Sat May 24 00:15:00 UTC 2025: ## Summary:

Telangana’s bank credit disbursement is projected to increase by 31.67% in FY 2025-26, reaching ₹8,58,100 crore. Priority sector advances are expected to rise by almost 30% to ₹3,85,855 crore, while agricultural sector disbursements are projected to increase by over 7% to ₹1,62,946 crore. These projections were announced during the launch of the annual credit plan by Deputy Chief Minister Mallu Bhatti Vikramarka at the SLBC meeting in Hyderabad. The meeting also reviewed the performance of banks in Telangana during FY 2024-25, which showed growth in deposits and advances, along with significant disbursements to various sectors including MSMEs and priority sectors.

## News Article:

**Telangana Bank Credit Disbursement Projected to Surge 31.67% in FY26**

**HYDERABAD, May 24, 2025** – Telangana’s banking sector is poised for significant growth in the upcoming fiscal year, with projected credit disbursement reaching ₹8,58,100 crore, a substantial 31.67% increase compared to the previous fiscal year. The ambitious target was unveiled during the launch of the annual credit plan for FY 2025-26 at the State Level Bankers’ Committee (SLBC) meeting in Hyderabad on Thursday.

Deputy Chief Minister Mallu Bhatti Vikramarka inaugurated the event, highlighting the state government’s commitment to fostering economic growth through strategic financial planning.

According to SLBC Convener Prakash Chandra Baror, priority sector advances are projected to increase by nearly 30%, reaching ₹3,85,855 crore. The agricultural sector is also expected to benefit, with disbursements projected to rise by over 7% to ₹1,62,946 crore.

Specific allocations include ₹93,884 crore for short term production credit, ₹45,659 crore for investment credit (agriculture term loans), ₹2,03,565 crore for MSME disbursements (representing a significant 57% increase), ₹2,486 crore for education loans, and ₹10,493 crore for the housing sector.

During the meeting, a review of bank performance in Telangana for FY 2024-25 was presented by Rajesh Kumar, Deputy Managing Director of SBI, Hyderabad Circle. The data revealed a strong performance, with ₹580 crore in education loans and ₹3,433 crore in housing loans disbursed under the priority sector. Deposits increased by ₹60,477 crore to a total of ₹8,40,430 crore, while advances grew by ₹1,02,302 crore to reach ₹10,81,361 crore. The CD ratio also saw an increase, rising from 125.53% to 128.67% during the last fiscal year.

Banks reported achieving 80.52% of the annual target for short term production loans, disbursing ₹73,105 crore. Disbursements to the MSME segment totaled ₹1,21,343 crore, achieving 93.60% of the target. Overall, banks disbursed ₹2,67,452 crore to various sections of borrowers under the priority sector, achieving 89.61% of the set target.

The ambitious credit plan signals a strong push for economic development in Telangana, focusing on key sectors like agriculture, MSMEs, and education. The robust performance of banks in the previous fiscal year provides a solid foundation for achieving the targets set for 2025-26.

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