SLBC conducts quarterly performance reviews of banks in Karnataka

Pressing concerns such as severe climate-related challenges affecting agriculture, drought conditions, and the anticipated impact of extreme weather events, were discussed at a quarterly meeting of the State Level Bankers’ Committee (SLBC), Karnataka here on Thursday.

The committee also held discussions with progressive farmers, agriculture officials, FPOs (farm producing organisations), and women self-help groups to identify bottlenecks and develop gender-responsive agricultural projects.

With a significant share of the population dependent on agriculture, participants stressed the need for proactive financial support to farmers and vulnerable households.

It also had a quarterly review of the State’s banking and credit delivery performance with a focus on agricultural finance, financial inclusion, women’s empowerment, digital financial literacy, and strengthening of banking infrastructure.

The meeting emphasised the need for faster and more inclusive credit delivery, particularly to vulnerable sections and climate-affected communities. Field-level stakeholders were advised to explore greater credit support for animal husbandry, poultry & fisheries, with particular attention to landless farmers and other bottom-of-the-pyramid groups.

However, the committee expressed concern over the gap between loan sanctions and actual disbursements. While overall priority-sector credit growth was encouraging, cases pending beyond 30 days—and particularly those exceeding 60 days—were viewed seriously.

Banks, including those reporting significant pendency, were directed to identify the causes of delays and take corrective action. Lead banks were asked to closely monitor sanction and disbursement timelines and ensure that no cases remain pending beyond 60 days without appropriate justification.

Banks were also advised to include legends or footnotes in their reports wherever discrepancies occur between sanctioned and disbursed amounts, ensuring transparency and accurate monitoring.

Yet, the meeting noted substantial progress in women’s access to banking services, with women’s bank-account ownership having increased significantly. Participants emphasised the need to further strengthen women Business Correspondent (BC) networks and support women-led enterprises and street vendors.

Banks were also encouraged to increase the share of women BCs and provide appropriate incentives to improve their effectiveness. Efforts would also be undertaken to promote credit support for women street vendors under relevant schemes. The meeting also proposed a joint study by RBI and stakeholders to understand why cash outflow is growing faster than digital payment usage and to recommend measures to encourage greater adoption of digital transactions.

The committee reviewed the underperformance of education and housing loans against targets. Banks were urged to simplify application and disbursement processes and improve outreach.

Higher education authorities and colleges would be encouraged to facilitate bank loan desks during admission periods, while SLBC, KEA, and banks would organise student-loan awareness programmes and roadshows.

Banks were directed to improve coverage of unbanked revenue centres and promptly update details of newly opened fixed banking outlets on the designated portal. SLBC has also decided to float a campaign to leverage data of approximately 17 lakh PM-KISAN beneficiaries for focused Kisan Credit Card outreach. Lead banks will provide bank-wise and fortnightly targets to LDMs to ensure systematic progress.

The meeting was concluded with a call for coordinated action by banks, government departments, RBI, NABARD, and district-level institutions to accelerate credit delivery, strengthen financial inclusion and build a more resilient and responsive financial ecosystem across Karnataka.