Page 38 - BANKING FINANCE JUNE 2016

ARTICLE

issue appraisals also. The appraisal reports of this  Proactive strategy :

innovative arm of the Bank are accepted by all Creating awareness and canvassing the applications

the major Banks and Financial Institutions. from the farmers one month before the agricultural

 Agricultural Innovation Centre (AIC) today, is one season starts so as to process well within the time or
of the premier consultancy outfits in the country exactly the season starts for timely credit delivery.
and is a "One-Stop-Shop" for all the agricultural This is very important in Agricultural advances.

entrepreneurs looking for investment in  Horizontal communication:

agriculture and related projects, and has carved All the staff members are in a position to guide the

out a distinct name for itself in the market. customers/farmers with respect to all products of the

bank including agricultural products. For this, Branch

 Suitable customer need based focused delivery Managers & other officers should conduct fortnightly
model: Delivery model integrating Backward and meeting in their branch just for updating of products
forward linkages of agricultural farming should be of the bank to other staff members.

designed with the integration of input suppliers,  Coordination with NABARD/NHB/other Govt.

technical, financial, infrastructural skills, and Department:

marketing arrangements etc like contract farming, Branch Managers/ officers handling agricultural

bipartite or tripartite arrangement so as to create lending portfolio should be in a position to maintain

win - win model of agricultural finance. very good relationship and liaison for linking the needy

 Cross selling within the agriculture: First, farmers are eligible farmers to various government sponsored
very much interested in availing only crop loan that schemes for implementing various agricultural related
too up to Rs. 3.00 lacs just to avail the subvention projects, various value chain concepts, contract
benefit even though they are eligible for more than farming etc. Support from respective controlling
Rs. 3.00 lacs requirement based on their land offices is also very important.

holdings.  Formation of Area specific Schemes by the banks to

Secondly, bankers failing in ascertaining entire need the farmers and involving them in reaping the benefits
of a particular farmer and thereby other products out of the scheme thereby realization of
under agriculture can be given to the needy farmers. disadvantages of availing credit from informal sources
to be increased to a large extent.
This is totally due to lack of knowledge at both levels.
Branch Managers and other officers handling Conclusions:

agricultural advances should market the features of Bankers should see Agricultural lending as a preferred

other agricultural products in an effective manner and sector finance rather than last resort avenue. It should be

should be implemented. seen as a business opportunity rather than a compliance

 Suggestions as per the report of the advisory function by all the banks and financial institutions. Support
given by the way of policy guidelines and Budget
committee on the flow of credit to Agriculture in allocations are to be utilized in a positive profitable way of
2004 is to be strictly implemented by the banks in contributing more to the nation from agricultural sector.
India.

 Inculcating marketing mindset: Rather than discouraging and de-motivating the farmers,
role of bankers lies in linking them into a viable agriculture
All bankers should have a mindset that they are all business model and deliver the financial support not only
directly and indirectly marketing employees without increases stable bank's growth but make the country a
which banking cannot have a profitable business. They prosperous one. "Let us have a strong trust that growth in

should understand that marketing is in and out of our agriculture solves all other problems of a nation". "Let us

business. Executives/Officers from controlling offices, salute to the farmers and support them to connect

while visiting to branches staff meeting can be physically, electronically and knowledge wise so as to

conducted and this issue can be addressed. attain economically connected India". 

38 | 2016 | JUNE | BANKING FINANCE

Copyright@ The Insurance Times. 09883398055 / 09883380339