Mumbai, 21st: To strengthen the state's agriculture, MSME sector, and rural economy, it is essential for banks to operate with a sense of social commitment, rather than focusing solely on profitability. With this objective in mind, Chief Minister Devendra Fadnavis instructed nationalized banks to adopt a broad perspective and prioritize the disbursement of agricultural and crop loans with utmost seriousness.
These directives were issued to the banks during the 171st meeting of the State Level Bankers' Committee (SLBC), held under the chairmanship of Chief Minister Devendra Fadnavis at the Sahyadri Guest House. Present at the meeting were Deputy Chief Minister Sunetra Ajit Pawar, Cooperation Minister Babasaheb Patil, Agriculture Minister Dattatray Bharne, and Chief Secretary Rajesh Agarwal, along with other senior officials and members of the State Level Bankers' Committee.
While unveiling the Annual Credit Plan for 2026-27 through the SLBC platform, the Chief Minister offered detailed observations regarding credit disbursement within the state, crop loans, the MSME sector, and the various challenges currently facing farmers.
Chief Minister Fadnavis noted that this year's Annual Credit Plan incorporates various key aspects related to the agricultural season, diverse schemes of the Central Government, the MSME sector, and rural development. However, he highlighted a matter of grave concern: while the volume of credit disbursed across most sectors in the state is on the rise, the actual number of loan accounts is consistently declining.
Chief Minister Fadnavis stated, "Credit disbursement is increasing, yet the number of accounts is not growing; on the contrary, it is shrinking." He emphasized that this situation is alarming and necessitates a focused approach from the SLBC to formulate a specific strategy to address it. In the year 2022-23, the state recorded 61.15 lakh loan accounts. This figure dropped to 56 lakhs in 2023-24, further declined to 54 lakhs in 2024-25, and has now plummeted to a mere 43 lakhs in 2025-26. “The decline from 61 lakhs to 43 lakhs is a matter of grave concern. The time has come to seriously reflect upon exactly what is going wrong.
**Cooperative Banks Outperform Nationalized Banks in Crop Loan Distribution**
Noting that the performance of cooperative banks in distributing crop loans is more effective compared to nationalized banks, Chief Minister Fadnavis expressed his displeasure regarding the operational methods of the nationalized banks.
Chief Minister Fadnavis stated that District Central Cooperative Banks cover 61 percent of the accounts in the state, and their performance stands at 85 percent. In contrast, despite covering 26 percent of the accounts, the performance of nationalized banks is merely 67 percent. This implies that nationalized banks are not demonstrating the expected level of seriousness regarding crop loans and term loans. It is imperative that this mindset be changed. This year, they must strive to achieve a target of at least 80 to 85 percent.
**Farmers Should Not Be Harassed Over CIBIL Score Conditions**
Chief Minister Fadnavis expressed strong displeasure over instances where farmers are being hindered from obtaining crop loans on the grounds of their CIBIL scores.
‘Whenever the loan season commences, complaints regarding CIBIL scores pour in from every district. The RBI has explicitly clarified that a CIBIL score is not a mandatory requirement for crop loans. However, bank branches often cite instructions from their headquarters as a pretext. Therefore, the headquarters of all banks must issue clear directives ensuring that the CIBIL score condition is not imposed for crop loans,’ he further clarified.
**Concern Over District-wise Performance**
The Chief Minister noted that, in terms of crop loan distribution, only two districts—Sindhudurg and Dhule—have successfully achieved 90 to 100 percent of their targets." Noting that the districts of Raigad, Pune, Satara, Kolhapur, Nashik, Jalgaon, Latur, Amravati, Chandrapur, and Bhandara fall within the 73 to 90 percent performance bracket, he clarified that since the performance in the districts of Palghar, Ratnagiri, Sangli, Nandurbar, and Nanded has been lower than expected, these regions require special attention.
**Concerns Regarding the MSME Sector**
Chief Minister Fadnavis stated that while there is growth in lending within the MSME sector, the number of new accounts is not increasing. Referring to the ‘Tarun’ (Youth) category under the Pradhan Mantri Mudra Yojana, he pointed out that in this category—which covers loans up to ₹15 lakh—there have been only 7,500 beneficiaries across the state so far. This very category has the potential to make a significant contribution to the economy. Therefore, all banks should set specific targets for this initiative and ensure its effective implementation.
**SLBC Should Not Remain a Mere Formality**
Emphasizing that the SLBC (State Level Bankers' Committee) should not be confined merely to annual meetings or printed reports, Chief Minister Fadnavis remarked, “The true benefit of the SLBC to the state's economic development will be realized only if its spirit and objective are translated into concrete action on the ground.” During the meeting, Chief Minister Fadnavis also expressed the need to publicly announce the names of both the high-performing and under-performing banks.
“Banks exist not solely for the sake of profit; they constitute a vital component of the nation's economic policy. Therefore, keeping their social responsibilities in mind, they must operate with greater proactivity.” Chief Minister Fadnavis appealed to all banks to work in close coordination to effectively extend the benefits of credit to the state's farmers, entrepreneurs, and common citizens.
**Banks Must Be More Proactive Regarding Women Farmers, Rural Entrepreneurship, and Financial Inclusion – Deputy Chief Minister Sunetra Ajit Pawar**
Deputy Chief Minister Sunetra Ajit Pawar asserted that Maharashtra’s economy ranks among the most robust in the country, and that the banking sector plays a pivotal role in accelerating the state's economic growth. She placed special emphasis on the need for financial inclusion, women's empowerment, rural entrepreneurship, and the formulation of distinct financial policies specifically tailored for women farmers.