Banks Must Treat Agricultural Loan Disbursement Seriously: Chief Minister Devendra Fadnavis171st State Level Bankers Committee Meeting Held

Mumbai, May 2026 : Banks must work with a sense of social responsibility rather than focusing only on profits in order to strengthen the state’s agriculture sector, MSMEs and rural economy. In this regard, Chief Minister Devendra Fadnavis instructed nationalised banks to adopt a broader approach and take agricultural and crop loan distribution seriously.

The Chief Minister issued these directions while chairing the 171st meeting of the State Level Bankers Committee (SLBC) at Sahyadri Guest House. Deputy Chief Minister Sunetra Ajit Pawar, Cooperation Minister Babasaheb Patil, Agriculture Minister Dattatray Bharne, Chief Secretary Rajesh Agrawal, senior officials and members of the State Level Bankers Committee were present.

While releasing the Annual Credit Plan 2026-27 through the SLBC, the Chief Minister spoke in detail about loan disbursement in the state, crop loans, the MSME sector and the difficulties faced by farmers.

Chief Minister Fadnavis said that the Annual Credit Plan for this year includes issues related to the agricultural season, various Central government schemes, MSME sector and rural development. However, although credit growth is increasing in most sectors of the state, the continuous decline in the number of loan accounts is a matter of serious concern.

Chief Minister Fadnavis said that credit is increasing, but accounts are not increasing — in fact, they are decreasing. This situation is dangerous and the SLBC needs to focus specifically on it and prepare a strategy. In 2022-23, there were 61.15 lakh accounts in the state. This number came down to 56 lakh in 2023-24, reached 54 lakh in 2024-25 and declined further to only 43 lakh in 2025-26. “A decline from 61 lakh to 43 lakh is extremely serious. It is time to seriously examine what exactly is going wrong,” he said.

Cooperative Banks Performing Better Than Nationalised Banks in Crop Loan Distribution

Pointing out that cooperative banks have performed more effectively than nationalised banks in crop loan distribution, Chief Minister Fadnavis expressed dissatisfaction over the functioning of nationalised banks.

Chief Minister Fadnavis said district central cooperative banks cover 61 per cent of accounts in the state and their performance is 85 per cent. In contrast, nationalised banks cover 26 per cent of accounts but their performance is only 67 per cent. “This means nationalised banks are not showing the expected seriousness regarding crop loans and term loans. This approach must change. This year they should make efforts to achieve at least 80 to 85 per cent of the target,” he said.

Farmers Should Not Face Trouble Due to CIBIL Score Conditions

Chief Minister Fadnavis expressed strong displeasure over farmers being denied crop loans on the basis of CIBIL scores.

“Every loan season brings complaints from every district regarding CIBIL scores. The RBI has clearly stated that CIBIL score conditions are not necessary for crop loans. However, branches cite instructions from headquarters. Therefore, all bank headquarters should issue clear directions that CIBIL score conditions should not be imposed for crop loans,” he clarified.

Concern Over District-wise Performance

The Chief Minister noted that only Sindhudurg and Dhule districts achieved 90 to 100 per cent of their crop loan targets. He said Raigad, Pune, Satara, Kolhapur, Nashik, Jalgaon, Latur, Amravati, Chandrapur and Bhandara districts were in the 73 to 90 per cent category, while performance in Palghar, Ratnagiri, Sangli, Nandurbar and Nanded was below expectations, requiring special attention.

Concern Regarding MSME Sector

Chief Minister Fadnavis said that while lending in the MSME sector is increasing, new accounts are not growing. Referring to the “Tarun” category under the Prime Minister Mudra Yojana, he said that only around 7,500 beneficiaries across the state have availed loans up to Rs 15 lakh under this category so far. “This category can contribute significantly to the economy. Therefore, all banks should set separate targets and implement them effectively,” he said.

SLBC Should Not Remain a Mere Formality

Chief Minister Fadnavis said the SLBC should not remain limited to an annual meeting or printed report. “Only when the spirit and purpose of the SLBC are reflected in actual work will the state’s economic development truly benefit,” he said, adding that names of both high-performing and poorly performing banks should be publicly announced during meetings.

“Banks are not meant only for profits. They are an important part of the country’s economic policy. Therefore, they should work more actively while keeping social responsibility in mind,” the Chief Minister said, appealing to all banks to work in coordination to ensure effective access to credit for farmers, entrepreneurs and ordinary citizens across the state.

Banks Must Be More Active for Women Farmers, Rural Entrepreneurship and Financial Inclusion: Deputy Chief Minister Sunetra Ajit Pawar

Deputy Chief Minister Sunetra Ajit Pawar said Maharashtra’s economy is among the strongest in the country and the role of the banking sector is extremely important in accelerating the state’s economic growth. She laid special emphasis on financial inclusion, women empowerment, rural entrepreneurship and the need for a separate financial policy for women farmers.

Pointing out that the state’s CD ratio stands at 98.02 per cent, she said special efforts are needed to further improve the ratio in districts like Gadchiroli. She appealed to banks to play a more active role in promoting rural entrepreneurship and self-employment. She also noted that schemes such as Jan Dhan Yojana, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Suraksha Bima Yojana have significantly accelerated financial inclusion. She stressed the need to focus more on Aadhaar seeding, RuPay card distribution and account activation.

Highlighting the need for a special financial policy for women empowerment, Sunetra Ajit Pawar said women’s economic empowerment must be strengthened further by providing easy loans to women self-help groups, women entrepreneurs and rural women.

Referring to the United Nations declaring 2026 as the “International Year of Women Farmers”, she said the state has also declared it as Women Agriculture Year. “Women contribute significantly to food security, dairy business, animal husbandry, vegetable production, agro-processing industries and the rural economy. A large number of women in Maharashtra directly participate in farming activities, yet they face many difficulties in accessing independent loans, land ownership, Kisan Credit Cards, mechanisation, technology and markets,” she explained.

Demand for Separate Crop Loan Scheme for Women Farmers

Sunetra Ajit Pawar stressed the need for implementing a special agricultural finance policy for women at the SLBC level and suggested creating a separate crop loan scheme for women farmers. She also highlighted the need to provide easy credit to women self-help groups, SHGs, FPOs and agro-processing industries.

She further suggested providing low-interest loans for agricultural mechanisation to women farmers and considering alternative eligibility criteria for women who actively farm despite not owning land. She also suggested organising women agricultural loan fairs in every district to ensure financial services reach grassroots women directly. This, she said, would help rural women directly benefit from banking and loan schemes.

Highlighting that climate change has increased agricultural risks due to irregular rainfall, heatwaves and hailstorms, she stressed the need to increase the availability of long-term restructuring options along with short-term loans.

Deputy Chief Minister Sunetra Ajit Pawar said that coordination among the government, banks and all related agencies is essential to achieve the goals of “Developed Maharashtra” and “Developed India.”