Lok Sabha Question No. 4781 (UNSTARRED), answered on 2018-03-23
Subject: Disbursement of Agriculture Loan by Private Sector Banks
Ministry: FINANCE
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

## Unstarred Question No. 4781

To be answered on Friday, March 23, 2018/Chaitra 2, 1940 (Saka)

## Disbursement of Agriculture Loan by Private Sector Banks

4781. SHRI RAJU SHETTY:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  private  sector  banks  who  recently  received  license  are  disbursing agricultural loan and if so, the details thereof and if not, the reason therefor;
- (b) whether there is any compulsion for private banks to lend a percentage of loans disbursed by them as agricultural loans to farmers and if so, the details thereof;
- (c) the amount of agriculture loan disbursed by private sector banks during the last three years and the current year, bank-wise; and
- (d) if not, the action taken by the Government against them?

## Answer

The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla)

(a) to (d): As per extant directions of Reserve Bank of India (RBI) on Priority Sector Lending (PSL), a target of 18 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent  of  Off-Balance  Sheet  Exposure  (CEOBE)  has  been  prescribed  to  all domestic Scheduled Commercial Banks, including Small Finance Banks, for lending to Agriculture.

Bank-wise  details  of  agricultural  loans  disbursed  (no  of  accounts  and  amount outstanding) by private sector banks (for the last three years and current financial year upto Dec 2017) and Small Finance Banks (for the current financial year upto Dec 2017) as reported by RBI are given in Annexure I and II .

As  per  the  Master  Direction  dated  07.07.2016  on  PSL-Targets  and  Classification issued  by  RBI,  Scheduled  Commercial  Banks  having  any  shortfall  in  lending  to priority sector shall be allocated amounts for contribution to the Rural Infrastructure Development  Fund  (RIDF)  established with  NABARD  and  other  Funds  with NABARD/NHB/SIDBI/ MUDRA Ltd., as decided by the Reserve Bank from time to time. The interest rates on banks' contribution to RIDF or any other Funds, tenure of deposits, etc. shall be fixed by RBI from time to time.

Further,  RBI  directions  provide  that  the  above  mechanism  shall  be  applicable  to Small Finance Banks commencing from the year 2019-20 i.e banks having shortfall in  their  PSL  targets/subtargets  as  on  March  31,  2019,  will  require  to  contribute  to RIDF and other funds in the following year, as directed by RBI.

| Annex I to USQ 4781 for 23.03.2018   | Annex I to USQ 4781 for 23.03.2018           | Annex I to USQ 4781 for 23.03.2018           | Annex I to USQ 4781 for 23.03.2018           | Annex I to USQ 4781 for 23.03.2018           | Annex I to USQ 4781 for 23.03.2018           | Annex I to USQ 4781 for 23.03.2018           |
|--------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Agriculture (Total Priority Sector)  | Agriculture (Total Priority Sector)          | Agriculture (Total Priority Sector)          | Agriculture (Total Priority Sector)          | Agriculture (Total Priority Sector)          | Agriculture (Total Priority Sector)          | Agriculture (Total Priority Sector)          |
| Bank Name                            | Mar-15                                       | Mar-15                                       | Mar-16                                       | Mar-16                                       | Mar-17                                       | Mar-17                                       |
|                                      | Agriculture loan O/s (Total Priority Sector) | Agriculture loan O/s (Total Priority Sector) | Agriculture loan O/s (Total Priority Sector) | Agriculture loan O/s (Total Priority Sector) | Agriculture loan O/s (Total Priority Sector) | Agriculture loan O/s (Total Priority Sector) |
|                                      | No. of A/cs                                  | Balance O/s                                  | No. of A/cs                                  | Balance O/s                                  | No. of A/cs                                  | Balance O/s                                  |
| Axis Bank                            | 417630                                       | 303288623                                    | 633842                                       | 355986291                                    | 994852                                       | 441164590                                    |
| BANDHAN BANK LIMITED                 |                                              |                                              | 3997876                                      | 61181240                                     | 3572886                                      | 77400278                                     |
| Catholic Syrian Bank                 | 113691                                       | 8445785                                      | 130249                                       | 15977297                                     | 128554                                       | 17294560                                     |
| City Union Bank                      | 391016                                       | 30098181                                     | 352094                                       | 33904029                                     | 329706                                       | 43574881                                     |
| Development Credit Bank              | 20001                                        | 15346364                                     | 35986                                        | 17123582                                     | 73203                                        | 21159575                                     |
| Dhanlaxmi Bank                       | 93191                                        | 15953423                                     | 113835                                       | 14144981                                     | 465486                                       | 123969360                                    |
| Federal Bank                         | 419923                                       | 95357415                                     | 412867                                       | 107041312                                    | 2267678                                      | 761672242                                    |
| HDFC Bank                            | 1170896                                      | 533147766                                    | 1916658                                      | 652509527                                    | 1846275                                      | 556854563                                    |
| ICICI Bank                           | 1510120                                      | 497553188                                    | 1681285                                      | 545842982                                    | 588449                                       | 20930161                                     |
| IDFC BANK LIMITED                    |                                              |                                              | 68853                                        | 1282229                                      | 1360353                                      | 117121988                                    |
| Indusind Bank                        | 1044523                                      | 79847318                                     | 1646334                                      | 110218197                                    | 346800                                       | 66222349                                     |
| ING Vysya Bank                       | 39764                                        | 81342237                                     |                                              |                                              |                                              |                                              |
| Jammu & Kashmir Bank                 | 375559                                       | 74527468                                     | 347668                                       | 78714142                                     | 247036                                       | 65827666                                     |
| Karnataka Bank                       | 301134                                       | 59195154                                     | 276473                                       | 58367393                                     | 657925                                       | 77378602                                     |
| Karur Vysya Bank                     | 674879                                       | 64778095                                     | 696884                                       | 78675546                                     | 830197                                       | 228954670                                    |
| Kotak Mahindra Bank                  | 499877                                       | 99198408                                     | 861703                                       | 206892219                                    | 263850                                       | 35727198                                     |
| Lakshmi Vilas Bank                   | 284165                                       | 24125562                                     | 267148                                       | 30861463                                     | 14006                                        | 6563417                                      |
| Nainital Bank                        | 13214                                        | 4642224                                      | 13807                                        | 5233355                                      | 741305                                       | 41571692                                     |
| Ratnakar Bank                        | 410103                                       | 19852821                                     | 601926                                       | 27523037                                     | 416068                                       | 81550277                                     |
| South Indian Bank                    | 286289                                       | 62817979                                     | 380692                                       | 57168029                                     | 441948                                       | 43309359                                     |
| Tamilnad Mercantile Bank             | 356894                                       | 21076845                                     | 398155                                       | 43986729                                     | 127460                                       | 15027992                                     |
| Yes Bank                             | 1847164                                      | 137289829                                    | 3022649                                      | 139814723                                    | 638064                                       | 129167869                                    |
| Total                                | 10270033                                     | 2227884685                                   | 17856984                                     | 2642448303                                   | 16352101                                     | 2972443288                                   |
| Source: RBI                          |                                              |                                              |                                              |                                              |                                              |                                              |

