Lok Sabha Question No. 121 (UNSTARRED), answered on 2024-07-22
Subject: Data on Credit Flow from Banks to Agriculture Sector
Ministry: FINANCE
Asked by: Dr. K Sudhakar

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

## LOK SABHA

Unstarred Question No. 121 Answered on Monday, July 22, 2024/31 Ashadha, 1946 (Saka)

## DATA ON CREDIT FLOW FROM BANKS TO AGRICULTURE SECTOR

## 121 Dr. K Sudhakar:

Will the Minister of FINANCE be pleased to state:

- a) whether the Government has any data on the credit flow from scheduled commercial banks both public and private banks to the agriculture sector in the country and if so, the details regarding the same during the period of 2004-2014 and 2014-2024;
- b) whether the Government has any data regarding the meeting of priority lending credit by scheduled commercial banks of Karnataka and if so, the details thereof, bank-wise;
- c) whether the Government has noticed that even today certain banks indeed rely upon CIBIL scores to determine the creditworthiness of a farmer and if so, the details thereof;
- d) whether any instructions have been issued by the Government to do away with CIBIL score for agriculture credit loans and if so, the details thereof; and
- e) the total amount  of  agricultural credit loans  issued  by  scheduled  commercial  banks  of Chikkaballapur Lok Sabha Constituency in the State of Karnataka with details of individual banks?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) The details of the credit flow are provided at annexure-I.

(b) As per information provided by RBI, the data on priority sector lending by scheduled commercial banks in the state of Karnataka for the period 2009 to 2023 is given at annexure-II.

(c)  to  (e):  Banks  make  credit-related  decisions  based  on  their  Board-approved  policies,  broad regulatory  guidelines,  and  statutory  provisions.  The  RBI  has  not  issued  any  specific  instructions requiring a credit score from Credit Information Companies for granting agricultural loans to farmers. However, RBI vide their circular dated 27 June 2014, has advised banks and financial institutions to include  in  their  credit  appraisal  processes/loan  policies,  suitable  provisions  for  obtaining  Credit Information Reports (CIR) from one or more Credit Information Companies (CICs) so that the credit decisions  are  based  on  information  available  in  the  system.  Further,  RBI,  vide  its  circular  dated 01.04.2024,  advised  banks  to  use  an  alternative  framework  of  due  diligence  as  part  of  the  credit appraisal exercise other than the 'No Due Certificate'. The credit history check through CIC is one such alternate framework suggested. The constituency-wise information is not centrally maintained.

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## Statement referred to in part (a) of Lok Sabha Un-Starred Question No.121 on Data on Credit Flow from Banks to Agriculture Sector due for answer on 22.07.2024

The details of agriculture credit disbursement by scheduled commercial banks both public and private banks to the agriculture sector in the country for the period of 2004-2024

(Amount in Rs. crore)

|   S.no. | Financial Year   | Crop Loan   | Term Loan   | Total Loan   |
|---------|------------------|-------------|-------------|--------------|
|       1 | 2003-04          | 26,192      | 26,249      | 52,441       |
|       2 | 2004-05          | 38,791      | 42,690      | 81,481       |
|       3 | 2005-06          | 57,640      | 67,836      | 1,25,476     |
|       4 | 2006-07          | 92,846      | 73,639      | 1,66,485     |
|       5 | 2007-08          | 1,16,966    | 64,121      | 1,81,087     |
|       6 | 2008-09          | 1,47,818    | 81,133      | 2,28,951     |
|       7 | 2009-10          | 1,89,908    | 95,892      | 2,85,800     |
|       8 | 2010-11          | 2,28,391    | 1,17,486    | 3,45,877     |
|       9 | 2011-12          | 2,66,928    | 1,01,688    | 3,68,616     |
|      10 | 2012-13          | 3,14,950    | 1,17,540    | 4,32,490     |
|      11 | 2013-14          | 3,64,164    | 1,63,342    | 5,27,506     |
|      12 | 2014-15          | 4,15,736    | 1,88,640    | 6,04,376     |
|      13 | 2015-16          | 4,19,931    | 2,23,024    | 6,42,954     |
|      14 | 2016-17          | 4,52,576    | 3,47,205    | 7,99,781     |
|      15 | 2017-18          | 4,97,322    | 3,47,205    | 8,44,527     |
|      16 | 2018-19          | 4,83,805    | 4,71,017    | 9,54,823     |
|      17 | 2019-20          | 5,38,795    | 5,31,241    | 10,70,036    |
|      18 | 2020-21          | 5,58,121    | 6,36,583    | 11,94,704    |
|      19 | 2021-22          | 7,03,804    | 7,12,160    | 14,15,964    |
|      20 | 2022-23          | 8,99,057    | 7,77,471    | 16,76,529    |
|      21 | 2023-24*         | 10,32,426   | 9,53,599    | 19,86,025    |

Annexure-II

## Statement referred to in part (b) of Lok Sabha Un-Starred Question No.121 on Data on Credit Flow from Banks to Agriculture Sector due for answer on 22.07.2024

Total Priority Sector Lending by Scheduled Commercial Banks in Karnataka

(Amount in Rs. Crore)

|   Year | Number of Accounts   | Balance outstanding   |
|--------|----------------------|-----------------------|
|   2009 | 33,79,874            | 71,863.43             |
|   2010 | 40,47,384            | 82,475.35             |
|   2011 | 38,97,943            | 91,856.43             |
|   2012 | 44,99,933            | 99,392.53             |
|   2013 | 47,64,525            | 1,16,989.75           |
|   2014 | 54,17,823            | 1,57,523.24           |
|   2015 | 60,05,404            | 1,83,839.69           |
|   2016 | 64,02,717            | 2,11,283.36           |
|   2017 | 65,43,307            | 2,02,894.49           |
|   2018 | 76,71,942            | 2,06,294.99           |
|   2019 | 96,14,160            | 2,09,922.33           |
|   2020 | 1,05,10,024          | 2,13,007.82           |
|   2021 | 1,08,98,541          | 2,14,824.07           |
|   2022 | 1,10,34,354          | 2,55,504.64           |
|   2023 | 1,22,17,227          | 2,68,541.23           |