NABARD sanctions Rs 600 crore for crop loans
NABARD-Kerala Regional Office has sanctioned a credit limit of Rs 600 crore for the year 2012-13, to Kerala State Cooperative Bank (KSCB) to enable financing of Crop loans by the 13 DCBs.
NABARD has also written to KSCB and all DCBs in the state to take measures for mobilising additional capital to comply with licensing norms of RBI on a sustainable basis, an official press release said here today.
Further, the bank has been advised to improve their financial strength and continue to comply with the eligibility norms in order to sustain credit flow from NABARD at concessional rate of interest.
NABARD proposes to provide an aggregate limit of Rs.1085 crore for Seasonal Agricultural Operations during 2012-13 to cooperative banks subject to their performance.
NABARD was unable to sanction credit limit to KSCB for the past few years in the normal course as the bank was not complying with the eligibility norms.
However, during the year 2011-12, NABARD as a special case, had sanctioned a credit limit of Rs. 500 crore based on the Guarantee issued by the Government of Kerala.
The State Government took initiative and contributed to the extent of Rs.136 crore towards share capital of the bank during 2011-12. Further, member District Cooperative Banks contributed additional share capital amounting to Rs.80 crore. These measures helped the bank to comply with statutory requirements and the eligibility norms, though marginally.
Therefore, NABARD has resumed sanctioning credit limits to KSCB after confirming the compliance through the statutory inspection of the bank.