Private banks lag on crop loans in drought-hit Nagpur; Collector warns of closing accounts

Nagpur: Despite government orders, private banks are failing farmers on crop loans. DCB Bank, Federal Bank, Kotak Mahindra Bank and South Indian Bank have performed very poorly in disbursing crop loans. Collector Kumar Ashirwad has told these banks to improve. Banks that do not improve their performance have been warned that accounts with them will be closed. Until last month, these banks' crop loan disbursement stood at zero per cent.

After the district was declared drought-hit, farmers are being given various concessions, and crop loans are among them. While nationalised banks disbursed crop loans as expected, private banks have lagged far behind. Collector Ashirwad has directed all banks in the district to take prompt and positive action on farmers' loans.

Karnataka Bank has disbursed 232 per cent and the Maharashtra State Cooperative Bank 103 per cent of their kharif crop loan targets, while some private banks have disbursed only 0 to 5 per cent. The Collector has informed the agencies concerned that accounts with such private banks should be closed and accounts opened with banks that respond. He has also directed that the volume of crop loans disbursed in the kharif season be increased.

A target of Rs 1,500 crore was set for the district for the kharif season. So far Rs 1,066 crore has been disbursed, which is 71 per cent of the target. IDBI Bank has disbursed 32 per cent, HDFC Bank 28 per cent, ICICI Bank 27 per cent, Axis Bank 7 per cent, IndusInd Bank 5 per cent, IDFC First Bank 4 per cent and RBL Bank 4 per cent. Crop loan disbursement will be reviewed again this month.