Lok Sabha Question No. 1539 (UNSTARRED), answered on 2019-07-01
Subject: Loan by Cooperative Banks
Ministry: FINANCE
Asked by: Kinjarapu Ram Mohan Naidu

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

Unstarred Question No. 1539 To be answered on Monday, July 01, 2019/Ashadha 10, 1941 (Saka)

## Loan by Cooperative Banks

## 1539. SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state:

- (a) whether the percentage of loans disbursed by cooperative banks in the agriculture sector has increased over the last few years;
- (b) if so, the details thereof including targets set and achievements made against the targets, State-wise including Andhra Pradesh;
- (c) whether the Government has identified any constraints being faced by cooperative banks in disbursing loans; and
- (d) if so, the details thereof including action taken by the Government in this regard?

Answer The Finance Minister

(Smt Nirmala Sitharaman)

- (a) and (b): National Bank for Agriculture and Rural Development (NABARD) has reported that agriculture credit disbursed by Cooperative Banks in the agriculture sector has increased from ` 1,42,758  crore  in  2016-17  to ` 1,50,321  crore in 2017-18.  It  has  further  increased  to ` 1,53,882 crore in 2018-19.

State-wise  agriculture  credit  disbursement  target  and  achievement  of  Urban  Cooperative Banks for the last three years are furnished in Annexure.

- (c) and (d): To enable Cooperative Banks to meet the crop loan and term loan requirements of farmers, Government has set up two Funds in NABARD, to be met out of the shortfall in priority sector lending targets by commercial banks, as under:
- i.  Short  Term  Cooperative  Rural  Credit  (Refinance)  Fund:  Through  this  Fund  NABARD provides concessional short term refinance to Cooperative Banks for their crop loan lending. Such refinance is given to banks at an interest rate of 4.5% per annum, provided the banks lend to the ultimate borrower at an interest rate of 7% per annum upto an amount of ` 3 lakh per borrower. An amount of ` 45,000 crore has been allocated for the said Fund during 201819.
- ii.  Long  Term  Rural  Credit  Fund  (LTRCF):  This  fund  has  been  set  up  for  the  purpose  of providing  long  term  refinance  support  to  Cooperative  Banks  and  Regional  Rural  Banks  at concessional  rate  of  interest  for  their  lending  towards  investment  activities  in  agriculture. Government has allocated additional resources of ` 15,000 crore to this Fund during 2018-19.

Besides,  the  Government  has  taken  the  following  measures  to  revive  the  Short  Term Cooperative Credit Structure (STCCS):

- a.  Based  on  the  recommendation of Vaidyanathan Committee, Government implemented a revival package for Short Term Cooperative Credit Structure (STCCS) encompassing legal and  institutional  reforms,  measures  to  improve  the  quality  of  management  and  financial assistance as necessary for their democratic, self-reliant and efficient functioning. Under the revival package, Government of India released ` 9,245 crore.
- b. Recognizing the need to revamp ailing Cooperative Banks so that they are able to cater to the needs of farmers at their  doorstep,  the  Union  Government  in  2014  announced implementation of the Scheme for Revival of 23 Unlicensed DCCBs in four States and the entire  share  of  Union  Government  amount  to ` 673.29  crore  under  the  Scheme  has  been released  to  NABARD  for  onward  transmission  to  Cooperative  Banks  as  per  scheme provisions.

The  scheme  guidelines  prescribed  achievement  of  certain  deliverables  by  DCCBs  which, inter  alia,  included  attainment  of  the  minimum  level  of  CRAR,  reduction  of  NPA  level, enhancement  deposits,  building  up  strong  Management  Information  System  (MIS)  and implementation of Core Banking Solution (CBS) etc.

| Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    | Lok Sabha Unstarred Question No. 1539 for 01.07.2019                                    |
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| Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) | Agriculture Credit Disbursement Target and Achievement of Cooperative Banks (Rs. Lakhs) |
| S.No.                                                                                   | State/UT                                                                                | 2016-17                                                                                 | 2016-17                                                                                 | 2017-18                                                                                 | 2017-18                                                                                 | 2018-19(Provisional)                                                                    | 2018-19(Provisional)                                                                    |
|                                                                                         |                                                                                         | Target                                                                                  | Disbursement                                                                            | Target                                                                                  | Disbursement                                                                            | Target                                                                                  | Disbursement                                                                            |
| 1                                                                                       | DELHI                                                                                   | 800.00                                                                                  | 716.91                                                                                  | 1,200.00                                                                                | 498.01                                                                                  | 1,000.00                                                                                | 380.08                                                                                  |
| 2                                                                                       | HARYANA                                                                                 | 10,45,000.00                                                                            | 9,74,697.67                                                                             | 8,35,000.00                                                                             | 10,07,480.70                                                                            | 8,50,900.00                                                                             | 10,49,089.03                                                                            |
| 3                                                                                       | HIMACHAL PRADESH                                                                        | 1,25,000.00                                                                             | 1,42,724.20                                                                             | 1,45,000.00                                                                             | 9,20,885.45                                                                             | 1,35,200.00                                                                             | 3,81,538.75                                                                             |
| 4                                                                                       | JAMMU &KASHMIR                                                                          | 30,000.00                                                                               | 955.07                                                                                  | 25,000.00                                                                               | 1,413.92                                                                                | 25,800.00                                                                               | 2,587.74                                                                                |
| 5                                                                                       | PUNJAB                                                                                  | 18,80,000.00                                                                            | 13,55,701.59                                                                            | 17,20,000.00                                                                            | 9,48,491.92                                                                             | 17,41,800.00                                                                            | 9,55,150.43                                                                             |
| 6                                                                                       | RAJASTHAN                                                                               | 18,10,000.00                                                                            | 14,13,031.10                                                                            | 18,50,000.00                                                                            | 14,72,578.81                                                                            | 19,31,900.00                                                                            | 13,24,528.54                                                                            |
| 7                                                                                       | CHANDIGARH UT                                                                           | 0.00                                                                                    | 0.00                                                                                    | 0.00                                                                                    | 0.00                                                                                    | 0.00                                                                                    | 0.00                                                                                    |
| 8                                                                                       | ARUNACHAL PRADESH                                                                       | 1,100.00                                                                                | 4,823.28                                                                                | 10,600.00                                                                               | 2,065.06                                                                                | 12,600.00                                                                               | 479.17                                                                                  |
| 9                                                                                       | ASSAM                                                                                   | 15,000.00                                                                               | 1,388.88                                                                                | 12,000.00                                                                               | 1,895.13                                                                                | 14,400.00                                                                               | 2,111.77                                                                                |
| 10                                                                                      | MANIPUR                                                                                 | 1,100.00                                                                                | 467.32                                                                                  | 2,200.00                                                                                | 1,878.43                                                                                | 2,600.00                                                                                | 4,074.24                                                                                |
| 11                                                                                      | MEGHALAYA                                                                               | 5,500.00                                                                                | 3,291.71                                                                                | 6,500.00                                                                                | 3,439.38                                                                                | 7,800.00                                                                                | 2,127.93                                                                                |
| 12                                                                                      | MIZORAM                                                                                 | 3,300.00                                                                                | 1,450.54                                                                                | 3,500.00                                                                                | 1,293.99                                                                                | 4,200.00                                                                                | 1,454.50                                                                                |
| 13                                                                                      | NAGALAND                                                                                | 5,000.00                                                                                | 3,498.72                                                                                | 6,200.00                                                                                | 8,788.03                                                                                | 7,400.00                                                                                | 4,031.63                                                                                |
| 14                                                                                      | SIKKIM                                                                                  | 2,400.00                                                                                | 1,415.73                                                                                | 2,800.00                                                                                | 357.97                                                                                  | 3,400.00                                                                                | 475.61                                                                                  |
| 15                                                                                      | TRIPURA                                                                                 | 25,300.00                                                                               | 7,439.39                                                                                | 27,000.00                                                                               | 27,347.93                                                                               | 31,400.00                                                                               | 23,662.87                                                                               |
| 16                                                                                      | A &NISLAND                                                                              | 4,800.00                                                                                | 3,821.54                                                                                | 6,000.00                                                                                | 2,760.38                                                                                | 7,000.00                                                                                | 1,222.59                                                                                |
| 17                                                                                      | BIHAR                                                                                   | 80,000.00                                                                               | 34,215.00                                                                               | 95,000.00                                                                               | 2,54,800.00                                                                             | 98,800.00                                                                               | 85,694.00                                                                               |
| 18                                                                                      | JHARKHAND                                                                               | 35,500.00                                                                               | 323.30                                                                                  | 20,000.00                                                                               | 323.17                                                                                  | 22,600.00                                                                               | 671.91                                                                                  |
