NABARD has steered itself into a premier bank focussing on Agri, Rural Infrastructure financing, besides support to Self help groups [SHGs] for various livelihood and income generating programmes and had sanctioned almost Rs 12, 648 crore until now to the Odisha Government, says Shri S K Kale, Chief General Manager, NABARD, Odisha Regional Office. He also highlighted certain grey areas pertaining to the banking sector, while in a free-wheeling chat with Sandeep Pattnaik and Brahmipriya Samantray. Excerpts of the Interview mentioned below:
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1. Sir, tell us something about your professional journey.
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Ans. Over the thirty-odd years of my banking career, I had worked in different capacities. I joined as a probationary officer in Bank of Maharashtra. In NABARD, I have exposure to different segments like corporate planning, financial inclusion, development policy etc. I was also in charge of the bank’s Andaman Nicobar office.
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2. What is the overall credit growth you are expecting in the current fiscal year across verticals?
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Ans. We have achieved overall 35% growth in disbursements of Rs 8000 crore in 2014-15 FY over 2013-14. Total sanctions were to the tune of Rs 10000 crore. We expect similar growth in the current fiscal year also.
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3. Which are the major thrust areas? For financial inclusion what are your initiatives?
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Ans. We are conducting various financial literacy camps with the help of NGOs through wall paintings, folk theatres and street play etc. So far, 25000 villages are covered under financial literacy. Among the thrust areas financial support to 90 Co-operative banks, 15 Regional Rural Banks [RRBs] (at district level), 105 FLCs (at block level).
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4. You are also into CAPEX financing to State Corporations. Please tell us something about that?
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Ans. We have launched a new window called Nabard Infrastructure Development Fund (2 years back) through which, Investment Credit to State Corporations are to be disbursed. However, nobody has availed the credit facilities so far in the state.
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5. Which are the other areas of financing by the bank?
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Ans. We have funded various development projects through RIDF, WADI development, loans to State Government, Potential Linked Credit Plan for Agri and allied sectors etc. NABARD has so far sanctioned Rs.12648 crore to the Government of Odisha for implementing 1.98 lakh projects under various sectors such as irrigation, rural connectivity, animal husbandry, infrastructure development, Jetties/ Passenger waiting halls for inland waterway transport and rural drinking water supply system etc.
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6. Banks are reeling under huge bad loans. How NABARD is tackling the challenge? Which are the other grey areas before the sector?
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Ans. NPA in the State (hovering at more than 10% of the advance) remains above the national average, which is a concern. We are strictly adhering to strict exposure norms like Capital Adequacy Ratio and other such parameters. Besides being a refinancing institution, our exposure to risk default is negligible. Our recovery rate at NABARD is above 90% in case of SHGs and JLGs. Among the other grey areas are, lack of monitoring by banks, discrepancy in end use of funds, lack of entrepreneurship etc. These issues were raised at recent SLBC meeting.