| Annexure II to USQ 4781 for 23.03.2018                | Annexure II to USQ 4781 for 23.03.2018                | Annexure II to USQ 4781 for 23.03.2018                |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Agriculture (Total Priority Sector)                   | Agriculture (Total Priority Sector)                   | Agriculture (Total Priority Sector)                   |
| (no of accounts in actual and amount in Rs. Thousand) | (no of accounts in actual and amount in Rs. Thousand) | (no of accounts in actual and amount in Rs. Thousand) |
| Bank Name                                             | 2017-18 upto Dec, 2017                                | 2017-18 upto Dec, 2017                                |
|                                                       | Agriculture loan O/s (Total Priority Sector)          | Agriculture loan O/s (Total Priority Sector)          |
|                                                       | No. of A/cs                                           | Balance O/s                                           |
| AU SMALL FINANCE BANK LIMITED                         | 18970                                                 | 1523998.48                                            |
| CAPITAL SMALL FINANCE BANK LIMITED                    | 5916                                                  | 6539577.00                                            |
| EQUITAS SMALL FINANCE BANK LIMITED                    | 112190                                                | 5095554.79                                            |
| ESAF SMALL FINANCE BANK LIMITED                       | 975744                                                | 12618589.00                                           |
| FINCARE SMALL FINANCE BANK LIMITED                    | 170115                                                | 1058053.61                                            |
| SURYODAYA SMALL FINANCE BANK LTD.                     | 225963                                                | 408486.75                                             |
| UJJIVAN SMALL FINANCE BANK LIMITED                    | 0                                                     | 0.00                                                  |
| UTKARSH SMALL FINANCE BANK LIMITED                    | 847622                                                | 14106190.12                                           |
| SMALL FINANCE BANK                                    | 2356520                                               | 41350449.75                                           |
| AXIS BANK LIMITED                                     | 899874                                                | 398424038.72                                          |
| BANDHAN BANK LIMITED                                  | 3584428                                               | 34905337.64                                           |
| CATHOLIC SYRIAN BANK LTD                              | 145191                                                | 17711815.53                                           |
| CITY UNION BANK LIMITED                               | 340044                                                | 40084312.16                                           |
| DCB BANK LIMITED                                      | 117794                                                | 21325442.79                                           |
| FEDERAL BANK LTD                                      | 552862                                                | 132819467.42                                          |
| HDFC BANK LTD.                                        | 2544336                                               | 896495114.79                                          |
| ICICI BANK LIMITED                                    | 1919152                                               | 582570232.38                                          |
| IDFC BANK LIMITED                                     | 923814                                                | 40344603.15                                           |
| INDUSIND BANK LTD                                     | 1506066                                               | 127369078.90                                          |
| JAMMU &KASHMIR BANK LTD                               | 351715                                                | 73467870.61                                           |
| KARNATAKA BANK LTD                                    | 232921                                                | 65775427.06                                           |
| KARUR VYSYA BANK LTD                                  | 700696                                                | 79875326.23                                           |
| KOTAK MAHINDRA BANK LTD.                              | 646905                                                | 234164562.76                                          |
| LAKSHMI VILAS BANK LTD                                | 260563                                                | 35312842.56                                           |
| NAINITAL BANK LTD                                     | 14132                                                 | 8415896.82                                            |
| RBL BANK LIMITED                                      | 885014                                                | 44392721.51                                           |
| SOUTH INDIAN BANK LTD                                 | 464116                                                | 84024042.16                                           |
| TAMILNAD MERCANTILE BANK LTD                          | 505285                                                | 47979878.00                                           |
| THE DHANALAKSHMI BANK LTD                             | 135201                                                | 14118910.21                                           |
| YES BANK LTD.                                         | 768501                                                | 179440599.91                                          |
| PRIVATE SECTOR BANKS                                  | 17498610                                              | 3159017521.31                                         |