Telangana Minister Urges Banks to Strengthen Rural Economy Beyond Farm Loans
Agriculture Minister Thummala Nageswara Rao asked banks to expand financial support beyond crop lending and play a stronger role in boosting rural development and economic growth across Telangana villages.
- Rural economy support needs stronger banking participation
- Telangana farm loans crossed major targets
- Banks urged to expand beyond crop loans
Agriculture Minister Thummala Nageswara Rao has called on banks to extend their role beyond traditional agricultural and crop lending and actively support the broader rural economy in Telangana. He stressed that stronger financial backing for villages can create long term economic growth and improve livelihoods in rural areas.
The minister made these remarks during the 49th quarterly meeting of the State Level Bankers Committee held at Praja Bhavan in Hyderabad. Representatives from NABARD, cooperative banks, commercial banks and regional rural banks attended the meeting and discussed the banking sector’s contribution to state development.
Speaking at the meeting, Thummala said financial institutions should become more active partners in strengthening village economies instead of limiting their focus only to crop credit. He noted that rural progress depends on wider financial support that reaches multiple sectors and activities.
He also highlighted the performance of Telangana’s banking sector, saying total deposits in the state are expected to reach Rs 9.43 lakh crore by the end of the 2025 to 26 financial year, while total advances are projected at Rs 12.33 lakh crore. Telangana recorded a credit deposit ratio of 130.78 percent, which is higher than the national average.
The minister said loans extended to priority sectors reached Rs 4.09 lakh crore, while agricultural lending stood at Rs 1.87 lakh crore. Crop loans touched Rs 75486 crore and achieved 84.34 percent of the annual lending target. He added that loans worth Rs 168401 crore were provided across agriculture, allied sectors and infrastructure, achieving more than 101 percent of the planned target and reflecting continued growth in the state’s banking system.