| 19                                                                                      | ODISHA                                                                                  | 8,20,000.00                                                                             | 10,31,843.99                                                                            | 9,70,000.00                                                                             | 11,12,478.38                                                                            | 10,29,700.00                                                                            | 12,97,160.69                                                                            |
| 20                                                                                      | WEST BENGAL                                                                             | 4,77,000.00                                                                             | 3,47,417.63                                                                             | 5,75,000.00                                                                             | 3,99,156.60                                                                             | 5,95,400.00                                                                             | 4,51,963.27                                                                             |
| 21                                                                                      | CHHATTISGARH                                                                            | 2,60,000.00                                                                             | 3,31,845.85                                                                             | 2,50,000.00                                                                             | 4,39,700.30                                                                             | 2,50,600.00                                                                             | 3,70,078.92                                                                             |
| 22                                                                                      | MADHYA PRADESH                                                                          | 13,00,000.00                                                                            | 11,87,786.06                                                                            | 13,33,000.00                                                                            | 12,78,750.35                                                                            | 14,05,800.00                                                                            | 13,21,469.01                                                                            |
| 23                                                                                      | UTTARAKHAND                                                                             | 1,60,000.00                                                                             | 56,235.84                                                                               | 1,10,000.00                                                                             | 1,26,044.47                                                                             | 1,00,600.00                                                                             | 1,28,925.34                                                                             |
| 24                                                                                      | UTTAR PRADESH                                                                           | 7,50,000.00                                                                             | 6,46,630.72                                                                             | 11,50,000.00                                                                            | 3,93,281.94                                                                             | 13,07,000.00                                                                            | 5,57,290.12                                                                             |
| 25                                                                                      | GOA                                                                                     | 13,500.00                                                                               | 3,751.40                                                                                | 13,500.00                                                                               | 3,422.88                                                                                | 15,100.00                                                                               | 3,302.47                                                                                |
| 26                                                                                      | GUJARAT                                                                                 | 12,55,000.00                                                                            | 12,91,123.61                                                                            | 14,70,000.00                                                                            | 13,75,967.88                                                                            | 14,30,600.00                                                                            | 14,22,615.77                                                                            |
| 27                                                                                      | MAHARASHTRA                                                                             | 18,11,500.00                                                                            | 17,11,569.74                                                                            | 17,15,000.00                                                                            | 11,88,537.43                                                                            | 17,50,700.00                                                                            | 12,92,799.12                                                                            |
| 28                                                                                      | D &NHAVELI UT                                                                           | 300.00                                                                                  | 158.00                                                                                  | 600.00                                                                                  | 0.00                                                                                    | 700.00                                                                                  | 0.00                                                                                    |
| 29                                                                                      | DAMAN &DIU UT                                                                           | 700.00                                                                                  | 0.00                                                                                    | 700.00                                                                                  | 0.00                                                                                    | 800.00                                                                                  | 0.00                                                                                    |
| 30                                                                                      | ANDHRA PRADESH                                                                          | 7,52,500.00                                                                             | 9,62,034.26                                                                             | 9,00,000.00                                                                             | 11,08,557.30                                                                            | 10,02,600.00                                                                            | 11,57,166.31                                                                            |
| 31                                                                                      | TELANGANA                                                                               | 4,55,000.00                                                                             | 5,93,381.17                                                                             | 5,00,000.00                                                                             | 5,65,750.56                                                                             | 6,67,400.00                                                                             | 5,60,829.67                                                                             |
| 32                                                                                      | KARNATAKA                                                                               | 7,60,000.00                                                                             | 11,91,670.75                                                                            | 8,12,500.00                                                                             | 11,61,912.63                                                                            | 8,49,600.00                                                                             | 11,28,066.14                                                                            |
| 33                                                                                      | KERALA                                                                                  | 3,38,000.00                                                                             | 4,29,046.62                                                                             | 3,55,000.00                                                                             | 4,77,199.81                                                                             | 5,04,100.00                                                                             | 3,98,733.95                                                                             |
| 34                                                                                      |                                                                                         | 2,700.00                                                                                | 306.92                                                                                  | 1,700.00                                                                                | 217.03                                                                                  | 1,800.00                                                                                | 795.12                                                                                  |
|                                                                                         | PUDUCHERRY                                                                              |                                                                                         |                                                                                         |                                                                                         |                                                                                         |                                                                                         |                                                                                         |
| 35                                                                                      | TAMILNADU                                                                               | 7,74,000.00                                                                             | 5,41,065.48                                                                             | 6,75,000.00                                                                             | 7,44,837.80                                                                             | 6,88,700.00                                                                             | 14,57,719.66                                                                            |
|                                                                                         | GRAND TOTAL                                                                             | 150,00,000.00                                                                           | 142,75,829.99                                                                           | 156,00,000.00                                                                           | 150,32,113.64                                                                           | 165,00,000.00                                                                           | 153,88,196.35                                                                           |
|                                                                                         | Source: NABARD                                                                          |                                                                                         |                                                                                         |                                                                                         |                                                                                         |                                                                                         |                                                                                         |