Lok Sabha Question No. 1715 (UNSTARRED), answered on 2017-03-10
Subject: Loan to Farmers
Ministry: FINANCE
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI

## Government of India

Ministry of Finance

Department of Financial Services

Lok Sabha

Unstarred Question No. 1715.

To be answered on 10 th  March, 2017/Phalguna 19, 1938 (Saka)

## Loan to Farmers

1715. SHRI RAJU SHETTY:

Will the Minister of FINANCE be pleased to state:

- (a) whether there is any binding on nationalized banks for providing loan to farm sector and if so, the details thereof;
- (b) the details of the percentage of the total loan disbursed to farm sector along with the amount of loan given to farmers as crop loan during the last three years; and
- (c) the details and the percentage of industrial farm loan and crop loan turned as Non Performing Assets during the said period?

## Answer

## The Minister of State in the Ministry of Finance (Shri  Santosh Kumar Gangwar)

(a)  &  (b):   Reserve Bank of India (RBI) has reported that as per extant guidelines on Priority Sector Lending, a target of 18 per cent of Adjusted Net Bank Credit (ANBC) or Credit  Equivalent  of  Off-Balance  Sheet  Exposure  (CEOBE),  whichever  is  higher,  has been prescribed to Domestic Scheduled Commercial Banks (excluding Regional Rural Banks) for lending to Agriculture, of which Farm Sector is a part. Further, Government fixes  agriculture  credit  disbursement  targets  for  the  banking  sector  every  year  and banks  have  consistently  surpassed  these  targets.  The  details  of  agriculture  credit targets fixed by the Government and the achievement by the Banks, for the last three years (2013-14 to 2015-16)  are given as under:

|                  |                                                                                     |                                                                                     |                                                                                     | (Rs.                                       | In Crores)                                 |
|------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------|
| S. No. disbursed | Year Target for Agriculture loan %of Crop Loan (Out of Total Agriculture Loan)(5/4) | Year Target for Agriculture loan %of Crop Loan (Out of Total Agriculture Loan)(5/4) | Year Target for Agriculture loan %of Crop Loan (Out of Total Agriculture Loan)(5/4) | Total Agriculture Loan disbursed Crop Loan | Total Agriculture Loan disbursed Crop Loan |
| 1                | 2                                                                                   | 3                                                                                   | 4                                                                                   | 5                                          |                                            |
| 1                | 2013-14                                                                             | 7,00,000                                                                            | 7,30,122.62                                                                         | 5,48,435.18                                | 75.12                                      |
| 2                | 2014-15                                                                             | 8,00,000                                                                            | 8,45,328.23                                                                         | 6,35,411.97                                | 75.17                                      |
| 3                | 2015-16                                                                             | 8,50,000                                                                            | 8,77,527.04                                                                         | 6,40,267.93                                | 72.96                                      |

Source: NABARD

(c):  RBI  and  NABARD have reported that the requisite details  and  the  percentage  of industrial  farm  loan  and  crop  loan  turned  as  Non  Performing  Assets  are  not  centrally maintained.