is planning to introduce tradeable certificates to help banks to meet the mandatory priority sector lending targets. Banks have to lend 40 per cent of their advances to sectors such as agriculture, small-scale industry and the weaker sections. 

By Telegraph