Announcing this during the launch of the "Zimidara Credit Card" by Punjab and Sind Bank here today, the Punjab Chief Minister Parkash Singh Badal stated that though farmers comprise about 70 per cent of the state population, credit extended to them by banks accounts for only 15 per cent of the total loan transactions.

He said that there is a need to increase flow of money in the agricultural sector to make the farming community economically sound.

Badal stated that there has been a gradual weakening of this sector over the years as a result of policies in vogue. He added that if this community is weak, it will affect the entire nation adversely, and hence the need to do some serious re-thinking in this direction.

While saying that new techniques be adopted for getting greater agricultural yield, Badal added that dairy farming, poultry farming and fisheries is becoming popular with the younger generation, which should be encouraged by reducing interest rates on loans extended for these projects.

Referring to his Pakistan visit this week, Badal said that during talks, Pakistani leaders had expressed surprise on the high agricultural yield in Punjab vis-a-vis that in Pakistan.

Earlier, PSB Chairman S.S. Kohli said that the bank has made a major headway in Punjab in agricultural advances, which stood at 35 per cent of total lendings in the state.

Giving details of the newly launched credit card, he said that it would provide agricultural loans at more than one place, with a provision for additional credit limit of 25 per cent of the scale of finance.

Farmers owning at least one acre of irrigated agricultural land are eligible to apply for the card, which would be valid for 10 years. For availing credit, the borrower will be issued cheques with predenominated face value, which can be encashed from any place as decided by the bank.

Kohli added that the bank has also liberalised its loan recovery policy by substantially reducing interests on loans extended to the agricultural sector.

Meanwhile, as a part of Khalsa tercentenary celebrations, about 300 historical paintings lying with the PNB will be put up on display at Anandpur Sahib. The bank, as per the Chief Minister's request, will also put up boards citing the "Gurbani" along major roads in the state.