The Potential-linked Credit Plan (PLP) for 2021-22 prepared by NABARD has assessed a credit potential of ₹ 8,668.44 crore for Virudhunagar district, with a projected growth of around 4% more than the projections for the current year.
The PLP forms the basis for finalization of the Annual Credit Plan (ACP) of the district.
Collector R. Kannan released the PLP during the district consultative committee meeting held here on Thursday. District Development Manager, NABARD, B. Rajasureshwaran, and Lead District Manager (LDM), K. Shanmugavel, were present.
Collector advised banks to allocate more funds for agriculture as there is good potential to promote farm mechanisation, micro irrigation systems, animal husbandry sector.
Based on the potential estimated in the PLP, a background paper will be circulated by the lead bank, along with the block-wise / activity-wise potential identified in the plan. Banks will prepare their branch level credit plans so as to finalize the Block Credit Plans and then District Credit Plan for the year 2021-22.
Mr. Rajasureshwaran said that the district has good banking network and the overall credit-deposit ratio of all the banks in the district during 2019-20 was 100%.
Highlighting the sector wise credit plan, he informed that the PLP projection is 22% more than the ACP target for 2020-21 which can be attributed to the national priorities of Government of India to scale up lending to the various sectors of the economy, the statement said.
The share for agriculture sector in the PLP estimates for 2021-22 is ₹ 3,445.89 crore, with farm credit estimated at ₹ 2,971.29 crore. Keeping in view the recent policy changes of Centre to push the MSME sector, an amount of ₹ 3,274.42 crore has been estimated for the district.
Mr. Shanmugavel requested the banks to utilize the plan document for achieving their targets.
District coordinators of all the banks in the district and officials from various Government Department took part.