NABARD pegs Telangana credit potential at ₹4.43 lakh crore

The bank’s Telangana office pegged the farm credit potential of ₹1.54 lakh crore for the year, as against ₹1.39 lakh crore last year, representing a growth of 11 per cent.

The National Bank for Agriculture and Rural Development (NABARD) has pegged Telangana’s priority sector credit potential for 2026-27 at ₹4.43 lakh crore in Telangana for the year 2026–27, showing a 15 per cent increase over the last year’s potential of ₹3.85 lakh crore.

The bank’s Telangana office pegged the farm credit potential of ₹1.54 lakh crore for the year, as against ₹1.39 lakh crore last year, representing a growth of 11 per cent.

The micro, small, and medium enterprise (MSMEs) segment’s credit potential is estimated at ₹2.39 lakh crore ( ₹2.03 lakh crore), showing a growth of 18 per cent. 

Addressing the State Credit Seminar 2026-27 here on Tuesday, B. Uday Bhaskar, Chief General Manager of NABARD (Telangana), said that the State Focus Paper identified sector‑specific and region‑specific opportunities across all 33 districts, while flagging infrastructure gaps and enabling policy‑credit convergence for inclusive growth.

Telangana Farmers’ Commission Chairman Kodanda Reddy asked the banks to provide loans to tenant farmers. He also advised cooperative banks to adopt technology-enabled solutions to deliver crop loans more effectively.

Major constraints

The focus paper noted that the declining landholding size in the State was a major constraint and cause for concern, as it reduces farmers’ ability to scale up operations, limits investment opportunities, and decreases their access to formal credit channels.

“Though the irrigation facilities in the State have improved over the years, there is a heavy dependence on rainfall and borewells for agriculture. This exposes farming to risk and reliance on nature,” it pointed out.

Citing the State of Indian Agriculture conducted by the National Academy of Agricultural Sciences (New Delhi), it flagged the alarming levels of fertilizer and pesticide usage. 

“The study reveals that Telangana is the third-largest consumer of pesticides in the country, following Haryana and Punjab. Telangana uses about 900 grams of pesticide per hectare, trailing behind Haryana (1.1 kg per hectare) and Punjab (1.25 kg per hectare),” it said.

Published on February 10, 2026