Shah s Writ Here Too


yet alt is not well with AFC. Why is this so?
When banks were brought wider social control, the major banks (now nationalised) decided to establish the AFC with an authorised share capital of Rs 100 crores (which, incidentally is four times the authorised capital of the Agricultural Refinance Corporation, set up by the Reserve Bank in 1963) to act as the consortium leader for hanks in the field of agricultural lending. The banks wanted some agency to handle agricultural finance on their behalf and in association with them. They put up a total share capital of Rs 5 crores and AFC made an ambitious beginning. its outstandings (inclusive of interest) as the end of 1973 were Rs 3.33 crores to State Electricity Boards, Rs 13.39 lakhs (after excluding Rs 6.64 lakhs written off as bad debt) to others as secured advances and Rs 3.42 lakhs as unsecured advances. The figure of advances has not changed much between 1072 and 1973, indicating that shortage of funds has forced the AFC to practical!y stop lending.