Banking in Goa
Banks in Goa have been performing well, reaching out to the masses and offering timely assistance:
The banking outreach in Goa can be described as excellent with total 821 branches of 37 commercial banks (650 branches), 59 branches of the state cooperative bank and 105 branches of 15 urban cooperative banks at the end of FY 2018-19. There were 298 ATMs as of 2017-18. These details are brought out in a booklet titled ‘Role of NABARD in Goa 2018-19’, prepared by Kamakshi Pai, GM/ officer in-charge, NABARD, Panaji.
The South Goa district has over 47 banks operating through a network of 422 rural and semi urban branches. There are 33 commercial banks (with 340 branches), the state cooperative bank (31 branches) and 13 UCBs (51 branches). There are 50 PACS and 65 cooperative credit societies in the district. Goa does not have any DCCBs or RRBs. There are 53 banks operating through a network of 399 rural and semi urban branches in North Goa district.
Ulhas Phaldesai, chairman, Goa State Cooperative Bank, says the bank has 23 ATMs in the state and no ATMs were added in 2018-19. All the ATMs are in urban areas. The total customer base of the bank is 369,000.
Goa is 100% financially included. The lead bank is State Bank of India with 54 branches. India Post Payments Bank commenced its operations with a branch at Margao and 4 access points (post offices) as its outlet for delivery of financial services.
The Potential Linked Credit Plan (PLP) prepared by NABARD for 2019-20 for South Goa projects a credit potential of `36.80 billion under priority sector as compared to `36.35 billion during 201819, an increase of 1%. The ground level credit in South Goa under priority sector in 2015-16, 2016-17, 2017-18 were `19.73 billion, `24.73 billion and `24.08 billion respectively. During 2017-18, the priority sector achievement was 67%.
Kamakshi Pai says projections for crop loans (at `2.22 billion) account for about 43% of the total farm credit of `5.22 billion. The balance 57% is for term lending activities in the farm sector, which will lead to long term capital formation leading to better farm incomes on a sustainable manner and help achieve the aim to double the farmers’ income by 2022, she adds.
The Area Development Schemes formulated by NABARD on commercial cashew cultivation and dairying are being implemented in 3 blocks of South Goa. Land title issue is a serious impediment for issue of crop loans by banks.
In tune with its service sector economy, the performance of MSMEs has been adequate for the last few years. Says Kamakshi Pai: “The potential under this sector has been assessed at `17.92 billion (nearly 50% of the total priority sector). The other priority sector (export credit, education, housing, renewable energy and social infrastructure) projections have been pegged at `13.66 billion.”
The thrust areas for 2019-20 would ideally be a more focused approach to group lending while also ensuring setting up of agri-enterprises leveraging on primary processing and storage facilities.
The South Goa district is well developed as far as social infrastructure is concerned. NABARD support by way of Rural Infrastructure Development Fund (RIDF) / Warehousing Infrastructure Fund (WIF) / NABARD Infrastructure Development Assistance (NIDA) can be tapped to build additional infrastructure.
The ground level credit in North Goa under priority sector in 2015-16, 2016-17, 2017-18 was `23.04 billion, `22.82 billion and `29.16 billion respectively. During 2017-18 the priority sector achievement was 81%. The major economic activities in North Goa district are tourism, mining, agriculture and fisheries.
The Goa government initiative for community farming is being supplemented by NABARD. Says Kamakshi Pai: “More community farming projects need to be encouraged. The state government should introduce Agricultural Land Leasing Act to enable formal leasing of land. This would help cultivators to access credit and farm related benefits and prevent misuse of benefits by owners not cultivating the land.”
She requests t he government to reform inheritance laws to resolve issues relating to title deeds. She also suggests that the state revenue department may create infrastructure for online creation of charge on land documents of borrowers. The SLBC should also monitor issuance of RuPay cards to all KCC account holders /
farmers in coordination with agriculture department as envisaged by government of India, she adds.
There is a good potential for micro irrigation projects under Jal Shakti in the state and Kamakkshi Pai says the state water resources department / agriculture department should consider popularizing micro irrigation systems among farmers, especially in command areas of irrigation projects.
LOANS FOR SHG
Kamakshi Pai has requested the Rural Development Agency (RDA) of the state government and the Goa State Rural Livelihood Mission (GSRLM) to introduce interest subvention scheme as envisaged under NRLM for helping SHGs access concessional loans in South Goa district, on the lines of North Goa which is a Women SHG district, and for issuance of chip-based cards to SHGs where details of SHG members are populated. Owing to poverty levels, the progress under the SHGbank linkage program has been poor with only about 23% of the SHGs being credit linked in South Goa. NABARD project for digitization of SHGs – EShakti – is under progress in the district.
LONG TERM PROJECTS
NABARD has cumulatively sanctioned `18.76 billion and disbursed `12.04 billion in Goa for 201 projects as of 2018-19. The construction of Atal Setu, a cable stayed bridge, across Mandovi river, has been sanctioned under NABARD Infrastructure Development Assistance with a loan assistance of `4.62 billion to Goa State Infrastructure Development Corporation.
Of this, `1.75 billion was disbursed during 2018-19, completing 100% finance under the project.” The long-term refinance disbursed in Goa to the banks during 201819 is `658.3 million. Kamakshi Pai says the banks which have availed this refinance include RBL Bank, IndusInd Bank, Yes Bank and Ujjivan SFB.
Various steps have been taken by the state government for creation of rural infrastructure with support of NABARD. It has requested the state government to prioritize projects for future assistance during the year and the bankers to leverage the infrastructure already created to provide finance for income generation activities. The Goa regional office had recently organized a state level workshop on Dairy Entrepreneurship Development Scheme and other government-sponsored schemes.
According to chief minister Pramod Sawant, the long pending demand of RBl for a plot of land at Patto, Panaji has finally been approved. There are 4.7 million bank accounts in the state which is almost 3 accounts per person in different banks. The state government is giving interest free loans to students and the repayment percentage is 99. The government is spending `500 million monthly towards the DDSSY and Grih Addhar scheme, but many a times the government is not able to release the pension on the stipulated day due to cash flow / technical issues. The chief minister has requested the banks to explore the possibility of a tie-up under which the banks will release pension on due dates and then obtain reimbursement from the government.