NABARD projects Rs. 9.38 lakh cr Credit Potential for TN under priority sector for FY 2025-26

Chennai, Feb 5 (Representative) NABARD on Wednesday projected Rs. 9.38 lakh crore Credit Potential forTamil Nadu under the priority sector for FY 2025-26AT a State Credit Seminar for FY 2025-26 orgaised by NABARD, Tamil Nadu Finance MinisterThangam Thennarasu unveiled the ‘State Focus Paper for 2025-26’, which projects a creditpotential of Rs 9.38 lakh crore under the priority sector.This represents a 12.41% increase over the credit potential for current FY 2024-25.The agriculture sector accounted for 46% of the total projection, while the MSME sector isexpected to contribute approximately 37%, reflecting the growing demand for credit in thisarea.In his inaugural address, the Minister commended NABARD’s efforts in finalising State’s Creditpotential for the ensuing financial Year, under the Priority Sector that would form the basis forother banks to prepare their Annual Credit Plan.He also highlighted NABARD’s support for creation of rural infrastructure assisting to the tuneof Rs 31,887 crores for 47,295 projects, bringing more than 41.50 lakh ha of land under irrigation, laying of 52,820 km rural roads, 16,000 m bridges and 2,315 projects related to rural drinking water.

Mr Thennarasu said NABARD’s suggestions will be considered by TN Government and createnecessary infrastructure to facilitate credit flow to weaker sections, MSMEs, SHGs etc., andpossible convergence with NABARD’s schemes will be explored.He urged all banks to examine NABARD’s credit projections and ensure hassle-free credit accessin Tamil Nadu.R. Anand, Chief General Manager of NABARD Tamil Nadu Regional Office, in his keynote address,provided an overview of the State Focus Paper and NABARD’s operation in Tamil Nadu coveringbusiness and development initiatives. He spoke on NABARD’s business products for Rural Financial Institutions and named other fundsfor supporting the State government and Government-owned corporations. He also highlighted on impactful development and promotional initiatives in areas like agriculture ,agri tech, watershed, tribal welfare, micro finance, financial inclusion, institutional development, FPOs etc. N. Muruganandam, Chief Secretary, commended NABARD’s efforts in promoting priority sectorcredit through effective coordination with banks, while appealing to the bankers to channelisecredit to ensure equitable credit flow in agriculture, focusing on small and marginal farmers.

He also urged NABARD and other banks to lay more focus on tribal development.Apart from the state focus paper, two booklets, “Empowering Rural Tamil Nadu’, and “NABARDAssisted Infrastructure Projects-Impact in Tamil Nadu’ were also released during the seminar.The gathering collectively discussed the importance of infrastructure and innovation in the prioritysector to ensure the realization of the projected credit potential and thereby the overall developmentof the economy of the state.The event saw participation from senior bankers, state government officials, subject matter expertsand various stakeholders.