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MANGALORE, March 28

THE 2002-2003 credit plan for the Dakshina Kannada district of Karnataka, put together by the Syndicate Bank, the lead bank of the district, has envisaged a total credit outlay of Rs 840.16 crore. This is Rs 50.27 crore higher than last year's estimate of Rs 789.88 crore.

According to estimates released by the district office of the Syndicate Bank here, the bank has proposed a credit outlay of Rs 207.42 crore in the district followed by Canara Bank with a proposed outlay of Rs 139.48 crore. South Canara District Central Co-operative Bank (Rs 128.89 crore), Corporation Bank (Rs 80.57 crore), State Bank of India (Rs 74.35 crore, Karnataka Bank (Rs 55.36 crore) and Vijaya Bank (Rs 41.89 crore) have also estimated their outlays for the following financial year.

As an indication of the credit priorities of the banks, the primary sector was seen to have a credit potential of 19 per cent of the total outlay while non-priority sector advances were pegged at 33 per cent, a decline of 8.44 per cent over the current outlay.

Agriculture and allied activities have an estimated outlay of Rs 156.47 crore. Crop production credit constituted Rs 97.39 crore. The small scale and tiny sectors have been given a share of 22 per cent at Rs 187.06 crore. The tertiary sector has got a share of 26 per cent of total credit outlay with a projection of Rs 219.24 crore. Education (Rs 11.65 crore) and housing (Rs 82.78 crore) got the highest share in this sector. Rs 562.82 crore (67 per cent) of the total outlay has been earmarked for priority sector advances while non-priority sector advances stood at Rs 277.33 crore.

This readjustment of priorities notwithstanding, the plan indicates a 6.36 per cent growth over the current plan and credit outlay for the priority sector indicated a growth of 15.10 per cent.

The plan also envisages a continued thrust to finance `eligible beneficiaries' under various Government schemes. A need has been felt to `credit-link' self-help groups.

The district presently has over 9,000 self-help groups of which nearly 50 per cent have been `credit-linked' by banks.

It is estimated that all the remaining `eligible' self-help groups would come under the purview of the banking industry by the end of the next financial year. The plan also envisages a credit outlay of 6 per cent of the total credit outlay to finance women's self-employment initiatives.

As an indication of the health of the banking industry in the district, the district-level review committee meeting on the banking sector discovered that the total banking business in Dakshina Kannada had crossed Rs 6,398 crore as of December 2001. Total deposits stood at Rs 4,364 crore and advances at Rs 2,033.13 crore. This from a total of 332 bank branches in the district of which 189 operate in rural and semi-urban areas.

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