Indian economy is basically agrarian. . Nearly 70% of the Indian population depends upon agriculture for a livelihood.   In the 50s and 60s India had to import foodgrains to meet its requirements. The successive five year plans embarked upon the green revolution and white revolution for which modernisation and mechanisation of agriculture and allied activities was a must and that needed financial support. As one of the measures to develop the economy and to provide support for nation building, Bank of India commenced rural lending wayback in 1968 even before the nationalisation of banks.   During the post nationalisation period, spanning more than 3 decades, the Bank has grown in size and stature with more than 2592 branches (1723 rural and semi-urban branches) spread across the length and breadth of the country.   The Bank has been supporting the task of nation building by implementing varied polices/guidelines of the Government with clear objectives. As against the benchmark of 40% prescribed by Reserve Bank of India under Priority Sector to Net Adjusted Credit, the Bank’s achievement is consistently over 45% for the last 5 years. 

The Bank has achieved business level of Rs. 16,800 crores as on February 2005, under priority sector. Presently, the Bank has more than 13.80 lakh borrowal accounts under Priority Sector credit fold and there are innumerable satisfied borrowers who have come up in life with our timely financial assistance.

 

Keeping in view the rich past experience and in tune with the Government of India/Reserve Bank of India guidelines, the Bank is adopting innovative and growth oriented administrative policy measures.

Focussed attention is given to build a loyal band of customers in Rural & Semi-urban areas where the Bank has more than 67% of its Branch Network.   This has enabled development of individuals, a village or even the given area by increased production and productivity, through smooth flow of credit.

The Bank has, of late, launched innovative schemes/card products with defined objectives and refined methodology.The Philosophy, concepts and various issues behind launch of our various new card products/schemes are as under :-

ii) To maintain continued relationship with our existing borrowers by providing credit packages which take care of both the present as well as future aspirations of the borrowers in pursuing their various productive ventures;

iii) Providing credit for the diversified needs of the borrower’s family for farm, off-farm as well as  consumption needs like housing, education, conveyance, marriages, health etc;

 

iv) Recognising our good borrowers and rewarding their loyalty by offering concessional rates of interest, better operational flexibility in the operation of their accounts,

 

v) Focussed attention for development of crops being grown in the given area like Cotton, Sugarcane, Potato, Chillies, Mangoes, Grapes, Oranges etc. Building up infrastructure for preservation and processing these crops.   Offering credit against stored farm produce so that farmers are not forced to sell in a buyers market.

 

vi) Building up infrastructures at farm level through irrigation, farm mechanisation and supportive allied activities like Dairy etc.

 

vii) To promote growth of industries including small artisans, services and business sectors.   For borrowers with established credentials, the package of assistance is redefined to take care of growth as well as seasonal credit needs without any hassles.

 

viii) In pursuit of achieving national objectives like better education and housing to all, the products are re-modelled to make them attractive with longer gestation period and lowered EMI at affordable interest cost.

 

ix) The process of submission of applications for loans, sanction, documentation and disbursements have been further simplified.

 

x) Rehabilitation package for Tsunami victims.

The various innovative schemes/card products are :

i.   Star Composite Cash Credit (CCC):

ii.  Kisan Credit Card (KCC)

iii. Kisan Gold Card (KGC)

iv.Star Kisan Samadhan Card (KSC)
(CCC, KCC & KGC are now subsumed into KSC)

v.   Star Bhoomiheen Kisan Card (BKC);

vi.  Star Artisan Credit Card (ACC);

vii. Laghu Udhyami Credit Card (LUCC);

vi.  Star SSI - Suprime

viii.Laghu Udhyami Trade Card (LUTC);

ix. Star Swarojgari Credit Card (SCC):

x.  Star Medi-Mobile;

xi. Star Kisan Vahan;

xii. Small Road Transport Operators (SRTO)

xiii.Star Home Loan Scheme

xiv.Star Education Loan Scheme: