(a) whether private and foreign banks are reluctant in advancing credit to agriculture
sector;
(b) if so, the reasons therefor; and
(c) the details of the loan to agriculture sector vis-a-vis other sectors advanced by
these banks during the last three years, year-wise ?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI P.CHIDAMRARAM)
(a) to (c): A Statement is laid on the table of the house.
Statement referred to Parts (a) to (c) of Lok Sabha Starired Question No. 184 to be
answered on 3rd March, 2006 regarding Credit to Agriculture Sector, tabled by Shri Kashiram
Rana and Shri V.K. Thummar.
(a) to (c): A target of 18% of Net Bank Credit .has been stipulated by Reserve Bank of
India for lending to agriculture by domestic scheduled commercial banks, both in public and
private sector. As regards lending to agriculture by foreign banks, no special target for
agriculture is stipulated in view of the fact that the foreign banks have no rural/semi
urban branch net work. The advances to agriculture and other sectors by Private Sector Banks
and Foreign Banks are as under:-
(Rs. Crores) Private Sector Banks Foreign Banks As on the last March March 15ept.2005 March March Sept.2005 reporting Friday of 2004 2005 (Provisional) 2004 2005 (Provisional)
Total Priority 48920 69384 74734 17960 23843 23895 sector advances
Total advances 14730 21475 20448 137 84 84 to agriculture
SSI Advances 7590 8668 8701 5307 6906 6320
Other Priority 26600 39241 45585 12516 16853 17491 Sectors