(a) whether as per Reserve Bank of India(RBI) guidelines, batiks have to deploy 40 per cent
of the total Net Bank Credit (NBC) in the priority sector;
(b) if so, the details thereof;
(c) whether it is also a fact that actual credit disbursement by most of the banks was far
short of stipulated level;
(d) if so, the details of total agricultural advances given by banks as on date; and
(e) the steps taken to achieve the NBC targets?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) & (b): Yes, Sir. Reserve Bank of India (RBI) have stipulated a target of 40% of Net Bank
Credit (NBC) for lending to the priority sector by domestic scheduled commercial banks both in
the public and private sector. Within this, sub-targets of 18% and 10% of NBC have been
stipulated for lending to agriculture and weaker sections respectively.
(c) & (d): The advances granted to various sectors under priority sector by the public and
private sector banks as on the last reporting Friday of March, 2003, 2004 and 2005 are furnished
below from which it will be observed that the target of 40% stipulated for priority sector
lending has been achieved :
Public Sector Banks: (Rs. in crore)
As on the last reporting Friday of March 2003 March 2004 March 2005 Total priority sector advances 199786 (41.2%) 244456 (43.6%) 307046X42.8%! Total advances to agriculture 70501 (14.5%) 84435 (15.1%) 109917 (15.3%)
Private Sector Banks: (Rs. in crore) As ob the last reporting Friday of March 2003 March 2004 March 2005 Total priority sector advances 36648 (44.1%) 48920 (47.3%) 69886 (43.6%) Total advance.« to agriculture 9924 (12.0%) 14730 (14.2%) 21636 (12.3%)