Banks must reach farmers’ doorsteps, says Deputy CM Bhatti

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has urged banks to move beyond conventional lending and proactively reach farmers to ensure timely credit and boost rural incomes. Addressing the SLBC meeting, he stressed that banking success should be measured by outcomes such as higher farm productivity, new industries and jobs.

Hyderabad: Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has called upon banks to move beyond conventional lending and reach farmers at their doorsteps to ensure timely credit and improve rural incomes. 

He urged the banking and financial sectors to become key partners in Telangana’s goal of becoming a $1 trillion economy by 2034 and a $3 trillion economy by 2047.

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Addressing the 50th State Level Bankers’ Committee (SLBC) meeting at Mahatma Jyotirao Phule Praja Bhavan on Wednesday, Bhatti Vikramarka said banking performance should not be measured merely by loan disbursements but by the outcomes generated through credit including higher farm productivity, improved rural incomes, new industries, jobs and private investment.

“Farmers should not chase banks for loans. Instead, banks should reach out to farmers,” he said, calling for dairy, fisheries, horticulture, palm oil and food processing to be brought into the formal credit system.

The Deputy Chief Minister said banks extended Rs 52,337 crore in agricultural loans as of June 2026, but stressed that timely availability of credit was more important than mere sanctioning of  loans. Banks should examine the reasons behind a farmer’s inability to repay instead of limiting themselves to recovery measures, he said.

Bhatti Vikramarka also stressed the need for time-bound credit delivery to MSMEs and startups. Banks should ensure clear timelines for loan applications, sanctions and disbursals. He noted that 16,265 proposals worth Rs 4,463 crore had been approved under the CGTMSE scheme during the quarter and urged banks not to burden entrepreneurs with collateral requirements.

He also pointed to nearly 19.13 lakh Jan Dhan accounts with zero balance, stating that financial inclusion should go beyond opening accounts to promoting savings, insurance and credit.