Hyderabad, May 22 (Maxim News): Minister Tummala Nageswara Rao has called for banks to be active partners in further strengthening the rural economy of Telangana. Agriculture Minister Tummala Nageswara Rao participated in the State Level Bankers Committee meeting held at Praja Bhavan. Speaking on the occasion, Minister Tummala clarified that bankers need to not limit themselves to traditional crop loans only, but also to significantly increase the distribution of loans to the food processing sector along with the creation of infrastructure in rural areas. He said that this is the right time to invest in rural Telangana and he hoped that banks should utilize this opportunity.
Speaking on the occasion, Minister Tummala said, “It is a great privilege that the credit-deposit (CD) ratio in Telangana has reached a record high of 130.78 percent. Currently, bank deposits in the state are at Rs. 9.43 lakh crore, while advances (loans) have reached Rs. 12.33 lakh crore. The state has made excellent progress in the distribution of loans to the agricultural sector. It is heartening to record a progress of 102 percent, more than the set target. The distribution of crop loans in the state has reached Rs. 75,486 crore, and banks have provided a total of Rs. 1.68 lakh crore of loans to the agricultural sector. The credit culture has been revived in rural areas due to the ambitious farmer loan waiver program undertaken by the government. Due to the government’s decisions, agricultural non-performing assets (bad debts) in banks have reduced from 5.23 percent to 4.71 percent. There are immense opportunities for oil palm cultivation in Telangana along with the horticulture sector. Banks should give priority to these sectors. Banks should provide generous loans for the construction of warehouses, cold storages and silos to increase crop storage capacity. Bankers also have the responsibility to provide adequate financial support to about a thousand farmer producer associations in the state. The government has allocated a budget of Rs. 147.91 crore to modernize agriculture and promote mechanization. Banks should take responsibility to ensure that tenant farmers get timely crop loans without any hassle. Along with this, credit facilities for environmentally friendly solar farming and micro irrigation methods should be significantly increased, the minister said. (Maxim News)
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