Banks in Telangana disbursed crop loans totalling ₹20,583.79 crore for the kharif season up to September in the current fiscal.
The disbursement was a little over 70.39% of the target of ₹29,244.25 crore, according to information provided at a meeting of the State Level Bankers’ Committee here on Monday. The total agriculture loan disbursed by the banks, up to September, stood at ₹25,848.29 crore or 52% of the target was achieved.
Chief General Manager of State Bank of India’s Hyderabad Circle Om Prakash Mishra presided over the meeting, which was co-chaired by B. Ramesh Babu, Deputy Managing Director of SBI. A release from SLBC said Finance Minister T. Harish Rao participated in the meeting.
A report, presented at the meeting, which was the 25th Quarterly Review on the performance of the banks under the Annual Credit Plan of 2019-20, said as per the VLR and PV (interest subvention) scheme, banks allowed the benefit of interest to those farmers who promptly repaid. The banks subsequently submitted claims totalling ₹804.88 crore to the Telangana Department of Agriculture.
The Finance Department in May issued an order directing payment of ₹256 crore. However, funds were yet to be released through Treasury. “Government of Telangana is requested to expedite reimbursement of VLR/PV claims of banks as early as possible, as the banks’ auditors are insisting for making a provision for the amount, as these receivables are more than two years old,” the report said.
In a presentation on the performance of the banks, during the six months ended September, Mr. Mishra, who is president of the SLBC, said total deposits of the banks grew 5.99% during the period to ₹4,81,507.89 crore. Total advances at ₹5,35,840.18 crore were higher marginally by ₹1,966.11 crore or 0.37% from the March 2019 level.
