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P.S. Sundar

The bank would also focus on allied rural activities such as cattle rearing, poultry, warehousing, transportation, farm mechanisation, irrigation and marketing.

COONOOR, Dec. 10

BANK of India has decided to activate its participation in agri-business in the next four months.

"In our zone alone, we intend to advance some Rs 20 crore to agri-business in the next four months. Now that the rains have come, it is time to concentrate on rabi crop lending. Sugarcane is a promising proposition," Mr K. Pothiraj, zonal manager of Coimbatore zone, told Business Line.

He said that the bank would also focus on allied rural activities such as cattle rearing, poultry, warehousing, transportation, farm mechanisation, irrigation and marketing.

"These sub-sectors are very important for the survival of agriculture. We are quite certain that they need to be strengthened for a healthy rural economy.

But, now is the right time to concentrate on this because of the arrival of the rains ending prolonged drought in the villages," he said.

Since the Coimbatore zone comprises 65 branches in 18 districts, the bank's agriculture lending profile has to be designed suiting the agri-base of each district.

"We have already worked out the probable methodology. Thus, for the Nilgiris district and the Anamalais sector of Coimbatore district, our focus would be on tea industry," he said.

Mr Pothiraj disclosed that the bank had conveyed its interest to participate in the financial matters relating to the operation of the new tea auction centre proposed by the Tamil Nadu Government in Coonoor. "The Government does not propose to investment funds, but it plans to use bank finance. So, we are keen to help the small tea sector for whose benefit this auction centre is being formed," he said.

Besides, the bank has proposed to advance to individual tea planters, traders and factory owners.

"We are one of premier banks operating in the tea industry belt for long. So, we have a relatively good idea about the difficulties faced by the industry and are certainly interested in lending whatever support we could for its revival. We have, therefore, invited planters and factory owners and businessmen to contact us with their proposals for loans," he added.

Dismissing the contention that the tea industry had created non-performing assets (NPA) for the bank, he said that despite the poor economic conditions obtaining with the tea industry for the last three years, the direct NPA created by it was quite minimal.

"Of course, the overall economy in the tea belts had suffered a lot because of poor returns of the tea industry. This indirectly affected our business in the belt," he explained.

Mr Pothiraj also said that the bank would be happy to step in for tea factory modernisation as per the scheme run by the Tea Board.

Tea companies could also hope to benefit from the corporate banking branch the bank would be opening soon at Coimbatore, he said.

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