1

Executive Summary

The credit planning is very important in agriculture as a large section of population is dependent on it for its livelihood. As per the guidelines of the Reserve Bank of India (RBI), the Potential Linked Credit Plans (PLPs) prepared by National Bank for Agriculture and Rural Development (NABARD) through consultative approach forms the base for preparation of Annual Credit Plans (ACP) for the banks in a district. This document has been prepared accordingly by taking into account the current developments, especially revision in priority sector guidelines and policy initiatives of Government. NABARD has redesigned the Potential Linked Credit Plans for all the districts in the country to make it more meaningful link between development planning and credit planning.The theme for the PLP 2015-16 shall be “Accelerating the pace of capital formation in agriculture and allied sector”

The exploitable potential that could be tapped with institutional credit during the reference year i.e. 2016-17 is mapped in the PLP document.

Adilabad district is located in the northern end of the state bordering the state of Maharashtra. The total geographical area of the district is 16105 sq.kms. The district is situated between 77.46 and 80.0 degrees of eastern longitude and 18.40 and 19.56 degrees of northern latitude. The district is bounded on north by Yeotmal, on the east by Chanda district, on the west by Nanded district of Maharashtra State and on the south by Karimnagar and Nizamabad districts. The district headquarters, Adilabad, is situated at 311 kms from the State Capital.The district is divided into 5 Revenue divisions. It has 52 mandals and 10 Assembly Constituencies.About 43% of the geographical area of the district is covered by the forest. As per the census 2011, the population of the district is 27.41 lakh. 35% of the population of the district belongs to SC/ST. The average annual rainfall of the district is 1157 mm. The major soil types are Red soils, black soils and loamy soils. 80% of the rainfall is received through South West Monsoon and remaining 20% through North East Monsoon. Agriculture is the main stay of the economy of Adilabad district. The main crops grown in the district are Rice, Maize, Cotton and Soyabean. The gross cropped area of the district is 654000 ha and the gross irrigated area is 210624 ha.

Adilabad has a banking network with 280 branches(Rural-158,Semi-Urban-122). The district has a network of 155 branches of Commercial Banks, 101 branches of Telangana Grameena Bank, 19 branches of Adilabad District Central Cooperative Bank, and 77 Primary Agricultural Cooperative Societies. Non formal agencies associated with dispensation of credit viz. SHGs are about 37350.

The banks could achieve 85% of the targets set under annual credit plans during the year 2014-15 During the year 2014-15 the credit flow under priority sector was ̀ 2726.38crore as against the target of ̀ 3205.64 crore. The GLC rose from ̀ 1179.06 crore during 2012-13 to ̀ 1935.04 crore during 2013-14 and further to ̀ 2726.38 crore during 2014-15. Credit flow under crop loans was ̀ 1765.08crore as against the target of ` 2228.60 crore. The achievement under term loans (` 457.01 crore) is exceeded the DCP target (` 195.11 crore) clearly showing the importance given to investment activities.

During FY 2013-14 and FY 2014-15, deposits increased by 29% and 105 % over the respective previous years. The loan outstanding as on 31.03.2015 was marginally increased by 3%. The overall CD ratio had decreased from 101.91% in FY 2013-14 to 88.33 % in FY 2014-15.

PLP Projections 2016-17

The total credit potential for 2016-17, underpriority sector for Adilabad district is estimated at ̀ 5277 crore registering a growth rate of 31 % over the PLP projection and 23% over the ACP target(revised by SLBC) for the year 2015-16. 25% of the credit potential is estimated for agriculture term lending and allied activities The crop loans have been projected at `3250 crore, term investment for Agriculture and Allied Activities at ` 1119 crore, MSME at `444.34 crore. Other Priority Sector ` 464 crore (i.e inclusive of ̀ 110.00 crore for education,` 114 crore for Housing)

2

Area based schemes

Considering large number of small and marginal farmers and people below the poverty line and as also the extensiveness of agriculture and rural development there is a need for promoting single purpose small scheme on a cluster basis which was aggregated into area development scheme. Area development schemes on dairy, sheep have been prepared in consultation with line departments & Banks. These schemes may be encouraged by banks in the identified cluster which would also facilitate planning and execution of infrastructure facilities viz., backward and forward linkages for full realization of the benefits of the scheme.

