Collector calls for implementation of annual credit plan of Rs 52,600cr for 2025-26 by Jan-end
Nashik: District collector Jalaj Sharma on Tuesday called for expedited implementation of Rs 52,603-crore credit plan for 2025-26 financial year, aiming for its completion before Jan-end next year, amid concerns raised by bankers regarding the increasing number of non-performing assets (NPAs) related to crop loans.
The annual credit plan is a yearly financial roadmap that outlines credit distribution for different sectors in a district. It is implemented and monitored by the district administration, in collaboration with nationalised, private and cooperative banks, to support economic development and growth.
The administration on Monday announced a Rs 52,603-crore annual credit plan for 2025-26, representing a Rs 9,642 crore increase from the previous year's plan, which had a 109% achievement rate.
In the current plan, the administration has reserved Rs 4,500 crore for crop loans, Rs 10,603 crore for the overall agriculture sector and Rs 17,200 crore for micro, small and medium enterprises.
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Collector Sharma said, "The district annual credit plan has been prepared keeping in mind its credit potential and told the bankers have been told to disburse the specified amount to various sectors as per the plan, following decisions made by the administration and representatives from the Reserve Bank of India, lead bank (Bank of Maharashtra), public and private sector banks, govt departments and people's representatives.
The bankers have been directed to achieve their targets by Jan-end next year."
The annual credit plan for FY 2024-25 was Rs 42,961 crore and the banks disbursed credit of Rs 47,115 crore. Last year's crop loan disbursement was Rs 3,718.43 crore.
According to a senior official, non-collateral loan limits have been raised from Rs 1.6 lakh to Rs 2 lakh. Additionally, Centre has announced an increase in crop loan limits from Rs 3 lakh to Rs 5 lakh (pending notification) and bankers have been instructed to follow these norms to benefit farmers, the official said.
The bankers, both public and private, have expressed concern over the disbursement of crop loans, especially the unsecured ones, given that 25% of the loan amount has entered the NPA bracket. "The RBI guidelines on NPA are very strict. There is a rising number of NPAs from the farm sector. The bankers feel they are caught between two grinding wheels. On one hand, there are limitations to the banks in the conduct of loan recovery, and on the other, RBI norms are very strict.
It is a difficult situation," the official said.
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