Reflecting the slowdown in the state economy, the National Bank for Agriculture and Rural Development (NABARD), is estimated mere three per cent increase in the state’s credit potential for 2020-21.
Goa’s credit potential for the coming financial year is estimated at Rs 7,700 crore as against Rs 7,458 crore for the current year. As per the projections prepared by NABARD the bulk of priority sector lending potential is in the MSME sector (52 per cent) followed by housing (20 per cent). The potential for agriculture lending is estimated at 14 per cent and export credit at 6.7per cent.
With NABARD estimating three per cent growth in the average credit by banks in the state, it indicates business is in the slow lane as there is limited prospects for lending.
Estimating the credit potential is an annual exercise undertaken by NABARD in each state. The credit potential t acts as road map to banks for extending loans to important sectors and for government departments for providing funds necessary infrastructure works
NABARD organised the state credit seminar on December 6. The programme was attended by the Chief Minister, Pramod Sawant, Kamakshi S Pai, general manager, NABARD, Daulat Hawaldar, secretary finance, BK Mishra, regional director, RBI- Mumbai, Sanjay Kumar, general manager, SBI, local heads of banks, officials from directorate of agriculture and other financial institutions.
During the occasion the state focus paper was released with Hi-tech Agriculture as the theme. Appraising the government of ongoing project progress , Pai said that, NABARD has been supporting the state by creating infrastructure in agriculture, social sectors and rural connectivity sector.
Projects under the Rural Infrastructure Development Fund (RIFD) includes command area development works, rural drinking water supply, public health centers, roads and bridges, solid waste treatment and construction of bio-digester toilets for making the state ODF.
Officials revealed that, NABARD is also supported government departments such as the ICAR, BITS Pilani, Goa, World Trade Center, agriculture colleges, banks and government schools for various development activities such as financial literacy and motivating rural youth towards agriculture. Digitisation of self-help groups is a major ongoing project of NABARD.