Thrust Areas

Thrust areas for 2016-17 are JLG / SHG financing, financing of post-harvest infrastructure, mini processing units, Producer Organizations, financing against NWRs, area based schemes etc

Conclusion

There is a need for a coordinated approach for enhancing capital formation, strengthening of SAMIS reporting system, better monitoring and review at JMLBC, DCC meetings, effective implementation of financial inclusion plans including coverage of Oral Lessees, Tenant Farmers into Joint Liability Groups, to take timely and corrective measures for accelerating the pace of capital formation in Agriculture and allied activities.

PLP 2016-17 | Adilabad

3

Appendix A to Annexure 1

Broad Sector wise PLP projections 2016-17

(` lakh)

-Broad Sector wise PLP projections – 2016 17

Sr No. Particulars PLP Projections 2016-17

A Farm Credit 1 Crop Production Maintenance and Marketing 324978.35

2 Term Loan for agriculture and allied activities 103536.71

Sub total 428515.06

B Agriculture Infrastructure 5373.37

C Ancillary activities 3007.60

i Credit Potential for agriculture (A+B+C) 436896.03

ii Micro Small and Medium Enterprises 44434.54

iii Export credit 0.00

iv Education 11000.00

v Housing 11475.00

vi Renewable Energy 440.04

vii Others 19538.85

viii Social Infrastructure involving bank credit 3976.23

Total Priority Sector (I to VIII) 527760.68

PLP 2016-17 | Adilabad

4

Appendix B to Annexure 1

-Summary of Sector / Sub sector wise PLP Projections -2016 -17

(` lakh)

Sr. No.

Particulars PLP Projections

2016-17

I Credit Potential for Agriculture

A Farm Credit

i Crop Production, Maintenance and Marketing 324978.35

ii Water Resources

5274.70

iii Farm Mechanisation

16710.58

iv Plantation & Horticulture(including Sericulture)

3554.80

v Forestry & Waste Land Development 691.08

vi Animal Husbandry - Dairy 7053.23

vii Animal Husbandry -

Poultry

1207.40

viii Animal Husbandry - Sheep / Goat / Piggery etc. 2317.55

ix Fisheries ( Marine,Inland, Brackish water)

546.14

x Others (Bullock, Bullock Carts etc.)

66181.22

Sub Total 428515.0 6

B Agriculture Infrastructure

i Construction of Storage facilities ( Warehouses,Market Yards,Godowns, Silos, Cold Storage)

1365.00

ii Land Development, Soil Conservation,Watershed development 1512.70

iii Others (Tissue Culture, Agro Bio-technology, Seed production,Bio-pesticides/fertilizers, Vermin Composting)

2495.67

Sub Total

5373.37

C Ancillary activities

i Food & Agro Processing 2767.60

PLP 2016-17 | Adilabad

5

ii Others (Loan to Coop. Socities of Farmers for disposing of their produce, Agri Clinics/ Agri Buisness Centres, Loans to PACs / FSS/ LAMPs, Loans to MFIs for onlending

