Agricultural Advances


Credit limit sanctioned to Central Coop. Banks for financing Seasonal Agricultural Operations

During the year 2014-15, NABARD sanctioned a consolidated credit limit of Rs.2600 crore to TNSC Bank on behalf of 22 DCCBs for financing Seasonal Agricultural Operations for cultivating various crops, including cereals.  During 2014-15, TNSC Bank sanctioned credit limits for Rs.1,215 crore from its own resources to all DCCBS.

Issue / Outstanding of Short Term Agricultural Loans by DCCBs

The DCCBs issued short term agricultural loans through PACS to the extent of Rs.5279.91 crores during the year 2014-15 as against the target of Rs.5,000 crore fixed by the Government of Tamil Nadu.  The outstanding under ST-SAO operations as on 31.3.2015 was Rs.3730.43 crore.

Credit limits to DCCBs for financing Short Term (Others)

In order to provide one more avenue to raise resources by the DCCBs for their lending activities during 2014-15, TNSC Bank sanctioned credit limits aggregating Rs.79.50 crore to 9 DCCBs for: (1) marketing of crops (Produce Pledge Loan) and (2) purchase, stocking and distribution of chemical fertilisers and other agricultural inputs for the year 2014-15.  The loan outstanding against the DCCBs under these limits as on 31.3.2015 was Rs.14.90 crore.

Government of India subvention

Government of India had implemented the policy of provision of 2% interest subvention for the year 2007-08 for the own involvement of coop. banks for issuing crop loans @ 7% upto Rs.3 lakh per borrower.  During 2014-15, Government of India has released the annual claim for 2% interest subvention to coop. banks for a sum of Rs.19.66 crore relating to the year 2012-13.

Government of Tamil Nadu Interest subsidy

The Government of Tamil Nadu is providing 2% interest subsidy to coop. banks for their own involvement in issuing crop loans @ 7% per annum.  Out of the eligible amount of Rs.54.55 crore for the year 2014-15, the Government of Tamil Nadu released a sum of Rs.33.01 crore.

Government of Tamil Nadu’s Interest Incentive Scheme to crop loan borrowers, who promptly repay their crop loans before due date

The Government of Tamil Nadu vide G.O. Ms. No.94, Cooperation, Food and Consumer Protection Department, dated 31.7.2009, enhanced the interest incentive benefit from 3% to 7% to the farmers, who have repaid the farm loan in time, resulting the interest for crop loan repaid in time will be at 0%.

Primary Cooperatives Development Fund

The Primary Cooperatives Development Fund (PCD Fund) was created at the Apex Bank level in the year 1990 in order to strengthen the Primary Cooperatives in the State.  TNSC Bank and the profit-making DCCBs are required to contribute 5% of their net profit to the fund from the year 1990-91 onwards. Loans were sanctioned to PACS out of PCD Fund for establishment of Agro-Service Centre, providing special jewel loan cash credit, etc.  The amount outstanding as on 31.3.2015 was Rs.24.99 crore.

PACS Deposit Guarantee Fund (PACS DGF)

With a view to creating a sense of security and confidence in the minds of depositors in PACS and for giving impetus to the deposit mobilisation by PACS, a Deposit Guarantee Scheme was introduced in Tamil Nadu in the year 1992-93.  The corpus of the Fund was contributed by the PACS, DCCBs and TNSC Bank in the ratio of 0.15% : 0.10%, 0.05% of the term deposit held by the PACS, as at the end of the previous financial year.  As per the scheme, in case of liquidation of a society, each depositor is eligible to receive a maximum of Rs.1 lakh from the Fund.  The amount outstanding as on 31.3.2015 was Rs.118.00 crore.

Price Stabilisation Fund

The Government of Tamil Nadu vide G.O. Ms. No.97, Cooperation, Food and Consumer Protection (H1) Department, dated 1.11.2011, constituted a Fund titled ‘Price Stabilisation Fund’ with the corpus of Rs.50 crore, to extend interest free financial support to the Cooperatives for effective market intervention by procuring selected commodities that are proven to abnormal price fluctuation from season to season and selling them through cooperative outlets at cost price to the public.  TNSC Bank has been managing this Fund from 24.1.2012.  As on 31.3.2015, a sum of Rs.47.37 crore is available in the Fund.

Agricultural Credit (Stabilisation) Fund

As per the Rules set out in the G.O. Ms. No.501 dated 8.11.1975 (Cooperation Department), Government of Tamil Nadu authorised TNSC Bank to administer the Agricultural Credit (Stabilisation) Fund.

Crop Insurance

(Rs. in lakhs)
Season No. of farmers Extent covered (hectares) Sum insured Premium collected Indemnity paid
Kharif – 2014 198295 267031 80036 1150.58 1265.05
Rabi 2014-15 409230 536576 143182 1700.76 6145.38