Role of Banks on Agricultural Credit in India (With special reference to NABARD)

The aim of this study is to determine the role of banks on agricultural development. Agricultural development is determined in respect of crops, purchase and installation of irrigation equipment, livestock, and marketing of agricultural goods, fisheries, poverty alleviation and income generating activities. Secondary data was collected from annual reports of NABARD Bank during period from 2013 to 2015. The disbursement of agricultural credit on crop production is increased up to Tk. 71.31 billion in 2018 from Tk.33.19 billion in 2013. Subsequently, the disbursement of agricultural credit on purchase and installation of irrigation equipment, crop production, marketing of agricultural goods, fisheries are changed significantly with time. The credit on poverty alleviation increased up to Tk. 18.64 billion in 2018 from Tk.13.61 billion in 2013. The result indicates that bank plays on a significant role on agricultural development in India. Timely flow of agricultural credit can meet farmers demand to ensure agricultural productivity. The study will help governmental policy makers and NABARDs to address and analyze the issues of agricultural sector to provide loan to the farmers for promoting actual development in this sector.