240.00

Sub Total 3007.60

Total Agriculture 436896.03

II Micro, Small and Medium Enterprises

i MSME - Working Capital 10254.12

ii MSME - Investment Credit 34180.42

Total MSME 44434.54

iii Export Credit@ 0.00

iv Education 11000.00

v Housing 11475.00

vi Renewable Energy 440.04

vii Others 19538.85

vii

Social Infrastructure involving Bank

Credit

3976.23

Total Priority Sector 527760.68

PLP 2016-17 | Adilabad

@ credit dispensed at port centre

6

DISTRICT PROFILE

The district derives its name Adilabad from its headquarters town which was named after Adil Shah, the ruler of Bijapur. The total geographical area of the district is 16105 sq.kms. The district is situated between 77.46 and 80.0 degrees of eastern longitude and 18.40 and 19.56 degrees of northern latitude. The district is bounded on north by Yeotmal, on the east by Chanda district, on the west by Nanded district of Maharashtra State and on the south by Karimnagar and Nizamabad districts. The district headquarters, Adilabad, is situated at 311 kms from the State Capital. The district is divided into 5 Revenue divisions. It has 52 mandals and 10 Assembly Constituencies.There are 866 Grama Panchayats in the district, out of which 27 are Notified and remaining 839 are Non-Notified. The GDDP of the district at constant prices (2004-2005) is estimated at ` 10837crore during the year 2013-14.The literacy rate is 61.01% as against the State literacy rate at 66.5% .17 APMCs are functioning in the district and are well connected with Road network. Adilabad district is famous for the Goddess Saraswati temple situated at “Basar” town in Mudhole mandal. The Nirmal toys and paintings made at Nirmal town of the district by a group of artisans are very popular. The district is also known for the Kuntala and Pochera waterfalls located in Boath mandal. The other prominent feature of the district is the tribal jatra celebrated during January / February of each year in Keslapur village of Utnoor mandal.

Agriculture is the main activity of the district. Besides agriculture, the people of eastern region of the district depend on industry for employment. A large chunk of tribal population, besides agriculture, depend upon minor forest produce for their livelihood. The Regional Agricultural Research Station situated at Adilabad is conducting research on cotton and advises farmers to adopt modern cultivation and integrated pest management techniques. Cotton, Soyabean, paddy, jowar, maize, pulses are the main crops in the district. Mango and citrus are the main horticultural crops grown in the district. Considering the natural resource endowment, geographical conditions, level of development and infrastructure facilities available in different parts of the district, the district is broadly divided into three regions i.e.

• Agriculturally developed region comprising Nirmal, Khanapur, Luxettipet joint mandals (15 mandals)

• Tribal region consisting of Wankidi, Utnoor, Adilabad, Boath and Mudhole joint mandals (22 mandals) and

• Industrially developed region consisting of Sirpur (T), Asifabad and Chennur joint mandals (15 mandals)

The district is undergoing rapid change in its agrarian structure, particularly with cropping patterns, during the recent years. There is considerable increase in Cotton and Soyabean cultivation in the district. Programmes like Micro-Irrigation, watershed development and creation of irrigation potential and infrastructure development through RIDF investments have created a vast potential to deploy credit on a larger scale in farm and non-farm sectors.The issues critical to the district are crop diversification, soil health improvement, farm mechanization, extension, reliable electric power supply etc.

PLP 2016-17 | Adilabad

7

PLP 2016-17 | Adilabad

No. of Blocks

10

District - State -

Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households

Commercial

Banks 26 155 59 96 Nil NA NA 883 NA NA

Regional Rural

Bank 1 101 87 14 Nil NA 14807 130 NA 180000

District Central

Coop. Bank 1 19 12 7 Nil NA NIL NA NA

Coop. Agr. &

Rural Dev. Bank 0 0 0 0 Nil NA NA NIL NA NA

Primary Agr.

Coop. Society 67 0 0 0 Nil NA NA NIL NA NA

Others 3 5 0 5 Nil NA NA NIL NA NA

All Agencies 98 280 158 122 Nil NA NA NA NA NA

31.03.13 31.03.14 31.03.15 Growth(%) Share(%) 31.03.13 31.03.14 31.03.15 Growth(%) Share(%)

Commercial

Banks 1323779 1523149 3913200156.92

74.43 33839500 40506428 48875685 20.6 70.9

Regional Rural

Bank 638803 937883 124203632.43

23.63 9937100 15959388 18279900 145.4 26.5

Cooperative

Banks 32358 69016 7785112.80

1.48 1000000 1159040 1273236 99.6 1.9

Others 0 19495 24155 23.90 0.46 207600 359219 476227 32.6 0.7

All Agencies 1994940 2549543 5257242 106.20 100.00 44984200 57984075 68905048 298.2 100

31.03.13 31.03.14 31.03.15 Growth(%) Share(%) 31.03.13 31.03.14 31.03.15 Growth(%) Share(%)

