The Reserve Bank of India (RBI) on Monday urged state-run banks to achieve the minimum target 18 per cent agricultural lending of their net bank credit by the end of this fiscal.In a meeting with bankers, chaired by RBI deputy governor Vepa Kamesam, the central bank reiterated that banks should focus on agricultural and rural lending, and was categorical that banks should tap so-far untouched areas to meet the target.The meeting was called for by the central bank as there was constant pressure from the Centre and various parliamentary committees on banks’ meeting the minimum target. On Monday, the RBI met top officials from state-run banks. It will meet private bank chiefs on Tuesday. Sources who attended the meeting, pointed out the Centre’s stipulation on achieving the 18 per cent target by end-March 2003.In the meeting, bank chiefs asked RBI not to use the previous fiscal as the base for the net bank credit figure. They urged the central bank to link it with previous fiscal’s agriculture credit disbursement. However, the RBI is unlikely to follow this suggestion, bankers was categorical.The RBI has also suggested that banks meet the target by way of providing indirect endings, if they are falling behind the 4.50 per cent limit of indirect agri-lending.During 2000-2001, for state-run banks, total agricultural advances constituted 15.65 per cent of net bank credit, of which 4.60 per cent is through indirect advances. The scene is gloomier in the case of private sector bank where agricultural advances was at 9.55 per cent, where indirect lending was as high as 5.53 per cent.Following the RV Gupta committee’s recommendation, the RBI had stipulated a special agricultural plan. According to this stipulation, banks have to achieve 25 per cent growth in agri-disbursements over the previous year. In general, bankers say, most banks have been adhering to the target.
