Even when the debt-ridden farmers are quite desperate to get fresh loans for the Kharif season following the loan-waiver announcement, 12 of the total 31 district central cooperative banks (DCCBs) in Maharashtra have expressed their inability to provide loans.
This is due to their liquidity crunch and the possession of specified banned notes (SBNs).
The list of 12 DCCBs include Jalgaon, Dhule-Nandurbar, Nagpur, Buldhana, Wardha, Nanded, Beed, Osmanabad, Parbhani, Nashik and Kolhapur. Already, Nagpur, Buldhana and Wardha have been pursuing with the government for infusion of funds to stay afloat while DCCBs of Nashik and Solapur have been hard hit due to note ban.
The farmers will now have to approach the public sector banks including State Bank of India, Central Bank of India, Union Bank of India and the Bank of Maharashtra. Besides, they can seek loan from the IDBI Bank as these five banks have communicated to the state government to provide loans where 12 DCCBs are unable to do it.
Further, the share of DCCBs in the state credit plan of Rs 52,000 crore for 2017-18 has been reduced to 32.4% at Rs 17,600 crore compared to 34% at Rs 17,548 crore in 2016-17. With the lack of participation of 12 DCCBs, the four PSU banks and IDBI are expected to disburse Rs 6,500 crore in the current fiscal.
A senior officer from the state cooperation department told DNA Money, "Unless the government transfers necessary funds with DCCBs and RBI allows them to use SBNs, they won't be able to meet the loan-disbursement target for the current fiscal. DCCBs are badly impacted due to demonetization. All 31 DCCBs put together had accepted SBNs worth Rs 5,500 crore in first four days after the notes of Rs 500 and Rs 1,000 were banned on November 8, 2016. But they could offload Rs 2,700 crore so far and still Rs 2,800 crore is lying idle with them."
The officer informed DCCBs could disburse Rs 15,127 crore, which is 86.2%, against the target of Rs 17,548 crore for 2016-17. "Of this, the Rabi season target was Rs 4,435 crore but DCCBs could disburse Rs 2,473 crore largely due to liquidity constraints after demonetization. As far as the recovery till date is concerned, it is paltry 38% against 75% which was otherwise expected. This is a cause of concern," he noted.
He admitted that the pace of recovery is slow also because those, who were repaying their loans regularly, are now waiting anxiously for their inclusion in the loan waiver arrangement.
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