Bhatti Vikramarka Urges Banks to Deliver Credit at Farmers' Doorsteps

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has urged banks to move beyond conventional lending practices and reach farmers directly at their doorsteps to guarantee timely credit and enhance rural incomes across Telangana.

Speaking at the 50th State Level Bankers’ Committee (SLBC) meeting held at Mahatma Jyotirao Phule Praja Bhavan in Hyderabad on Wednesday, the Deputy Chief Minister stated that banking performance should not be judged merely by loan disbursement numbers. Instead, success must be evaluated through tangible outcomes, including higher agricultural productivity, improved rural livelihoods, new industrial development, employment generation, and private investment.

Bhatti Vikramarka noted that farmers should not have to chase financial institutions for financial assistance. He called on lenders to proactively expand the formal credit network to cover allied sectors such as dairy, fisheries, horticulture, palm oil cultivation, and food processing.

Highlighting recent lending figures, the Finance Minister said banks in the state had extended Rs 52,337 crore in agricultural loans as of June 2026. However, he emphasized that ensuring credit is available on time remains far more critical than simply sanctioning funds. He also urged financial institutions to investigate the root causes behind a borrower's inability to repay loans rather than focusing solely on recovery actions.

The Deputy Chief Minister also underscored the need for financial institutions to become key partners in achieving Telangana’s long-term economic targets of becoming a $1 trillion economy by 2034 and a $3 trillion economy by 2047.

Addressing the needs of micro, small, and medium enterprises (MSMEs) and startups, Bhatti Vikramarka called for strict timelines governing loan applications, sanctions, and disbursals. He noted that 16,265 proposals valued at Rs 4,463 crore were approved under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme during the quarter, asking banks to avoid burdening entrepreneurs with collateral demands.

Furthermore, Bhatti Vikramarka pointed out that nearly 19.13 lakh Jan Dhan accounts in the state currently hold zero balances. He emphasized that genuine financial inclusion must extend beyond merely opening bank accounts to actively encouraging regular savings, credit access, and insurance adoption among account holders.