Nabard Boosts Priority Sector Lending in West Bengal by Over 20%

Nabard has raised the priority sector lending target for West Bengal by 20.63% to Rs 3.80 lakh crore for FY 2025-26. The agriculture sector accounts for 33.42% of this amount. The state holds significant export potential, with an emphasis on farmer-producer organizations and MSMEs.

The National Bank for Agriculture and Rural Development (Nabard) announced on Friday an increase in the priority sector lending target for West Bengal, raising it by 20.63% to Rs 3.80 lakh crore for the 2025-26 financial year (FY'26). This substantial boost reflects Nabard's approach in preparing potential linked credit plans for each district, ensuring the facilitation of financial resources to the priority sector.

These credit plans, as outlined by Nabard, evaluate the potential of priority sector lending conducted by banks, while also highlighting existing credit deployment trends, necessary infrastructure, and available market opportunities. The projected credit flow towards West Bengal's priority sector for 2025-26 is substantial, with 33.42% dedicated to agriculture and allied ancillary activities, comprising Rs 1.27 lakh crore.

Nabard emphasizes the need to focus on farmer-producer organizations (FPOs), particularly emphasizing processing and marketing. The agency also pointed out West Bengal's significant export potential within agriculture. Onkar Singh Meena, the state's Principal Secretary for Agriculture, noted an existing credit disbursement of Rs 75,000 crore, with expectations to reach Rs 1 lakh crore this financial year. Additionally, the MSME sector shows a promising credit potential of Rs 2 lakh crore, constituting 52.63% of the total lending capacity in the state.

(With inputs from agencies.)