SBI’s Rs. 2,58,612 Cr Loan Disbursement Milestone Makes it Leader in Rural Banking for Agriculture and Agri-Business
MUMBAI (India CSR Exclusive): The Government of India is aware of the challenges facing the agricultural sector, such as climate change, pests and diseases, and market volatility. The government is working to address these challenges through a combination of policy measures and investments in research and development. The government is confident that these measures will help to ensure the continued growth and resilience of the agricultural sector.
The agricultural sector is concentrated in rural areas. India is committed to improving the lives of people living in rural areas by promoting agricultural development. This will help to reduce poverty and improve living standards in rural areas.
State Bank of India (SBI) has emerged as the frontrunner in the rural banking sector, surpassing its competitors in the Nationwide One Branch One Loan (NOBOL) campaign and the Bankers Enabling Sustainable Transformation (BEST) campaign for the Agri Infra Fund, administered by the Ministry of Agriculture and Farmers Welfare. With these achievements, SBI solidifies its position as a leading financial institution supporting agricultural development and rural communities.
In line with its commitment to catering to the credit requirements of agri-based enterprises engaged in various agriculture, allied, agri infrastructure, and ancillary activities, SBI has introduced a new product called Agri Enterprise Loan (AEL). This offering is expected to stimulate growth in the investment credit portfolio, acting as a catalyst for agri-based businesses across the country.
Additionally, SBI has launched the Kisan Samriddhi Rin (KSR) product, which addresses the credit needs of large farmers, corporates, Farmer Producer Organizations (FPOs), and cooperatives. This innovative product considers the realistic cost of end-to-end farming, including high-value export crops and the utilization of advanced farming techniques.
Notably, SBI has achieved a significant milestone this financial year by disbursing loans amounting to an impressive Rs. 2,58,612 Crore to farming and agricultural activities. This achievement marks the highest lending figure offered by any bank and extends assistance to over 1.45 Crore farmers.
Moreover, SBI’s agriculture gold loan portfolio has experienced substantial growth, reaching Rs. 83,000 Crore as of March 31, 2023, compared to Rs. 73,600 Crore on March 31, 2022.
In a further demonstration of its commitment to supporting Aatmanirbhar Bharat initiatives, SBI has disbursed loans totaling Rs. 1,543 Crore to 6,954 borrowers during the current financial year.
These loans were granted to bolster schemes such as the Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF), and PM Formalisation of Micro Food Processing Enterprises (PM FME).
SBI’s remarkable achievements in the rural banking sector not only signify its dedication to fostering agricultural growth but also contribute to the realization of the government’s vision of an Aatmanirbhar Bharat (self-reliant India) through the promotion of sustainable farming practices and the development of agri-based enterprises.
