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COVER STORY
AGRICULTURAL
LENDING -
A Commercial Viable
Profitable Business Proposition
Introduction: Despite that, India is struggling to achieve the growth rate under Agriculture.
In 12th five year plan, the growth rate under agriculture is fixed as 4%, but so
Agriculture is a great Indian culture. far the achievement is 1.1%. Though Indian agriculture is full of vagaries of
Agriculture is backbone of our monsoon, institutional credit towards agriculture is an important factor and
country. Nearly 70% of Indian need of the hour.
population lives in Rural India. There
are about 625000 villages in India. Serious alternative avenues of supporting the farmers financially is to be
Approximately 65% of the people looked into not only to harvest the factors of production viz., land, labour,
depend on Agriculture. Contribution capital and Management in an efficient way which enables Agriculture
to Gross Domestic Product (GDP) production and productivity for a country but, to maintain qualitative
from agriculture is 14%. Nearly 60% profitable business proposition for a banks.
of the people get employment from
the agricultural sector. Trend under Agricultural lending:
About the author No one can deny that public Sector Banks (PSBs) dominated in extending
agricultural credit since beginning. Here is the position of agricultural
advances (in crores) of various PSBs.
Sl Bank's name March June Sept Dec Growth
No 2015 2015 2015 2015 over
March (%)
1 Andhra bank 19892 20273 20889 21992 10.55
U Sethupitchai 2 Bank of Baroda 37403 39502 35596 34825 Negative
Chief Manager (Faculty),
3 Bank of India 43183 45949 43261 45230 4.74
Union Bank of India
Staff College, Bangalore 4 Bank of Maharashtra 15521 15345 NA NA NA
BANKING FINANCE | JUNE | 2016 | 33
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