146
As shown in Chart 17, in respect of commercial banks, the share of
indirect lendings in total lendings has steadily improved from about 6.5% in
1987-88 to 26.5% in 2002-03; interestingly, thereafter there has been a relative
stagnation in this share at around 28%, with the share of direct lendings falling
from about 94% to 72% and ruling at that level in the recent period [Annexure
N(i)]. What seems to have worked in favour of direct lendings to farmers by
commercial banks has been the policy of doubling of bank credit for the
agriculturists after 2004-05.
Contrariwise, cooperatives have a large share of over 71% in the form
of indirect lendings. Though cooperatives have also participated in the policy
of doubling of bank credit, their share of indirect credit had shown only a
fractional decline from the peak of 76.7% in 1990-2000 to 71.7% in 2004-05
and remained stuck at that level (71.7%) even in 2007-08. In the early 1990s,
the indirect share was around 26%. In other words, if commercial banks lend
about 28% of their credit issued as indirect credit, cooperatives lend about
72% as indirect credit. This ratio had indeed shot up in 1999-2000 after the
inclusion of the data for SCARDBs and PCARDBs, as shown in Chart 15.
As may be seen therefrom, there was a 184% increase in total reported
loans issued in the aggregate for 1999-2000 or 142% increase in loans
outstanding. By far the largest upward revision took place under indirect
credit, that is, from
`
21,857 crore to
`
82,186 crore or by 276% in loans issued
Table 5.4: Trends in Indirect Lendings for Agricultural sector by Agencies
(Rupees, Crore)
Year
Cooperatives
Commercial Banks Including RRBs
Direct
Indirect
Total
Direct
Indirect
Total
19987-88
4710
2453
7163
4009
277
4286
(34.3)
(6.5)
1990-91
4819
1727
6546
5010
209
5219
(26.4)
(4.0)
1995-96
12483
17371
29854
10655
1037
11692
(58.3)
(8.9)
1999-2000
25678
82186
107804
19335
3438
22773
(76.2)
(15.1)
2004-05
45009
114132
159141
60294
21728
82022
(71.7)
(26.5)
2007-08
57643
145778
203421
137310
40278
177588
(71.7)
(22.7)
2009-10
74,938
-
-
208823
82839
291662
(28.4)
Note:
Figures within brackets represent percentages to respective totals. (-) Not available
Source:
see Annexure M and N
