As per a recent press report the Kerala based Federal Bank has said that lending to the agricultural sector would gain more profit while the other banks have an impression that lending to the agricultural sector is risky.
According to Mr. T.S. Jagadeesan, Chief General Manager of Federal bank, lending to agriculture is profitable. The bank has lent around 13.2 per cent of Rs. 32, 000 crore advances to agriculture. Especially it is true with agriculture in Tamil Nadu where the Kerala – based banks are increasing their activities as the agriculturists in Tamil Nadu are making good money. He specified that agriculture not only means paddy cultivation but it also includes banana cultivation and export oriented businesses that fetch more profit.
He also said that the bank has made plans accordingly to concentrate and increase its services more to the agricultural belt of western and southern Tamil Nadu in a large aspect.
Mr. Jagadeesan also said that the risk due to monsoon variation is not consideration because every business is subject to many risks. With this strategy in mind nine branches of the bank were opened in the State, which were among the 66 branches the bank opened during the celebration of its 66th Founder’s Day.