Lok Sabha Question No. 1495 (UNSTARRED), answered on 2019-07-01
Subject: Loan to Farmers by PSBs
Ministry: FINANCE
Asked by: Balak Nath

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

LOK SABHA Unstarred Question No. 1495

To be answered on Monday, July 01, 2019/Ashadha 10, 1941 (Saka) Loan to Farmers by PSBs

1495. SHRI BALAK NATH:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the total amount of loan disbursed to farmers by Public Sector Banks (PSBs) during each of the last three years and the current year, bankwise;

(b) the rate of interest on agriculture loan to farmers being charged by various banks  across  the  country  during  the  said  period,  bank-wise  and  State-wise including Rajasthan; and

(c)  whether  any  assessment  study  has  been  made  by  the  Government  for estimated credit flow to the agriculture sector and if so, the details thereof?

## Answer

The Finance Minister (Smt. Nirmala Sitharaman)

(a): Bank-wise details of agriculture loans disbursed to farmers by Public Sector Banks  (PSBs)  during  the  last  three  years,  as  reported  by  National  Bank  for Agriculture and Rural Development (NABARD) is given in Annexure.

(b): Reserve Bank of India (RBI) has deregulated the interest rate on advances sanctioned  by  Scheduled  Commercial  Banks  and  these  interest  rates  are determined by banks with the approval of their respective Board of Directors subject to the regulatory guidelines on interest rate on advances contained in RBI's  Master  Direction  dated  03.03.2016.  Interest  rates  on  loans  could  vary wise and State-wise information on interest rates charged on agriculture loan from time to time and be based on credit profile of the borrowers. The bankby various banks across the country are not maintained centrally.

With a view to ensure availability of agriculture credit at a reduced interest rate of  7%  p.a.  to  the  farmers,  the  Government  of  India  in  the  Department  of Agriculture, Cooperation and Farmers' Welfare implements an interest subvention scheme for short term crop loans up to Rs. 3.00 lakh. The scheme provides  interest  subvention  of  2%  per  annum  to  Banks  on  use  of  their  own resources.  Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.

- (c): NABARD has intimated as follows:
-  Agriculture Credit Target is allocated considering Gross Cropped Area, Gross  Irrigated  Area,  past  achievements  and  targets,  regional  distribution  of credit flow to address the regional disparity.
-  Credit flow to agriculture during the last six years is as under:

(Rs.Crore)

| Years       | Crop Loan Disb.   | Term Loan Disb.   | Total Loan Disb.   |
|-------------|-------------------|-------------------|--------------------|
| 2013-14     | 5,48,435          | 1,81,687          | 7,30,122           |
| 2014-15     | 6,35,412          | 2,09,916          | 8,45,328           |
| 2015-16     | 6,65,313          | 2,50,197          | 9,15,510           |
| 2016-17     | 6,89,457          | 3,76,298          | 10,65,756          |
| 2017-18     | 7,53,214          | 4,09,403          | 11,62,617          |
| 2018-19 (p) | 7,50,376          | 5,04,386          | 12,54,762          |

(p) provisional

-  Agriculture credit grew at a Compound Annual Growth Rate (CAGR) of 11.4% from Rs.7.3 lakh crore in 2013-14 to Rs.12.55 lakh crore 2018-19(p).
-  Agriculture accounts grew at a CAGR of 8.9% from 8.06 crore in 201314 to 12.33 crore in 2018-19(p).
-  The share of investment credit has grown from 25% in 2013-14 to 40% in 2018-19(p) which contributes to capital formation.
-  The  coverage  of  small  and  marginal  farmer's  accounts  has  increased from 63% in 2013-14 to 74% in 2018-19(p).
-  Small  and  Marginal  farmers  share  in  agriculture  credit  has  improved from 44% in 2013-14 to 50% in 2018-19(p).

| S.No.   | Bank Name                         | Total Agriculture Credit Disb   | Total Agriculture Credit Disb   |
|---------|-----------------------------------|---------------------------------|---------------------------------|
|         |                                   | 2016-17                         | 2017-18                         |
| 1       | ALLAHABAD BANK                    | 10,238.82                       | 13,005.01                       |
| 2       | ANDHRA BANK                       | 22,292.80                       | 26,646.07                       |
| 3       | BANK OF BARODA                    | 21,795.61                       | 24,439.74                       |
| 4       | BANK OF INDIA                     | 25,337.40                       | 29,534.18                       |
| 5       | BANK OF MAHARASHTRA               | 7,752.19                        | 5,963.45                        |
| 6       | BHARATIYA MAHILA BANK LTD.*       | 4.41                            | 0.00                            |
| 7       | CANARA BANK                       | 58,691.32                       | 67,901.50                       |
| 8       | CENTRAL BANK OF INDIA             | 20,455.94                       | 19,221.81                       |
| 9       | CORPORATION BANK                  | 16,357.27                       | 15,975.91                       |
| 10      | DENA BANK                         | 6,795.07                        | 6,971.35                        |
| 11      | IDBI BANK LIMITED                 | 11,935.80                       | 17,511.41                       |
| 12      | INDIAN BANK                       | 20,789.89                       | 29,763.76                       |
| 13      | INDIAN OVERSEAS BANK              | 29,518.84                       | 30,968.12                       |
| 14      | ORIENTAL BANK OF COMMERCE         | 17,151.88                       | 10,007.57                       |
| 15      | PUNJAB AND SIND BANK              | 10,593.78                       | 12,019.10                       |
| 16      | PUNJAB NATIONAL BANK              | 61,263.76                       | 74,968.22                       |
| 17      | STATE BANK OF BIKANER AND JAIPUR* | 11,593.54                       | 0.00                            |
| 18      | STATE BANK OF HYDERABAD*          | 23,463.14                       | 0.00                            |
| 19      | STATE BANK OF INDIA               | 125,270.11                      | 167,195.76                      |
| 20      | STATE BANK OF MYSORE*             | 7,760.70                        | 0.00                            |
| 21      | STATE BANK OF PATIALA*            | 13,220.56                       | 0.00                            |
| 22      | STATE BANK OF TRAVANCORE*         | 6,930.29                        | 0.00                            |
| 23      | SYNDICATE BANK                    | 18,213.16                       | 20,475.06                       |
| 24      | UCO BANK                          | 5,740.11                        | 5,115.70                        |
| 25      | UNION BANK OF INDIA               | 22,956.30                       | 22,040.80                       |
| 26      | UNITED BANK OF INDIA              | 7,146.82                        | 7,873.37                        |
| 27      | VIJAYA BANK                       | 10,653.95                       | 14,328.49                       |
|         | Total                             | 593,923.48                      | 621,926.36                      |

Source: NABARD *Merged with SBI from 2017-18 Annexure to Lok Sabha USQ 1495 for 01.07.2019