NABARD pegs Odisha’s priority sector credit potential at ₹3.15 lakh crore for FY’27, MSMEs and agriculture in sharp focus

THEBUSINESSBYTES BUREAU

BHUBANESWAR, FEBRUARY 3, 2026

Highlighting Odisha’s expanding economic canvas and growing demand for institutional finance, the National Bank for Agriculture and Rural Development (NABARD) on Tuesday projected the State’s priority sector credit potential at a robust ₹3.15 lakh crore for FY 2026–27. The projection was unveiled at the State Credit Seminar 2026–27 alongside the release of the State Focus Paper (SFP), outlining a sector-wise and region-wise roadmap for credit expansion.

As per the SFP, Micro, Small and Medium Enterprises (MSMEs account for the largest share of the projected credit potential at ₹1.52 lakh crore, followed by agriculture at ₹1.14 lakh crore. The remaining credit potential is spread across housing, education, renewable energy, social infrastructure, export credit and allied sectors, reflecting a diversified growth trajectory for the State.

The seminar was chaired by Odisha’s Chief Secretary Anu Garg, and witnessed the presence of Principal Secretary (Finance) Sanjeeb Kumar Mishra, RBI Regional Director Sarada Prasan Mohanty, State Bank of India Chief General Manager A.D. Ratna Teja, and UCO CGM & State Level Bankers’ Committee (SLBC) Convenor Goutam Patra, along with senior bankers, State Government officials and key stakeholders.

In her inaugural address, the Chief Secretary underscored the State Government’s commitment to the Vision 2036 blueprint and called upon banks and financial institutions to align credit delivery with Odisha’s long-term development ambitions. “Fulfilling Odisha’s Vision 2036 aspirations would take sincere efforts from one and all – the State government, public as well as private sectors. The banks must be well prepared to provide the enhanced credit,” she said.

Appreciating Odisha’s progress in supporting Self-Help Groups (SHGs) and farmers, she stressed the need to elevate them to the next level of economic prosperity. “Focus must be accorded on graduating SHGs into SMEs and farmers into agripreneurs,” she noted, while also flagging the challenge of the ‘missing middle’ in the MSME sector. She urged bankers to step up credit support to nurture a larger base of small and mid-sized industries across the State.

Calling for stronger coordination, the Chief Secretary emphasised closer collaboration between banks and line departments to accelerate credit flow to agri-infrastructure, warehousing, off-farm activities and women-led SHGs.

Echoing the need for inclusive growth, Principal Secretary (Finance) Sanjeeb Kumar Mishra highlighted the importance of balanced regional development. “Focus should also be given to boost credit in tribal and disadvantaged regions,” he said, while urging private sector banks to enhance priority sector lending across Odisha to improve the Credit-Deposit (CD) ratio.

Addressing the gathering, the RBI Regional Director called upon banks to take ownership of the projections outlined in the State Focus Paper, noting that these would form the basis of the State’s Annual Credit Plan.

SBI CGM lauded NABARD for preparing the SFP through a consultative, bottom-up approach that captures ground-level realities.

SLBC Convenor Goutam Patra observed that while banks in Odisha have achieved impressive growth in deposits and credit, challenges persist in the form of uneven CD ratios, relatively low term lending and gaps in Kisan Credit Card (KCC) coverage.

Offering a broader perspective, NABARD Chief General Manager V.K. Arya emphasised the need for concerted efforts to accelerate priority sector lending, particularly in agriculture and allied activities. “Odisha carries huge potential in credit growth in view of its vast geography, diverse agro-ecology and strong economic development in the past decade,” he said.