78
Table 4.11 provides a summary of the evolution of changes over the
period covered. As may be seen therein, the percentage share of loan accounts
above
`
2 lakh has consistently risen froma low of 10.3% inMarch 1992 to 34.1%
in March 2004. This change had been very rapid in the 1990s. Interestingly,
the period since doubling of bank credit, which has seen an expansion in the
number of loan accounts, has also experienced an equally rapid jump in the
share of large size loans deterioration in the distribution of agricultural credit.
The proportion of loan accounts with limit of
`
2 lakh and above has further
shot up from 34,1% in March 2004 to 52.0% in March 2011.
The recent period seems to have transformed the banks – farmer
relationship beyond recognition. Between March 2004 and March 2011, the
number of agricultural loan account holders having credit limits of
`
1 crore and
above has increased near eight fold from 4,652 to 17,216; their loan amounts
have likewise risen from
`
25,238 crore to
`
122,860 crore.
C. Bank Credit and Land Size
An important aspect of public policy has been to goad banks to provide
special focus on small andmarginal farmers in their credit delivery programmes.
As explained in a subsequent section, such vulnerable sections of farmers, along
with agricultural labourers, are covered under ‘weaker sections’ for which there
is a separate target of 10% of net bank credit. Besides, there were instructions
Table 4.11: A Summary of Size-Distribution of Agricultural Credit
(As Percentage of Total Direct Finance for Agriculture)
Year/Range
`
25,000 & Less Above
`
25,000 &
upto
`
2 lakh
`
2 lakh and less
Above
`
2 lakh
(1)
(2)
(3)
(4)=(2+3)
(5)
March 2011
6.7
41.3
48.0
52.0
March 2010
8.1
44.9
53.0
47.0
March 2009
10.7
46.1
56.8
43.2
March 2008
13.0
44.0
57.0
43.0
March 2007
14.3
41.8
56.1
43.9
March 2006
18.1
42.7
60.8
39.2
March 2005
22.9
43.8
66.7
33.3
March 2004
2.52
40.7
6.59
34.1
March 2002
34.3
42.7
77.0
23.0
March 1997
53.9
29.4
83.3
16.7
March 1992
61.3
28.4
89.7
10.3
Source:
RBI,
Banking Statistics: Basic Statistical Returns of Scheduled Commercial Banks in India,
March 2011 (Vol. 40) and earlier issues. See also Annexure B.
