Chennai: NABARD on Wednesday projected Rs. 9.38 lakh crore Credit Potential for Tamil Nadu under the priority sector for FY 2025-26 AT a State Credit Seminar for FY 2025-26 orgaised by NABARD, Tamil Nadu Finance Minister Thangam Thennarasu unveiled the ‘State Focus Paper for 2025-26’, which projects a credit potential of Rs 9.38 lakh crore under the priority sector.
This represents a 12.41% increase over the credit potential for current FY 2024-25.
The agriculture sector accounted for 46% of the total projection, while the MSME sector is
expected to contribute approximately 37%, reflecting the growing demand for credit in this
area.
In his inaugural address, the Minister commended NABARD’s efforts in finalising State’s Credit potential for the ensuing financial Year, under the Priority Sector that would form the basis for other banks to prepare their Annual Credit Plan.
He also highlighted NABARD’s support for creation of rural infrastructure assisting to the tune of Rs 31,887 crores for 47,295 projects, bringing more than 41.50 lakh ha of land under irrigation, laying of 52,820 km rural roads, 16,000 m bridges and 2,315 projects related to rural drinking water.
Mr Thennarasu said NABARD’s suggestions will be considered by TN Government and create necessary infrastructure to facilitate credit flow to weaker sections, MSMEs, SHGs etc., and possible convergence with NABARD’s schemes will be explored.
He urged all banks to examine NABARD’s credit projections and ensure hassle-free credit access in Tamil Nadu.
R. Anand, Chief General Manager of NABARD Tamil Nadu Regional Office, in his keynote address, provided an overview of the State Focus Paper and NABARD’s operation in Tamil Nadu covering business and development initiatives.
He spoke on NABARD’s business products for Rural Financial Institutions and named other funds for supporting the State government and Government-owned corporations.
He also highlighted on impactful development and promotional initiatives in areas like agriculture, agri tech, watershed, tribal welfare, micro finance, financial inclusion, institutional development, FPOs etc.
N. Muruganandam, Chief Secretary, commended NABARD’s efforts in promoting priority sector credit through effective coordination with banks, while appealing to the bankers to channelise credit to ensure equitable credit flow in agriculture, focusing on small and marginal farmers.
He also urged NABARD and other banks to lay more focus on tribal development.
Apart from the state focus paper, two booklets, “Empowering Rural Tamil Nadu’, and “NABARD Assisted Infrastructure Projects-Impact in Tamil Nadu’ were also released during the seminar.
The gathering collectively discussed the importance of infrastructure and innovation in the priority sector to ensure the realization of the projected credit potential and thereby the overall development of the economy of the state.
The event saw participation from senior bankers, state government officials, subject matter experts and various stakeholders.
