Page 34 - BANKING FINANCE JUNE 2016

ARTICLE

Sl Bank's name March June Sept Dec Growth Challenges under Agricul-
No 2015 2015 2015 2015 over tural Lending:
March (%)
 Climate change (El Nino Effect) -
5 Canara Bank 58868 60924 63541 65061 10.52 Many parts of the country
registered drought consecutively
6 Central Bank Of India 35957 35370 36500 35955 Negative for the second and third years
and moreover some parts faced
7 Corporation Bank 19675 24819 24675 25439 29.29 flooding due to heavy rain which
created loss of crops to farmers.
8 Dena bank 12312 14223 14655 15254 23.89
 Out of 148 million hectares of
9 Indian Bank 23679 23237 22119 NA NA cultivable land in India, only 40%
of the same is coming under
10 Indian Overseas Bank 29236 30370 27864 26903 Negative irrigated category and
agriculture in remaining parts
11 Punjab National Bank 60006 57314 58091 60132 0.20 purely depends on the rainfall

12 State Bank Of India 158048 115813 118419 121102 Negative  India does not have adequate
storage structure for storing the
13 Syndicate Bank 26205 25713 24920 25888 Negative harvested produce and selling the
same for an optimized price.
14 Union Bank of India 31584 36209 36158 36926 16.91 Hence, farmers are going for
distressed selling and getting very
15 Vijaya Bank 7546 7734 12502 12859 70.40 low price. Due to this, farmers lacks
interest towards agriculture and
The above table clearly indicates that public sector banks are not in a position start migrating to urban centres
to improve their growth under agricultural lending and banks having large seeking alternate employment
customer base like State bank of India, Bank of Baroda, Central Bank of India,
and Indian Overseas Bank have registered negative growth. Reasons may be  Young India towards agriculture
due to one or the other; the banks should understand agricultural lending is needs a lot of motivation
also one of the viable, profitable business propositions for the banks in the
present context of profitability and capital adequacy norms.

Bank loans to Agriculture as Percentage of Non food
Credit:

 Nearly 80% of the farmers in
India comes under marginal and
small category, not in a position
to carry out high tech intensive
farming

 Improper marketing system for
the farmers and getting good
optimum profitable price of
harvested produce

 Crop loan waiver scheme

announcement by central and

State Government earlier

affected the financial discipline

and repayment ethics among the

Source: Mint dated 14.03.2016 "The dates are at the end of March except for farmers community expecting the

2016 (as of 22.01.2016) same in future

34 | 2016 | JUNE | BANKING FINANCE

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