Commercial

Banks 488303 236829 27925617.91

45.68 32466400 40897284 415118881.50

68.21

Regional Rural

Bank 199708 221898 2373756.97

38.83 9987900 14263209 1583604111.03

26.02

Cooperative

Banks 62285 69236 9313834.52

15.23 2200000 3671576 3148251-14.25

5.17

Others 0 1633 1608 -1.53 0.26 715700 257463 365268 41.87 0.60

All Agencies 750296 529596 611377 15.44 100.00 45370000 59089532 60861448 3.00 100.00

31.03.13 31.03.14 31.03.15 Deposit Credit Deposit Credit

Commercial

Banks 95.94 100.96 84.93 NA NA 3913200 279256

Regional Rural

Bank 100.51 89.37 86.63 NA NA 1242036 237375

Cooperative

Banks 220.00 316.78 247.26 NA NA 77851 93138

Others 344.75 71.67 76.70 NA NA 24155 1608

All Agencies 100.86 101.91 88.33 NA NA 5257242 611377

Commercial

Banks 25883126

62

15083786

53

5003535

80

17347

100

4206777

81

Regional Rural

Bank 13081578

31

10793826

38

97576

2

0

0

219625

4

Cooperative

Banks 2651884

6

2638149

9

1134404

18

0

0

738681

14

Others 168401 0 2292 0 5551 0 0 0 23515 0

All Agencies 41784989 100 28518053 100 6241066 100 17347 100 5188598 100

Commercial

Banks 9874800 503470050.99

13220200 866820065.57

18833800 1366690072.57 63.04

Regional Rural

Bank 6407800 523880081.76

9745500 746120076.56

11127400 1023990092.02 83.45

Cooperative

Banks 1357400 1517100111.77

2157500 3221000149.29

2095200 3357000160.22 140.43

Others

All Agencies 17640000 11790600 66.84 25123200 19350400 77.02 32056400 27263800 85.05 76.30

2012-13

Crop Loan 9200000 8610000 93.59 16565000 14211600 85.79 22286000 17650800 79.20 86.19

Ach'ment [%]Target

[`'000]

Achievement

[`'000]Ach'ment [%]

Broad Sector

2013-14 2014-15Average Ach[%]

in last 3 yearsTarget

[`'000]

Achievement

[`'000]Ach'ment [%]

Target

[`'000]

Achievement

[`'000]

Achievement

[`'000]Ach'ment [%]

Target

[`'000]

Achievement

[`'000]Ach'ment [%]

8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Agency

2012-13 2013-14 2014-15Average Ach[%]

in last 3 yearsTarget

[`'000]

Achievement

[`'000]Ach'ment [%]

Target

[`'000]

Amount

[`.'000]

% of Total

Loans

Amount

[`'000]

% of Total

Loans

Amount

[`'000]

Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women

Amount

[`'000]

% of Total

Loans

Amount

[`'000]

% of Total

Loans

Commercial Banks

Regional Rural Bank

Cooperative Banks

Others

All Agencies

6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015)

% of Total

Loans

Agency

Priority Sector Loans

4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs)

AgencyCD Ratio

AgencyDuring 2014-15 Cumulative

AgencyNo. of accounts Amount of Deposit [`'000]

3. LOANS & ADVANCES OUTSTANDING

AgencyNo. of accounts Amount of loan [`'000]

AgencyNo. of

Banks/Soc.

No. of Branches No. of non-formal agencies assoiated Per Branch Outreach

2. DEPOSITS OUTSTANDING

Banking Profile

ADILABAD TELANGANA Lead Bank - STATE BANK OF HYDERABAD

1. NETWORK & OUTREACH (As on 31/03/2015)

Term Loan (Agr)2780000 1950000

70.141341200 1400100

104.391951100 4570100

234.23131.82

Total Agri. Credit11980000 10560000

88.1517906200 15611700

87.1924237100 22220900

91.6887.98

Non-Farm Sector1160000 330600

28.501622000 1631300

100.571785100 1847300

103.4892.16

Other Priority

Sector 4500000 90000020.00

5595000 210740037.67

6034200 319560052.96

31.98

Total Priority

Sector17640000 11790600 66.84 25123200 19350400 77.02 32056400 27263800 85.05

79.57

Source : Lead Bank Office, ADILABAD & SLBC

PLP 2016-17 | Adilabad