Banks Must Support Long-Term Rural Growth, Says Tummala Nageswara Rao

Telangana Agriculture Minister Tummala Nageswara Rao has called on banks to take a more proactive role in strengthening the rural economy by expanding credit support beyond conventional crop loans and into infrastructure, food processing, and value-added agriculture.

Addressing the 49th quarterly meeting of the State Level Bankers’ Committee (SLBC) at Praja Bhavan in Hyderabad, the minister urged representatives of commercial banks, cooperative banks, regional rural banks, and NABARD to focus on long-term investments that can improve agricultural productivity and rural incomes.

He said Telangana’s banking sector recorded strong growth during 2025-26, with total deposits rising to Rs 9.43 lakh crore and advances reaching Rs 12.33 lakh crore . The state’s credit-deposit ratio stood at 130.78 per cent , well above the national average, reflecting robust credit flow into productive sectors.

According to the minister, priority sector lending touched Rs 4.09 lakh crore , while agricultural credit crossed Rs 1.87 lakh crore . He noted that agricultural lending had exceeded targets, achieving 102 per cent of the annual goal.

Crop loan disbursals during the financial year reached Rs 75,486 crore , achieving more than 84 per cent of the annual credit plan target. Lending under agriculture, allied sectors, and rural infrastructure totalled Rs 1.68 lakh crore , registering over 101 per cent target achievement.

However, Tummala Nageswara Rao expressed concern that a large share of agricultural lending still remained concentrated in short-term crop loans. He stressed the need for greater financing support for sectors such as horticulture, oil palm cultivation, integrated farming, protected farming, dairy, and fisheries through long-term investment loans.

The minister also sought higher priority for financing rural infrastructure projects, including warehouses, cold storages, pack houses, food processing units, drip irrigation systems, solar-powered farming, and farm mechanisation .

Referring to the state government’s farm loan waiver initiative, he said it had helped restore repayment discipline in rural areas. Agricultural NPAs in Telangana had declined from 5.23 per cent to 4.71 per cent , which he described as a sign of farmers’ improved repayment behaviour.

Highlighting the growing role of Farmer Producer Organisations (FPOs), the minister said nearly 1,000 FPOs were operating across the state and required financial assistance for working capital, storage facilities, drones, and processing units.

He also stressed the importance of timely institutional credit for tenant farmers to reduce their dependence on private money lenders. The minister called for coordinated efforts between the government and banking institutions to make Telangana a national model in rural infrastructure, food processing, and value-added agriculture development .