Telangana has pegged its annul credit plan for 2017-18 at ₹1.14 lakh crore for the year, out of which 34.76 per cent will be crop loans.
The annual credit plan target for 2016-17 was ₹90, 777 crore while the achievements up to March 2017 was ₹1,41,390 crore, according to the State Level Bankers’ Committee (SLBC).
Speaking after formally releasing the annual credit plan at the SLBC meeting here on Friday, Telangana Finance Minister Etala Rajender asked the banks to ensure adequate cash flow for farmers in the rural areas during the Khariff season.
The repercussions of the demonetisation are still felt in rural areas as most of the ATMs are not dispensing cash, he said, adding: “Despite the digitalisation effort, an average farmer will use only cash for various transactions. The RBI and banks should ensure adequate cash supply.’’
Responding to a presentation made by SLBC on increasing non-performing assets in agricultural portfolio at 6.89 per cent, he said high NPAs should not deter banks from giving loans to the needy farmers. “You should refuse loans only to wilful defaulters but not to the common man,” he said.
Stating that the Telangana government had waived ₹17,000 crore crop loans in the last three years, Rajender said many states such as Uttar Pradesh and Maharashtra were looking to emulate Telangana in this regard.
“As bankers, you may see loan waiver as an adverse measure, but as policymakers, we see it as a positive step,” he added.