Bank of baroda

Rural Banking
Priority Sector Advances
Approximately 23.0% of India’s GDP is derived from agriculture. The industry supports approximately two-thirds of India’s
population and accounts for 14.7% of export earnings. As of the last reporting Friday of March 2004, the last reporting

---

56
BANK OF BARODA
Friday of March 2005 and the last reporting Friday of September 2005, agricultural loans constituted 16.24%, 15.45%
and 14.96% of our net bank credit, respectively.
We offer a wide variety of products and schemes to the agricultural community to assist rural development. The table
below sets out the geographic distribution of agricultural accounts across India, as of the last reporting Friday of March
2004, the last reporting Friday of March 2005 and the last reporting Friday of September 2005.
March 2004
March 2005
September 2005
Geographic
Number of
Amount
% of total
Number of
Amount
% of total
Number of
Amount
% of total
Distribution
Accounts Outstanding
outstanding
Accounts Outstanding
outstanding
Accounts Outstanding
outstanding
(Rs. in
agricultural
(Rs. in
agricultural
(Rs. in
agricultural
Million)
loans
Million)
loans
Million)
loans
Northern India
364,366
18,058.40
45.73
40,4570
22,559.70
49.31
416,852
23,317.70
41.62
North-Eastern India
2,312
97.70
0.25
2929
134.50
0.29
3,626
169.20
0.30
Eastern India
44,148
2,395.20
6.07
5,8650
2,563.10
5.60
62,983
3,012.20
5.38
Central India
22,838
896.80
2.27
2,1193
1,131.20
2.47
21,653
1,284.50
2.29
Western India
214,512
14,073.40
35.64
23,3502
14,179.60
31.00
246,600
20,434.70
36.47
Southern India
76,724
3964.10
10.04
8,4752
5,179.20
11.32
94,438
7,812.00
13.94
Total agriculture
portfolio
724,900
39,485.60
100.00
80,5596
45,747.30
100.00
846,152
56,030.30
100.00
Details of our facilities and products developed for our agricultural customers are set out below.
Baroda Kisan Credit Card
The Baroda Kisan Credit Card is designed exclusively for the benefit of farmers and aims to provide them the opportunity
to manage and utilize funds according to their needs. The facility provides support to farmers for their production needs
including for the purchase of quality inputs, investment requirements for infrastructure, farm maintenance expenses,
unforeseen family expenses and non-farm activities. We had approximately 515,637 Baroda Kisan Credit Cards outstanding
as at September 30, 2005.
Agricultural Lending, Financing and Investment
We assist by providing loans for the purchase of agricultural implements for farmers and also landless labourers, heavy
agricultural machinery either by farmers having larger holdings with irrigation facilities or groups of farmers with shared
irrigation facilities and second hand tractors and equipment. A crop cultivation lending scheme is also in place to assist
farmers to purchase agricultural inputs and cover the other expenses related to the raising of crops. Security for these
loans is often provided against the implement or by way of a pledge/hypothecation of agricultural produce. Loans are
also available for the cost of storing produce, improving irrigation, developing new orchards or maintaining orchards, land
development and construction and maintenance of farm buildings.
Individuals and entities which provide services to farmers and others in the agriculture sector can also benefit from our
products. This includes all individuals, entrepreneurs, organizations, institutions, corporations (such as agro industries
corporations, market yard or authorized licensee in market yard, warehouse owners and agro service centers) who are
capable of carrying out such activities and have viable schemes for providing custom services to farmers.
Allied Investment
We support the development of allied activities to agriculture including dairy, poultry, fisheries, sericulture, mushrooms
and apiculture by extending short term and long term finance. Our dealings extend to assist the production, processing
and marketing activities of farmers, landless labourers, firms and organizations (co-operative societies).
We also provide a scheme for the establishment of agri-clinics and agri-business centers by agriculture graduates and
assist by providing loans to unemployed technical personnel to provide custom services to farmers.

---

57
Micro Financing (SHG)
Loans are also provided to self-help groups and non governmental organisations for on-lending to SHG members of
SHGs, individuals or small groups. Lending to SHGs is included as a part of our lending to priority sectors. Micro credit
is provided by us either directly or through any intermediary.