Banking overhaul essential for Telangana's US$ 3 trillion target: Deputy CM

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka on Wednesday asserted that the State's ambitious economic goals—a US$ 1 trillion economy by 2034 and US$ 3 trillion by 2047—cannot be achieved through government expenditure alone. Addressing the 50th State Level Bankers' Committee (SLBC) meeting at Mahatma Jyotirao Phule Praja Bhavan in Hyderabad, he said large-scale private investments, strong financial institutions, deeper financial markets, and innovative financing mechanisms are essential.

Vikramarka stressed that banking and financial sectors must become key partners in transforming Telangana into a US$ 3 trillion economy. He noted that the Telangana Rising 2047 vision document is not merely a statement of intent, and achieving its goals would require a fundamental transformation in the banking sector. He called for the formulation of a future-oriented banking strategy aligned with the vision's objectives.

The Deputy Chief Minister said banks should not limit themselves to reviewing whether they met assigned targets. Instead, they should periodically assess the development achieved through the loans extended—counting the industries established and jobs created. He argued that the real measure of banking performance is the extent to which agricultural productivity increases, rural incomes improve, and private investment is mobilised.

Highlighting agriculture as the foundation of the State's economy, Vikramarka said farmers should receive loans precisely when needed, and eligible farmers should not have to approach banks repeatedly. 'Farmers should not have to search for banks for loans. It should be the other way round. The banking system should reach farmers,' he said.

He urged banks to bring allied sectors—such as dairy, fisheries, horticulture, oil palm, and food processing—into the formal credit system. The objective should not merely be providing credit, but converting that credit into higher and sustainable agricultural income. Banks should also analyse why some farmers are unable to repay loans, incorporating factors like productivity, market facilities, post-harvest infrastructure, and working capital into their credit strategies.

Vikramarka appreciated that banks had extended ₹52,337 crore in agricultural loans as of June 2026, but emphasised that timely disbursement is equally important. He stressed that the banking system must evolve to support rural and agricultural growth, which in turn would drive the State's overall economic progress.

The SLBC meeting, chaired by the Deputy Chief Minister, was attended by senior officials from banks and the State government. It reviewed the performance of banking sectors in Telangana, including credit disbursement, financial inclusion, and recovery of loans, and discussed strategies to align banking activities with the State's long-term development goals.