From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Sep 12: The Karnataka State Cooperative Apex Bank Limited has asked all farmers, who have not repaid crop loans borrowed during the last two years, to repay loans before end of this month to avail subsidised rate of interest of four and three per cent respectively depending on the year the loans were taken.
The State Government has directed cooperatives to grant crop loans at four per cent rate of interest in 2009-10 and three per cent in 2010-11. The rate of interest on crop loans was further reduced to one per cent in 2011-12.
Karnataka State Cooperative Apex Bank President R M Manjunath Gowda said about 10,000 farmers have not repaid old crop loans amounting Rs. 500 crore borrowed during 2009-11.
Cooperative banks would charge interest rates of four and three per cent respectively if famers repay loans before end of this month.
Banks would charge normal rate of interest of 11.5 per cent on old crop loans from next month onwards, he said.
The bank though district cooperative credit banks (DCC banks) and primary agricultural cooperative societies has set a target of disbursing Rs. 5,700 crore crop loans to 18 lakh farmers in 2011-12 at the rate of one per cent.
The target for DCC banks for advancing short term loans has been fixed at Rs. 5,400 crore and medium term loans at Rs. 300 crore in this year. Already a sum of Rs. 2738 crore has been disbursed to eight lakh farmers till August end of 2011-12, he said.
The Apex Bank, which has earned a net profit of Rs. 45.59 crore in 2010-11, has set a target of earning profit of Rs. 100 crore in 2011-12. The bank implemented E-stamping facility through its 40 branches in Bangalore.
The bank has proposed to form 20,000 self help groups through cooperative institutions in the State and extend credit of Rs. 600 crore to totally 40,200 SHGs in 2011-12 under the SHG formation and bank linkage programme.
He said the bank planned to open branches in all district headquarters in the State. In the first phase, it has decided to open one branch each in divisional headquarters.
It was proposed to construct a high-tech building complex comprising a training centre, guest house, farmers’ community hall, and corporate hall at an estimated cost of Rs. 20 crore in the three acres of land owned by the bank near Yeshwanthpur, the Apex Bank President added.