Now Reading: Bhatti seeks outcome-based banking as farm credit hits Rs 52,337 crore
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Bhatti seeks outcome-based banking as farm credit hits Rs 52,337 crore
Telangana deputy chief minister Bhatti Vikramarka has called for a shift to outcome-based banking, saying lenders must assess whether farm credit is actually boosting productivity and incomes. Addressing the 50th State-Level Bankers'…
Telangana deputy chief minister Bhatti Vikramarka has called for a shift to outcome-based banking, saying lenders must assess whether farm credit is actually boosting productivity and incomes. Addressing the 50th State-Level Bankers' Committee meeting on Wednesday, he noted that banks had extended Rs 52,337 crore in agriculture credit by June, yet 19.13 lakh Jan Dhan accounts remained with zero balances.
Bhatti urged banks to proactively identify eligible beneficiaries and expand credit to allied sectors such as dairy, fisheries, horticulture and food processing. He said loan processing should have transparent timelines, and banks must examine reasons for repayment failures rather than focusing only on recovery. On financial inclusion, he stressed that opening accounts is not enough, banks must encourage use of savings, insurance and credit products.
The deputy CM outlined a 'Telangana Rising 2047' banking roadmap with annual targets for agriculture, MSMEs, startups, women entrepreneurs, green finance and digital inclusion to support the state's goal of becoming a $1 trillion economy by 2034.
Indian Opinion Analysis
The zero-balance Jan Dhan accounts figure of 19.13 lakh is a persistent national challenge. Across India, about one-third of such accounts are dormant, undermining the government's financial inclusion push. The real test for banks will be converting these accounts into active transaction points, especially in rural Telangana where cash dependence remains high. Bhatti's call to link credit with productivity indicators is notable, but the state lacks a formal mechanism to measure farm-level outcomes. The proposed 'Telangana Rising 2047' roadmap, if implemented, would require banks to set annual sectoral lending targets. Watch for the SLBC's next meeting, likely in six months, to see if concrete metrics are adopted.
The state's farm credit disbursal of Rs 52,337 crore by June is nearly two-thirds of its annual target, suggesting banks are on track, but the deputy CM's emphasis on allied sectors signals a strategic pivot. With Telangana aiming for a $1 trillion economy by 2034, the banking roadmap must address the state's low credit-to-GDP ratio, currently around 60 percent, well below the national average. The next signal will be whether the state government follows up with a formal notification on outcome-based lending guidelines.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
