BoB Agri port­fo­lio

Banking Frontiers - - Contents - [email protected]­ingfron­tiers.com

Set to launch Bar­oda Kisan Agri Dig­i­tal plat­form to cater to all the ma­jor needs of large farm­ers:

The Indian econ­omy recorded a slower pace of growth in the last fi­nan­cial year, pri­mar­ily on ac­count of a no­tice­able slow­down in the agricultur­e sec­tor. The area sown un­der both kharif and rabi de­clined due to spa­tially dis­trib­uted and be­low nor­mal rain­fall in 2018-19. How­ever, these de­vel­op­ments did not pre­vent Bank of Bar­oda from of­fer­ing its as­sis­tance to the small and large farm­ers. It has a targe­to­ri­ented ap­proach in this in the last FY.

VAR­I­OUS AGRI PROD­UCTS

The bank has a net­work of 1845 branches in ru­ral and 1546 branches in semi-ur­ban ar­eas, which are ori­ented to­wards pri­or­ity sec­tor and agricultur­e lend­ing. Dur­ing FY 2019, the bank opened 22 new ru­ral and semi-ur­ban branches. It has moved to a more diver­si­fied ru­ral lend­ing strat­egy by fo­cus­ing on new prod­ucts across ru­ral cus­tomer seg­ments like farm mech­a­niza­tion, hor­ti­cul­ture loans, warehouse re­ceipt fi­nanc­ing, food and adopt­ing a com­mu­ni­ty­based lend­ing model for the small farm­ers and com­mu­ni­ties.

B.R. Patel, gen­eral man­ager and chief, co-or­di­na­tion for agricultur­e and fi­nan­cial in­clu­sion, at the bank, says farm­ers with land­hold­ing of above 2 hectares are termed as large farm­ers by the bank and ev­ery scheme of the bank has dif­fer­ent fea­tures based on the prod­uct. “For ex­am­ple,” says he, “Kisan Credit Cards are pro­vided to farm­ers as per the scale of fi­nance for cul­ti­va­tion of short-term and long-term crops. For pro­cess­ing of agricultur­e pro­duce we have schemes un­der food and agro pro­cess­ing.”

Dur­ing FY 2019, the bank is­sued 229,000 KCCs. Bar­oda Kisan RuPay Card, an ATM-en­abled smart­card, was is­sued to 1.346 mil­lion farm­ers. To fa­cil­i­tate credit link­ages of Farmer Pro­ducer Or­ga­ni­za­tions (FPOs), the bank tied up with Small Farm­ers’ Agribusi­ness Con­sor­tium (SFAC) for pro­vid­ing credit guar­an­tee for col­lat­eral free loans and also as a pre­ferred bank for Ma­ha­rash­tra.

AGRI TAR­GETS ACHIEVED

The bank’s agricultur­e ad­vances grew by 14.2% yoy to `566.23 bil­lion as on 31 March 2019. The bank achieved all manda­tory tar­gets un­der agricultur­e, pri­or­ity sec­tor, small and mar­ginal farm­ers, mi­cro en­ter­prises, and loans to non-cor­po­rate farm­ers dur­ing FY 2019 and earned a net com­mis­sion of `330 mil­lion by sell­ing Pri­or­ity Sec­tor Lend­ing Cer­tifi­cates (PSLC) worth `77 bil­lion.

Says Patel: “We have served 30,683 ac­counts of large farm­ers in 2018-19. The to­tal amount of credit ex­tended to them is `11.28 bil­lion. There were 27,163 ac­counts of large farm­ers, with lend­ing amount be­ing `8.87 bil­lion a year ago.”

The bank also cov­ered 8018 choupals with par­tic­i­pa­tion of 238,974 farm­ers through 1621 kisan melas, 339 health camps (soil / an­i­mal / farmer), 4884 farmer meet­ings and 310 fi­nan­cial lit­er­acy camps in FY 2019.

KISAN DIG­I­TAL PLAT­FORM

The bank has de­vel­oped var­i­ous IT-based prod­ucts for all its cus­tomers in­clud­ing Bar­oda Con­nect (in­ter­net bank­ing), M Con­nect (mo­bile bank­ing). “We have em­barked on an am­bi­tious project ‘Bar­oda Kisan Agri Dig­i­tal’ plat­form, which will cater to all the ma­jor needs of the farm­ers in­clud­ing large farm­ers. Through this plat­form, the farm­ers will be pro­vided with vital in­for­ma­tion i.e. weather in­for­ma­tion, crop health, soil mois­ture, pest in­fec­tion in­for­ma­tion, mandi prices, crop spe­cific ad­vi­sor y, in­put buy­ing ( l i ke s e e ds, fer­til­iz­ers, pes­ti­cides), equip­ment rent­ing, etc,” says Patel.

DEGROWTH IN NET NPA

The gross NPAs of large farm­ers in­creased to `933.5 mil­lion in 2018-19, record­ing a yoy growth of 7.26%. Busi­ness cor­re­spon­dents are in­cen­tivized for col­lec­tions in crop loans. Patel men­tions the net NPAs of large farm­ers came down to `431.4 mil­lion in 2018-19, record­ing a yoy degrowth of 11.89%.

B.R. Patel ex­plains how BoB pro­vides crop spe­cific ad­vi­sory to farm­ers us­ing dig­i­tal plat­form

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