Dip in crop loan disbursement by banks continues to worry admin

Source: The Hitavada      Date: 01 Jul 2018 10:28:33


By Kartik Lokhande,


Bank-wise crop loan distribution in Nagpur Divn 

Bank   Crop Loan


                                Target     Distribution
Distt Central Co-op Banks   Rs 1041.5752 cr Rs 590.0252
Nationalised Banks Rs 2499.76 cr Rs 277.5014 cr
Rural Banks Rs 259.42 cr Rs 39.9557 cr
Total Rs 3800.7552 cr Rs 907.4823 cr


In Kharif-2017, 50 per cent of the target for crop loan disbursement to farmers had been met on June 30. However, this year, only 30 per cent of the target of crop loan disbursement could be achieved till the last day of June.

This drop in crop loan disbursement by banks continues to worry the district administration.
According to officials familiar with the situation, the dip in crop loan disbursement for Kharif agricultural season is State-wide phenomenon. “The banks are reluctant in giving crop loan. For, there is a kind of fear psychosis among the bank officers that the crop loans might add to the non-performing assets of the respective banks. Given the recent action against bank officials in connection with the non-performing assets, the bank officers are trying to avoid disbursement of crop loan,” said a senior officer in Revenue Department on the condition of anonymity.

Till June 20, only 17 per cent of the target of crop loan disbursement was met by Nagpur District Central Co-operative Bank Limited (NDCCB), nationalised banks, and rural banks put together. Dr Vijay Zade, Commissioner (Co-operatives); and Ashwin Mudgal, District Collector, had then pulled up officials of nationalised banks and had directed them to expedite disbursement of crop loans to farmers. Still, till June 25, only 17.60 per cent of crop loan got disbursed. Between June 25 and June 30, crop loan disbursement increased to 30 per cent due to the push by the district administration.

Nagpur district has got crop loan distribution target of Rs 1,066.05 crore. Of this, NDCCB is expected to distribute loans to the tune of Rs 84.55 crore considering its financial condition. The nationalised banks are expected to distribute loan of Rs 950.35 crore and rural banks are given target of distributing loans of Rs 31.15 crore to farmers. According to an official, crop loan distribution this time should be no worry for the bank officials as the State Government has extended benefits of crop loans to farmers and the farmers are willing to get fresh loans.





As far as Nagpur Division is concerned, the figures reveal that only 23.88 per cent of crop loan disbursement target could be achieved till June 25. Of a total target of Rs 3,800.7552 crore given to six districts in Nagpur Division for Kharif-2018 season, only Rs 907.4823 crore could be distributed to farmers. While the respective district central co-operative banks met 56.65 per cent of the target for crop loan distribution, nationalised banks distributed only 11.10 per cent of the targeted amount of crop loans.
The rural banks distributed 15.40 per cent of the targeted amount of crop loans to farmers.