Deputy CM urges banks not to insist on collaterals, FDs for farm loans

Deputy Chief Minister Mallu Bhatti Vikramarka on Monday urged banks to extend credit timely to farmers and refrain from insisting on collaterals or fixed deposits for disbursal of farm loans.

“Bankers must deal with farm loan disbursals with compassion. It is not right to force farmers to mortgage properties or make deposits as a condition,” he told the 46th quarterly review meeting of the State Level Bankers’ Committee (SLBC), Telangana, here.

Appreciating the banking sector’s role in financial empowerment and economic development, particularly in achieving 33.64% of the annual credit plan target in the first quarter itself, he said “let us advance towards a comprehensive, technology-driven, sustainable banking ecosystem in Telangana.”

The State government considers agriculture as the backbone of the economy and in line with this approach deposited ₹30,000 crore in banks towards crop loan waiver and Rythu Bharosa. “This is a record,” he said.

Calling upon banks to extend credit ‘generously’ to Indiramma housing beneficiaries, agriculture and allied sectors as well as under self-employment schemes, he said Telangana has emerged as the number one State in India in the backdrop of sustained growth in agriculture, industry and services sectors.

Highest per capita

One of the fastest-growing States, Telangana has the highest per capita income, in the country, at ₹3.87 lakh, overtaking Karnataka and Haryana. For the first time in five years, it regained the top spot. It has emerged as one of the dynamic economies in India and a model for other States.

Besides supporting farmers, the banks should consider playing an active role in infrastructure development, especially 13,000 km internal roads planned in the State and widen engagement with MSMEs and work for upliftment of weaker sections, his office said in a release on his speech.

Presenting a report on the performance of the banks in the State during the quarter ended June, SBI Hyderabad Circle CGM Sahadevan Radhakrishnan said total deposits of the banks increased by ₹23,883 crore to ₹8,64,312 crore. Total advances rose ₹12,021 crore to ₹10,93,382 crore.

CD ratio continues was 126.50% at the end of the quarter. Banks disbursed short term production loans totalling ₹17,577 crore thus achieving 32.73% of the Kharif target. They disbursed ₹23,473 crore as investment credit to agri and allied sectors, achieving 30.96% of the target.