152
data between direct and indirect lendings. As stated above, the data for
commercial banks in the above Table 5.6 include indirect lendings but the
same does not appear to be true of cooperative banks. This observation is
based on the fact that for many years the
SACP
series for cooperatives are
lower than the
Handbook
series. RIDF deposits are covered in commercial
banks’ lendings and cannot be so in cooperatives data. Also, if the RBI’s
Handbook
series are to be believed, indirect lendings by cooperative banks
have constituted much larger sums than those by commercial banks (see, for
details, an earlier paragraph and Annexure N). As a result, the decline in the
proportion of agricultural credit attributable to cooperative banks cannot be as
sharp as the NABARD data indicate; NABARD data obviously exclude indirect
credit data in respect of cooperatives. As for commercial banks, our conviction
of the proposition of mix-up is based on the following factual position.
The Advisory Committee on Flow of Credit To Agriculture and Related
Activities From the Banking System
(Chairman: V.S. Vyas; June 2004) had
obtained the relevant data from the Rural Planning and Credit Department of
the RBI as reproduced in Table 5.8. As shown in the caption of the table (page
13 of V.S. Vyas 2004), these data are in respect of public sector banks. To prove
that these represent the same RBI data on commercial banks’ disbursements
Table 5.8: Disbursement of Credit to Agriculture under SACP
(by Public Sector Banks)
Year
Production
Credit
Investment
Credit
Total Direct
Lending
Indirect
Lending
Total
Disbursement
Total
Disbursements
by Public
Sector Banks*
(1)
(2)
(3)
(4)
(5)
(6)
(7)
1995-96
4,951
4,040
8,991
1,182
10,172
-
1996-97
6164
(24.5)
4,896
(21.2)
11,061
(23.0)
1,721
(45.7)
12,782
(25.6)
-
1997-98
7,299
(18.4)
5,373
(9.7)
12,672
(14.6)
2,136
(24.1)
14,808
(15.8)
14,808
1998-99
8,204
(12.4)
6,063
(12.9)
14,267
(12.6)
3,521
(64.8)
17,787
(20.1)
17,788
1999-2000 9,903
(20.7)
6,120
(1.0)
16,023
(12.1)
5,890
(67.3)
21,913
(23.2)
21,913
2000-01
11,615
(17.3)
6,818
(1.1)
18,433
(15.0)
6,221
(5.6)
24,654
(12.5)
24,654
2001-02
15,385
(32.5)
7,288
(6.9)
22,673
(23.0)
6,659
(7.0)
29,332
(18.0)
29,332
2002-03
18,319
(19.1)
7,831
(7.5)
26,150
(15.3)
7,771
(16.7)
33,921
(15.6)
33,921
* Including RIDF. Figures in brackets indicate year-on-year growth rates.
Source:
(i) RBCD, RBI as Reproduced from V.S. Vyas Advisory Committee Report, June 2004, p.13
(ii) Special tabulations supplied to EPWRF for the project by the RBI [column (7)]
