Priority Lending Up, But Agriculture Credit Still Trails In Jharkhand: SLBC

Ranchi, Nov 24 (KNN) Despite Jharkhand banks exceeding national targets for priority sector lending, they are falling short of the Reserve Bank of India’s (RBI) 18 percent agri credit mandate, according to a recent report by the State Level Bankers’ Committee (SLBC).

As of September 30, 2025, banks’ priority sector advances stood at 50.11 percent of their total advances of Rs 158,714 crore, well above the national 40 percent benchmark, reported TOI.  

However, only 14.87 percent of total bank loans were directed to agriculture, significantly below the RBI’s 18 percent target.

Between March and September 2025, agricultural lending rose from Rs 23,032 crore to Rs 23,594 crore, a 13.98 percent growth.

The report highlighted ten public sector banks including Indian Bank, Central Bank of India, Punjab National Bank (PNB) and United Commercial (UCO) Bank were lending less than the required 18 percent to agriculture.

The report also included fourteen private banks such as Axis Bank, Kotak Mahindra, Bandhan and Industrial Development Bank of India (IDBI) with similar lending rate to agriculture.  

SLBC officials warned that this shortfall points to a serious policy challenge, while banks meet broad priority lending targets, they are not proportionately supporting agricultural development.

The issue has been raised repeatedly in SLBC and agriculture sub-committee meetings, with calls for ‘immediate solid steps’ to bridge the credit gap and better serve the rural economy.

(KNN Bureau)