NABARD sees credit potential of ₹4.46 lakh crore for Karnataka in FY26

The National Bank for Agriculture and Rural Development (NABARD) forecast a credit potential of ₹4.46 lakh crore for Karnataka for the financial year 2025–26, aligning closely with State-Level Bankers’ Committee’s annual credit plan of ₹4.38 lakh crore, said Surendra Babu, chief general manager, Karnataka Regional Office, here on Tuesday.

Speaking at NABARD’s 44th Foundation Day event held here, he said NABARD’s total business operations, since its inception, in the State reached an all-time high of ₹27,846 crore, which included ₹21,442 crore in refinance assistance to banks and cooperative institutions, ₹4,974 crore in infrastructure finance to the State government, and ₹1,431 crore in direct refinance to district central cooperative banks.

According to him, this year, ₹4,500 crore was sanctioned to the Karnataka Industrial Areas Development Board for developing industrial parks in the State, which are expected to generate employment and entrepreneurship opportunities for nearly 60,000 rural youth and women.

Elaborating on NABARD’s digital outreach and financial inclusion efforts, he said, over 4,200 micro-ATMs were deployed to enhance last-mile banking access. Some ₹3.08 crore was sanctioned to the Karnataka Gramin Bank to develop connectivity infrastructure in underserved areas.

NABARD released a booklet titled ‘Success Stories of FPOs in Karnataka’, which documented the inspiring journeys of farmer-producer organisations across the State. The booklet showcases how small and marginal farmers have successfully come together to access markets, add value to their produce, embrace digital platforms, and establish inclusive and resilient business models.

NABARD has played a key role in supporting sustainable agriculture, developing secondary agriculture, creating value addition and in the development of rural infrastructure in Karnataka, acknowledged Chief Secretary Shalini Rajneesh.

Speaking on the sidelines of the event, she urged farmers in the State to make full use of NABARD’s schemes and become entrepreneurs.

Elaborating on value addition, the Chief Secretary said, instead of selling mangoes as raw produce, farmers should process them into various products and sell them. Recently, the price of Totapuri mango variety crashed, and if mango farmers set up small processing units in their villages, they would be able to earn income round the year, she said.