Telangana Crop Loans: Banks Asked to Restructure in 365 Drought Mandals

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka asked banks on Tuesday, 10 November, to restructure or reschedule crop loans for farmers in the 365 mandals the state has declared drought-hit, and to release fresh credit for the Rabi season without delay. He was speaking at the State-Level Bankers’ Committee (SLBC) meeting in Hyderabad, according to reports in The Hindu, The New Indian Express and The Hans India.

What Farmers in the 365 Mandals Can Expect

The 365 mandals, spread over 31 districts, were declared drought-affected for Kharif 2026; 111 are severely affected. Earlier, on 30 October, Deccan Chronicle reported, citing official sources, that the state was considering a 12-month moratorium and rescheduling over three to five years. Bhatti also asked banks to consider interest-rate adjustments and to run outreach programmes before Rabi sowing, The Hans India reported.

Lending Targets Still Short

Banks reached 73.75 per cent of their Kharif loan targets in the first half of 2026-27, disbursing Rs 42,885 crore of agriculture loans, SBI Hyderabad chief general manager Neelesh Dwivedi told the meeting. Only 53 per cent of the Rs 96,943 crore overall agricultural credit target had been met by September. The Rabi target is Rs 38,268 crore. RBI regional director Chinmoy Kumar urged banks to restructure loans proactively and settle insurance claims faster. Agriculture Minister Tummala Nageswara Rao said the dry spell left 10 to 15 lakh borewells without water.

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The drought has already shaped other state decisions, including the El Nino jobs scheme announced for after Sankranti. Southern reservoirs are also low, as IPB News reported in its story on post-monsoon water stress. More reports are under the Telangana tag.

Bankers Yet to Announce Terms

The meeting did not produce a published restructuring scheme. It is not yet clear whether the moratorium reported on 30 October will be notified, or when banks will begin rescheduling accounts. Farmers can ask their branch or district collector about restructuring in the meantime. The state’s Rajiv Yuva Vikasam scheme for unemployed youth is due to launch on 19 November.

Source: Based on reporting by The Hindu, The New Indian Express and The Hans India. No official SLBC document was found online.

Image: Deccan Chronicle / DC File.