India Region

NABARD estimates a credit potential of Rs.2,58,000 crore in Madhya Pradesh for 2023-24 for Priority Sector Lending

25 January 2023, Madhya Pradesh: NABARD has assessed the credit potential of Rs.2,58,598 crore under the Priority sector for banks in the State of Madhya Pradesh for the year 2023-24, which is about 6% higher than the previous year. Mr. Jagdish Devda, Finance Minister,  Madhya Pradesh released the State Focus Paper for the year 2023-24 during the “State Credit Seminar” organized by NABARD in, Bhopal on 24 January 2023. A document published by NABARD on the role of agricultural credit and its key issue for Madhya Pradesh to achieve the $ 550 billion economy to help achieve India’s $ 5 trillion economy was also released.

Mr. Neeraj Nigam, Regional Director, Reserve Bank, India, Bhopal; Mr. Nirupam Mehrotra, Chief General Manager, NABARD participated in the seminar.

Finance Minister Mr. Dewda appreciated the work done by NABARD to increase the economy of the state and called upon the representatives of banks and state government to work together so that the rural and agricultural sectors of the state can be developed.

Ms. Nirupam Mehrotra, Chief General Manager, NABARD highlighted the potential for growth in agriculture and various related sectors and informed that the total potential available for financing through bank credit for the year 2023-24 is estimated at Rs. 2,58,598 crore, which is 6.43% higher than the estimates of 2022-23 (Rs 2,42,967 crore). Sustainable agriculture, increase in farmer’s income, creation of capital formation in agriculture, and focus on the development of agriculture-related activities are other important underlying grounds in the prospective assessment for FY 2023-24.

The credit potential of the priority sector projected in this document, will certainly be a useful guide for banks in formulating their annual credit plans for the year 2023-24 and will, accelerate the development of the state by creating an environment conducive to appropriate decisions and policies by the state government, policymakers, and stakeholders. With all these efforts, the state of Madhya Pradesh can be made a $ 550 billion economy.

A brochure highlighting “NABARD’s initiatives in promoting millets in MP” was released. 

Mr. Ashok Barnwal, ACS also highlighted the potential areas of growth concerning the agriculture sector in the state and hoped that banks should come forward to financing long gestation crops including bamboo cultivation.

Mr. Neeraj Nigam, Regional Director, Reserve Bank of India appreciated the efforts of NABARD in preparing a comprehensive document from block to state level, which would help in setting credit targets for the Banks of the state. He exhorted the Public Sector Banks to re-strategize their Business Models in light of the newer agencies that are entering the agriculture credit space. Further, Banks need to take quick decisions and also work on financial literacy. Mr. Binod Kumar Mishra, Chief General Manager, State Bank of India appreciated the intellectual ability, foresight, experience, and ability in preparing the potential and way forward to reach the targets for the priority sector in the state. Mr. Tarsem Singh Zeera, SLBC Convenor assured that all banks will work together to achieve this goal.

Also Read: Millets & Organics -2023: Three-day International Trade Fair starts at Thripuravasini, Bengaluru

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